Why You Have To Understand Your Credit Report

By Lauren Morse

Previous to making a significant acquisition that will entail financing it is intelligent to get a copy of your up-to-date credit report. A credit score and credit report can in fact make or break your potential acquisition and because the majority of credit reports do include mistakes it is wise to become aware of any potentially untrue credit before you end up with an unwelcome shock.

The majority of credit reports include mistakes, misrepresentations and inaccuracies. In fact, it has been predicted that as many as 75% of all credit reports contain significant enough mistakes to prevent the individual from acquiring credit yet discrepancies that can be either removed or updated via credit repair.

Many folks are under the incorrect impression that when they obtain a credit report it damages their credit. This is not factual because each time you get a copy or your own report it is deemed a soft inquiry and it has no effect on your credit score. Only hard inquiries from creditors are counted against you.

Even one single inaccuracy showing up on your credit report can prevent you from obtaining the credit that you applied for. You could also be charged a higher interest rate or down payment if you do get the credit. In this day and age, credit reports are becoming even more significant as insurance companies are utilizing them to deny coverage and some employers are even using them as a hiring tool.

The truth is that there are frequent circumstances in which people may ask to see your credit scores. Utility companies, landlords, insurance companies, hospitals and doctors, not to mention the ones you predictably presume such as mortgage companies, credit card issuers and other lenders. It is critical to know nevertheless that it is against the law for anybody to inspect your credit without your unequivocal authorization.

You can examine your own credit report by contacting the credit bureaus and making a request. In fact you are entitled to obtain a without charge report one time each year from each of the three main credit-reporting agencies. It is critical to get all three credit reports because they do not share or exchange information and a lender could utilize just one or they could use all of them.

Take advantage of the without charge annual report and make sure to examine your credit report on a consistent basis. If there is a lot of abnormal activity or you have a anxiety about identity theft there are credit monitoring services that will give notice to you of any kind of change going on on your report. These services are just an additional service that can be advantageous but they are not required.

You, the consumer, are really the only person who is concerned about the data on your credit report so it is your responsibility to make sure that you know what is being reported. When you are aware of difficulties you can take the credit repair steps that are needed to repair your credit. - 31382

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