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Experts: Get Credit Reports Now

By Faye Mergel
Published: Sunday, September 6th, 2009

Experts say that consumers should get their credit reports now, more than ever. In what many perceive to be a worsening economy, experts suggest that knowing one’s score will help in making better decisions.

Experts: Get Credit Reports NowA credit report indicates a person’s present financial status. Much of this is based on one’s score. This report is gathered by banks, creditors, and even cell phone companies, to determine an applicant’s likelihood of paying. A person who is likely to pay is naturally given a lower interest rate. The interest rate, along with the amount of money a person can borrow, will all depend on his credit health. There are cases when a credit application is rejected because of a bad report.

Credit specialists say that if consumers know their credit report, they will be more guided in their financial decisions. For instance, one would not apply for a car loan if he knows that his report is not good. This will make him incur high interest rates. He will also be given fewer options since his records will say that he is not in a position to pay for more expensive items. If he takes the advice of the experts, he will make his score better before applying for a loan.

The only way to have a better report is by having a better score. Paying credit cards promptly can significantly boost credit score. A creditor will give better appraisal to a client whose card balance is below 30% of the total credit limit. Those who have paid off their remaining card balance can expect higher limits with their new creditor.

Correcting errors with the credit bureau is another measure that one can take to attain a better credit report. For instance, there might be charge-offs and late payments that were mistakenly placed under a person’s name. These errors will negatively affect a report, so they should be corrected as soon as possible.

Clearing debt records can also help considerably. Unpaid debts make up a third of a person’s credit score. One should not run the risk of getting low scores for paid off loans. Consumers are advised to update the credit bureau once they have paid a debt off.

There is no need to spend in order to get a credit report. Many websites offer reports for free.  Consumers are advised though to refer to trusted finance sites before giving personal info to any credit report website. Experts warn that there are many bogus sites on the Internet who scam unsuspecting clients.

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