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Wednesday, October 28, 2020

Importance of your credit report

Posted by admin on February 4, 2009

If you are facing some personal financial obligations and you are looking for new credit from potential lenders, it is important that you must check your credit report and understand your credit rating. You can pull the latest copy of your credit report from the three national credit reporting agencies. The credit report will reflect your money managing skills and borrowing habits. It will give you a fair idea of your past credit history and how you have been maintaining accounts with multiple lenders. It will determine the credit worthiness and accordingly freeze credit limits.

Once you have got the latest copy of your credit report, review it thoroughly and see if there are any inaccurate items posted on your file. Incorrect information will lower your credit scores and you will face problems in getting new credit. Make sure that you have checked the status of each account and if you find any item to be dispute, inform the credit bureau reporting the error. They will get your dispute investigated with the information provider. If your dispute is found correct, the inaccurate negative item will be removed from your credit file.

Good credit rating is very important in order to get best deals from the potential lenders. If you had not been keeping a good credit history in the past, it is time to repair your credit now. You are bound to take borrowing more seriously and pay on time, to build a good credit history.

Beware of any fraudulent activities. There are too many scams on the internet. If you find anyone saying that they will repair your bad credit at a very little cost, ignore their claims. As per the federal laws, accurate negative information cannot be removed from the credit report before seven years. If anyone says that they can remove those negative items, they are trying to scam you. Check your credit report at least once a year to keep a track of your spending habits and your credit potential.