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Do you Know the Benefits of Checking your Credit Report?
Copyright 2004, Mary Arce
Do you know why you should check your credit report?
Of course you do, because you have undoubtedly experienced them
working in your life!
No matter where you roam, your credit report follows you
through life, updating all aspects of your life: your
employment, where you live, your opened credit accounts, your
closed accounts, your payment history, and even City Hall public
records on you.
In this country, a good credit history brings you benefits of
all kinds--a home mortgage, an apartment lease, an auto loan, or
even more credit--with ease.
Like a job resume, your credit file carries a lot of weight,
that's why you need to keep an eye on what it says about you.
Many options are cut off to you if you do not look "credit
worthy" on paper. A bad report can mean higher rates on loans
and insurance. It can also mean whether you get hired or
promoted by a growing number of employers who now use them.
Even if you think you have a good credit standing and you pay
your bills on time, you still need to review your credit file
for accuracy.
Studies have shown that credit files have an error rate as high
as 70%, often the result of simple human or computer error.
Sometimes these errors show you being late in paying your bills
when you are not.
Your file might even leave out information that could sway a
decision in your favor. The most common error is where damaging
information of another person, with a similar name or account
number, is mixed into your profile.
Monitor your personal credit file so that you are alerted
whenever negative or derogatory items are reported against you.
A neglected credit file can lead to some major inconveniences
in the future. You should fix mistakes or remove any incorrect
information as soon as you find it.
Errors that creep onto your report take time to correct.
Catching these mistakes when they occur helps resolve them
faster.
When you improve your credit worthiness you can qualify for
better rates - which adds up to big savings for you.
Even if you think you have an unblemished past, checking your
report lets you know what a future lender or employer will learn
about you.
If your credit report is less than perfect now, you can deal
with lingering problems effectively, and move towards a better
credit standing in the future.
A good credit rating means more money in your pocket and less
out the door!
Mary Arce is a consumer advocate and author helping Americans solve their credit problems and save massive amounts of money on mortgage and credit card interest. WHY are some people getting RICH managing their debt? Click Here Now
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