Credit Report News, Tips & Advice
Website CertifiedPrivacy Protected
Credit Report News, Tips & Advice « Credit Reports > Credit Report News > Poor Credit Shoppers May Have a Cold Holiday This Year

Poor Credit Shoppers May Have a Cold Holiday This Year

By Faye Mergel
Published: Saturday, November 28th, 2009

Consumers who plan to open store cards this holiday season are advised to check their credit report first before signing up for any plastic. Florida financial experts say those who open store cards before checking their credit report often have to shoulder high interest fees and, at times, rejected by creditors.

Poor Credit Shoppers May Have a Cold Holiday This YearIdentity theft and inaccuracies by lenders are two of the main reasons specialists cite why consumers are suffering from poor credit, aside from being unable to meet bills and other payments. Experts say consumers can get the most favorable terms if they check their credit report first before opening an account with retail stores or getting any form of credit.

According to finance advisers, consumers who regularly check their credit report are able to know if their accounts are updated or accurate. They explained that some delinquencies, foreclosures, or bankruptcies committed seven years ago may not have been removed from a credit report when the bureaus are supposed to erase them after that period. However, holiday shoppers are reminded that a bankruptcy could remain under a consumer’s name for ten years.

Experts also tell shoppers that inaccuracies could keep them from getting the retail store card they need to buy gifts this season. There are lenders who mistakenly report that a consumer is behind his mortgage payment or has not paid as agreed during a loan modification. Experts say there are even cases when a creditor reports a borrower as deceased to the bureaus, adding that in such cases, card or loan applicants are automatically rejected by their new creditor.

Consumers who know about the inaccuracies in their credit report have the advantage of being able to correct them. Experts note that there are consumers who are charged with high interest rates unnecessarily because they have not contested those mistakes with the bureaus.

Consumers planning to apply for store cards this holiday are advised to pull out their credit report from Experian, Equifax, and TransUnion to make sure that they get the interest rate they deserve. But they are likewise advised to consider their application for any plastic carefully so they will not be carrying balances that they will not be able to pay.

Specialists tell consumers that they can get their credit report from the three major bureaus for free at annualcreditreport.com. The site was created by the Federal Trade Commission to provide consumers a free copy of their report once a year. Consumers who plan to refinance their mortgage or apply for an auto loan are also advised to assess their financial status.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.