Checking your Credit Report

Your credit report contains all the information on how you handle your debts. It shows your loan balances, payment history, account status, your address, the bills you pay and how you pay them, your place of work and other past information such as that on bankruptcy or repossession of any property. These reports are maintained and updated by credit bureaus -also known as credit reporting agencies- who receive such information from the companies with which you do business. Although some companies do not update your credit reports regularly, most of them update your loans and credit cards on a monthly basis.

Your credit report is the most correct and up-to-date indication of your credit history, but this does not mean that it’s devoid of errors and inaccuracies. You should check your credit report regularly to spot any errors and correct them. To correct such errors you can simply call the credit-reporting agency to notify them. It is also good to know your credit standing before you try to acquire a new car, a mortgage or any other property since this report determines largely whether you get these things.

 Identity theft is becoming a major problem nowadays but assuming this will not happen to you can be your pathway to a serious financial downfall. Checking your credit report on a regular basis will help you find out any suspicious transactions and then you can immediately take the necessary action to rectify that situation. Otherwise, you may realize that you are a victim of identity theft when it’s too late and you have a pile of debts you have to take care of. When you found out that you have been a victim, it’s advisable that you freeze all your accounts or your credit reports with the key credit reporting agencies to prevent further damages.

Checking your credit report frequently gives you a glimpse of whether your credit score is improving or declining. A credit score affects your financial life a great deal and you can improve it by paying your bills on time and reduce the balances you have on your credit cards. You can check your credit report online which gives you the advantage of fixing the errors yourself.

Before checking your credit reports, make sure that you have all your financial records since you may be asked to give all the necessary financial information, but this depends on whether you are checking the report online, via mail, or by phone. There are many sites and other sources that claims to get you a free credit report and you should be wary of these as they are mostly scams. It is a requirement that your credit bureau provides you with a free credit report at your request once every year and only one website is authorized to give you your credit report.

For more information on credit cards, go to http://annettapowellblog.com/. See you there!