Have you ever wondered why we are always reminded to check our credit reports regularly? Did you ever think of the sound reason behind this constant reminder?
Well a lot of people are a bit perplexed and curious about the answers to the questions above. So, they try to find answers on their own just so they can satisfy their need to know. If you are one of these people who would like to be enlightened on the importance of monitoring your records, then surely you have stumbled upon the right article.
It is always a good idea to periodically check your credit report for errors and problems so that you can correct them. And, you are entitled to receive one free report from each of the credit reporting agencies each year. Who are the big three CRAs: Equifax, Experian, and TransUnion.
To get your free credit report online, contact each CRA though the Internet and request a credit report. There should be no charge. If there is, then phone the company for assistance. While there are services that will obtain the report from each of the three CRAs (saving you some time), there have been issues where the requested reports are not received, and yet the CRA will have your request on their database as being issued. The process to correct this is a lot of aggravation.
It is important to check credit report data because everyone, including lending companies and credit card companies make mistakes when reporting information to the credit bureau. Checking the data that is on your credit report can help you to make sure that you have the most up to date and above all, accurate information reflected there. It is also important because disputes can only be filed within a specific timeframe. If you wait too long you could end up being unable to correct the discrepancy and your dispute simply ends up dismissed.
There are a number of things which appear on your credit report. This is why it is important to check credit report data thoroughly and regularly. Legislation allows for one free credit report every year to help people make sure the information is accurate. Since most people usually only have a few credit cards, loans and perhaps a mortgage or lease history it is usually easy to use this one time to check to make sure that your data is correct. Errors are usually made in updating already existing data rather than data that is already on the report.
This is why it is even more important to check your credit report when you make major changes such as debt consolidation, new acquisitions of lines of credit, loans, mortgages, vehicles or when you settle a debt. You should do this as soon as possible to make sure that the debt is marked off correctly as the right type of debt, with the right amounts. Depending on the debt, it will give the balance on revolving debt and usually the monthly amount owed on installment debt. It is usually a good idea to make sure this information is accurate, if not you may end up with a dispute or may end up not being able to obtain a service you need because the data is not correct.