A good reputation is more valuable than money. Publilius Syrus

Checking your credit report on a regular basis is important ? it not only can help to prevent errors that may cause you to be denied access to new credit, but also can be helpful in uncovering whether or not you’ve been a victim of identity theft. And last, but not least, since your credit score is based on the information contained within your credit reports, it’s important to make sure that there are no errors on them that could lead to a lowered credit score.
Checking your credit reports can be a chore, but with the right information (which you’ll have after reading this chapter), you’ll see that getting your hands on your reports and checking them over is fast and easy!

Where to Obtain Your Credit Report

Go to www.AnnualCreditReport.com to get your credit report. This is the only website that is authorized by Federal law to provide you with the free credit report that the law entitles you to. While you will find many other websites that offer free credit reports, there are often strings attached.

How Often Are You Allowed a Free Copy of Your Credit Report?

By law, you are allowed to access your credit report for free once per year, from each of the big three credit reporting agencies. You are also entitled to a free copy of your credit report if any of the following occur:

• You are denied credit, insurance, or employment based on your credit report (you must request your free report within 60 days of being notified ? your notification should include the name and contact information for the credit reporting agency that was used).
• You are unemployed, but plan on looking for a job within 60 days.
• You’re on welfare.
• Your report contains errors due to fraud(for example, identity theft).

 

Hot Tip: Avoid paying for pricey credit monitoring services by staggering your credit report requests instead. Ask for a report from Equifax in January, Experian in May, and TransUnion in September. For most people, this is a great way of monitoring your credit for free.
Remember: Although you are entitled to a free copy of your credit report periodically, you are not entitled to a free copy of your credit score ? the credit reporting agencies, including FICO, are allowed to charge you for that.

Your 6-Step Credit Check Checklist

Now that you know where to get your credit report, here are the six steps to successfully checking it over.

1. Verify that your name, address, date of birth, and social security number are accurate.

Be on the lookout for name confusion. For example, Mike Smith or Michael Smith is likely ok, but Michael Smith II and Michael Smith I could be totally different people. Ditto for Jr. and Sr. If either of these scenarios apply to you, be sure your credit report shows the correct title.

2. Read over the guide to interpreting a credit report that is provided by the credit bureau.

Credit reports often have codes that make no sense to a first time user. Save yourself the frustration of reading their “foreign language” by reading through the user guide or help files that explain how to interpret the information and codes contained in your report.
I’ll admit that it’s dull and boring to read through the guide, but it’ll be well worth it since it will save you tons of time when reading through your report. And besides, if you check your credit report regularly (and you should!), with time, the information contained in the guide will become committed to memory.

3. Look for any errors in account activity.

According to the US Government Accountability Office, 25% of all credit reports have errors, and about half of those errors are affecting the credit score. When you look over your credit reports, ensure that there isn’t any incorrect information, such as claims that you paid late when you didn’t.
Pay particular attention to any negative account activity, such as late or missed payments ? if the information is accurate, so be it. But if the negative information is not correct, you can have it fixed.

4. Look for accounts that do not belong to you.

Make sure all of the accounts listed on your report actually belong to you. Sometimes simple errors in Social Security numbers or misspelled names can lead to someone else’s account information showing up on your report.

5. Check for duplicate accounts.

Sometimes if an account is transferred from one company to another, due to a merger, for example, the account ends up on your credit report twice: once under each company name. This can lead to your amount of available credit being reported inaccurately.

6. Look for lines of credit that are inactive.

If you have lines of credit that are no longer needed, it may be worth closing them to “make room” for a new credit application somewhere else. However, I only recommend doing this if you need to since having unused credit can improve your credit score by helping to keep your credit utilization percentage lower.

The 2 Things You Must Do If You Find Errors on Your Credit Report

If you find any errors, here are the two steps that you must take to fix them. The error may be an innocent mistake, or a sign of something more serious such as identity theft ? either way, you need to find out, and fix it.

• In writing, inform the credit reporting agency that is showing an error on their report. Unless they consider your request frivolous, they are generally required to investigate within 30 days. To expedite the process, provide them with all the information (copies, not originals!) they could possibly need from you in order to begin their investigation.
• In writing, inform the company that provided the inaccurate information to the credit reporting agency that they made an error and you are formally requesting an investigation. Provide them with all relevant information in your possession that proves the accuracy of your claim. Again, send copies, not originals, of any documentation that you provide.

 

Expert Tip #1: Even if a credit reporting agency allows you to report an issue via telephone, this may not be your best option. Ideally, you ought to have copies of all correspondence so that you can refer to them if things get lost. Make photocopies of all written correspondence, save copies of any e-mails that you send, and take screenshots of any information you provide via online Contact Us forms.
To take a screenshot on a PC, press and hold the Alt button while you press the Print Screen key. The Print Screen key is located near the upper-right corner of your keyboard.
To take a screenshot on a Mac, press Command + Shift + 4 at the same time. Then drag the cursor to capture the portion of the screen that you wish to save a picture of.
Expert Tip #2: When mailing documentation, pay extra for the service that provides you with proof of delivery. This way, you’ll be 100% certain that the information was received in a timely manner.

If you win your claim, the company that reported the inaccurate information must inform all three major credit bureaus of the error. In addition to that, the credit reporting agency whose report showed the error must provide you a corrected copy of your credit report for free.
Once the credit reporting agency agrees to correct the error, it could take a few weeks for the change to show up. If you require the correction to occur sooner in order to facilitate your approval for a loan, ask your lender about a rapid rescore. This service isn’t available directly to consumers, but to lenders ? it often allows for credit scores to be corrected within days.

So say you’re applying for a mortgage and correcting an error could lead to an increase in your score and a better interest rate for your mortgage. If you can provide your lender with proof of the error, they may be able to expedite a rapid rescore for you (extra fees may apply).
However, there are no guarantees that you’ll be granted a rapid rescore, so the best option is to check over your credit reports a few months in advance and allow lots of time for any errors to be investigated and corrected.

5 Bonus Tips

• If you are checking your credit report for the purposes of verifying accuracy before obtaining credit, be sure to ask the creditor which report and score system they use so you can check those first. You might as well start with the credit reports that are most important.
• If you’re like most people, checking each of your three credit reports once a year will be plenty to keep on top of things. As for your actual credit score, according to FICO, in a three-month period, 75% of people have a change in their credit score of less than 20 points ? in other words, for most people, the month-to-month changes in their credit scores are relatively small. So it’s probably not worth paying for access to your credit score too often, unless you need to know your number to double check what kind of shape you’re in.
• Generally speaking, collection accounts should be removed from your credit report after seven years ? if you see any older than that, contact the relevant credit reporting agency and ask if it can be removed.
• Don’t worry if you see a bunch of “Account Management” or “Account Maintenance” inquiries from your credit card company ? it is perfectly normal for them to check your credit reports periodically, and these checks will not affect your credit score.
• To check up on your FICO score, look at the myFICO report ? it will even tell you what negative factors might be affecting your score. You can order your score on their website: www.myfico.com 먹튀검증

 

Summing Up

You’ve now learned how to get your hands on your credit report, how to check it over, and what to do if you find any mistakes. Before you move on to the next chapter, follow the action steps from this chapter (summarized below) to check over your credit report. I’ll wait here, and when you’re ready, we can head over to the next chapter together.

Action Steps

• Go to www.AnnualCreditReport.com and get your free credit report. Remember, unless there are extenuating circumstances, it’s best to stagger your credit report orders so that you can check one every four months. For example, check Equifax in January, Experian in May, and TransUnion in September. However, if this is your first time checking your credit reports in a long time, it may be worthwhile to check them all at once this one time.
• Go through the 6-step credit check checklist and verify the accuracy of the information on your credit report.
• If you find any errors, take action to correct them.