Obtaining a copy of your credit report is empowering. It gives you insight into what financial institutions see when they are deciding if you are credit worthy. Knowing your rating and seeing the status of your accounts lets you know if you can improve the way you handle your finances. Taking an honest look at your financial record is the first step in taking control of your finances.
Look for errors or inaccuracies reported by the financial institutions. If an account is reported as delinquent when you have consistently made payments on time, this can have a negative impact on your rating. Contact the financial institution that is reporting the incorrect data. Inform them of the errors. Provide documentation to verify the accuracy of your claims, if necessary. Ask how long it will take from them to update the correct information with the credit bureau. Review the report again at a later date to find out if the corrections were made.
Protecting yourself from identity theft is another major benefit to checking your financial data. Sometimes your information is compromised and it may be used for another person's benefit without your authorization. If you notice new credit card accounts or loans are taken out in your name, contact the bureau immediately. You should also contact the companies that issued those loans and credit to advise them that you never opened those accounts. Regularly reviewing the data is the best way to ensure that any activity or accounts being reported actually belong to you.
Sometimes the bureaus list incorrect information in your report. They may have misspelled your name, or don't have all of your current and previous addresses. They may also have inaccurately transcribed some of your account numbers. Let the bureau know if there are any mistakes and make sure they are properly fixed.
If your overall rating is low, it is an indication that you need to make some changes with the way you handle your finances. Set a monthly reminder for yourself to ensure you make all of your payments on time. Reassess your budget and cut out unnecessary expenses. Figure out if more money can be used to pay off debts sooner and put into savings.
Having a clear picture of your financial situation will help you realize the changes you need to make. Improving management of your finances takes dedication and patience. Ultimately, it will lead to long-term benefits for you and your family.
Get your credit report now! You can find details about important reasons why you need to review your credit report regularly, today.