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In this age of rampant identity theft people all too often have the thought, “I should check my credit report,” but they never actually follow through and tick “get credit report” off their To Do list. The main reasons they fail to follow through involve a number of common “lies” or misconceptions about what is actually involved in getting, understanding, and correcting their own credit history. Their reasons include:
By law (since 2005) in the United States Americans can get one free credit report from each of the three major reporting bureaus (Equifax, Experian, and TransUnion) per year. It’s doesn’t cost anything and it’s as easy as visiting AnnualCreditReport.com. Given that, there’s really no reason why “get credit report” should be such a dreaded item on your list of things to accomplish.
There is no mystery when it comes to understanding your credit history and people are mistaken to take that view. “Credit report” is simply a title for a summary of a consumer’s financial history and activity. It’s based on patterns of payment and resolution of debt. Basically if you pay your bills and resolve your debts on time and don’t file for bankruptcy, the score associated with your report should be strong. It’s your business — things you have done which you should recognize and remember. All you have to do is read the summary. If you don’t recognize and remember an item, flag it to be investigated further. Do the same for things that are just wrong, like a debt you’ve paid that is still showing up as unresolved, or a bad credit item that is so old it shouldn’t still be effecting your financial life.
Our credit reports come in a very easy to ready format.
It simply is not true that there’s nothing you can do to fix unfavorable items on your credit history. Remember, the first step is simply getting the history itself — place the order! Credit report examination is step number two. Taking action is step three. When you identify problem items, take the initiative and call or write the credit bureau in question. (They all have websites: equifax.com, experian.com, and transunion.com.) Start negotiating. If the credit bureau can’t prove every item on the report or get confirmation within 14 days, the item has to be taken off. Remember those old items that may be lingering around? If the company in question doesn’t have the records or doesn’t want to bother digging them out, that nagging old debt has to be taken off your history. No questions asked.
Periodically reviewing your credit standing and taking steps to remove negative incidents that may be effecting your financial reputation is crucial to protect yourself and to ensure you can get the financing you need when you need it. Many times it’s only when people get a credit report that they realize someone has been using their identity to run up debts. Additionally, reviewing your credit history may be the only way to understand why you’re getting turned down for your loan or mortgage applications. If you don’t know what the problem is, you can’t fix it.
Don’t fall prey to the misconceptions and urban myths that have built up around credit reports. They are nothing more than a record of your financial history and a tool to help you manage your financial standing and reputation. Reviewing your credit report should be as routine as a visit to the dentist or getting the oil changed in your car. There’s nothing to dread and everything to gain by taking responsibility for your own credit standing.
Enjoy our credit report monitoring for 7 days free!
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