Its Your Credit - Take Care of It!
Thanks to the Fair and Accurate Credit Act, American consumers can receive a free annual credit report from each of the three major credit bureaus-Experian, TransUnion and Equifax. You can order your free credit report by visiting www.annualcreditreport.com or calling 1-877-322-8228.
Monitoring your credit report regularly will ensure that you can clear up any incorrect information and prevent identity theft. It is recommended that consumers review their credit reports at least once a year. Being that consumers are now eligible to receive three free credit reports a year, you can actually keep track of your credit report year round by ordering one report at a time every four months. If you are ordering your credit report because you are going to make a large purchase-for example a house or a car-and you want to know where your credit stands, then it is recommended to order all three reports and compare them at least three months before you intend to apply for the loan. Each credit report might contain slightly different information so your credit score could vary by as much 100 points from one report to the next. If you are simply monitoring your credit report to prevent identity theft and other fraudulent activities, then ordering one at a time may be enough.
Reviewing your report
Once you receive your credit report, set aside some time to review it carefully. Eighty percent of credit reports contain errors, and a quarter of those are serious-late payments that do not belong to you, debt that is not yours, or accounts that you did not open. If you do not take the time to correct these mistakes, they can seriously affect your ability to acquire favorable credit terms in the future.
There are four main categories you need to review in your credit report: personal information, account history, public records and credit inquiries.
1. Personal Information
Information contained:
- Full name
- Social security number
- Date of birth
- Current and previous addresses
- Current and previous employers.
Check this information closely and make sure that it is all correct. Common mistakes occur among family members with similar names who reside in the same address. Variations of your name are ok as long as you have previously applied for credit using the variations. Incorrect information can result in another person's accounts reported on your credit report.
2. Account History
Information contained:
- Home loans
- Auto loans
- Student loans
- Personal loans
- Credit cards
Pay close attention to the account numbers, statuses, balances, and payment statuses. Make sure all accounts listed are actually yours.
3. Public Records
Information contained:
- Bankruptcies
- Tax liens
- Lawsuit debts
- Collections
- Other civil and financial judgments
Make sure all of this information is correct and updated. You should realize that certain bankruptcies and other negative information can remain on your credit report for up to 7 years.
4. Credit Inquiries
Information contained:
- Who requested to view your credit report
There are two types of inquiries that you will see on your credit report. Hard inquiries are those that you initiated when you requested your credit report or authorized a lender or credit card company to view your credit report. Soft inquiries are those made by credit card companies that send you pre-approved promotions for their credit card. Soft inquiries are only visible to you. A lender cannot see them when they review your credit report. There is much speculation as to how much inquiries affect your credit score. Soft inquiries do not affect your credit score at all. According to Fair Isaac Corporation, each hard inquiry can subtract no more than five points from a person's score. Often no points are subtracted. Since it is normal for a consumer to shop around for interest rates when applying for a home or car loan, multiple auto or mortgage inquiries in any 14-day period are counted as just one inquiry.
The subject matter contained in our educational publications is for informational purposes only. We suggest that you consult your financial or other advisors when planning for your specific needs or requirements.
MORE RESOURCES:
 Washington Times | US Consumer Credit Increases $14.3 Billion in June (Update2) Bloomberg - Consumer credit rose by $14.3 billion, the most since November, to $2.59 trillion, the Federal Reserve said today in Washington. In May, credit rose by $8.1 ... US June consumer credit rises by $14.3 bln, 6.7 pct annual growth rate Consumers jack up borrowing in June Ahead of the Bell: Consumer Credit |
 China Daily | US Government charges 11 in massive credit card fraud case Heise Online, Germany - The US government has charged 11 people with stealing tens of millions of credit and debit card details as part of an operation that targeted numerous ... Video: Feds Charge 11 in Massive Retail Hacking Case 11 charged over US credit card theft Biggest Ever Credit Card Scam In US |
Credit Suisse Sued Over Auction-Rate Securities (Update3) Bloomberg - 7 (Bloomberg) -- Credit Suisse Group, Switzerland's second-biggest bank, was sued by Swiss semiconductor company STMicroelectronics NV for allegedly placing ... STMicro sues Credit Suisse over auction-rate debt |
 CNET News | Credit cards: US authorities charge 11 in global identity theft racket guardian.co.uk, UK - American authorities have uncovered a global computer hacking and credit card fraud ring spanning the US, eastern Europe and Asia, officials said. ... Gang charged for theft of 41 million credit card numbers 11 charged in connection with credit card fraud 41 Million credit and debit card numbers stolen |
 Washington Post | Here comes the credit crackdown Independent, UK - One year into the credit crisis, regulators are hard at work on new laws they hope will prevent history repeating itself. Leading investment banks fear a ... Industry group to address credit risk Panel Calls for New Risk Standards Banking Group Proposes Wide Range of Reforms |
 Telegraph.co.uk | Barclays' Profits Hit by Credit Crunch BusinessWeek - by Kerry Capell The credit crunch continues to take its toll on British banks. On Aug. 7, Barclays (BCS) revealed its first-half pretax profits fell by ... Barclays: credit and credibility Income at Barclays declines less than analysts expected Barclays Profit Falls 34% on Securities Writedowns (Update2) |
Consumer credit jumps at fastest rate in 7 months MarketWatch - Consumer credit, excluding mortgage debt, expanded at a 6.7% annual rate in June after rising at a 3.8% pace in May. It was the biggest increase since the ... Credit-card Companies Making It Harder To Say 'charge It' CreditCards.com: Weekly Credit Card Rate Report Reform credit card industry |
 Earthtimes (press release) | Consumer credit rose $14.33 bln in June Reuters - WASHINGTON (Reuters) - US consumer credit expanded at the fastest rate in seven months in June as Americans turned to credit cards and consumer loans to ... Consumer credit rose $14.33 billion in June |
BC-based Lake View Credit Union Selects Open Solutions' Core Platform MarketWatch - Lake View Credit Union has assets of more than $200CDN million and serves 15500 members through three branches. This year, the credit union celebrated its ... |
Bridge Finance Group Provides a $4.0 Million Revolving Line of ... MarketWatch - CHICAGO, Aug 07, 2008 /PRNewswire via COMTEX/ -- Bridge Finance Group announced the completion of a revolving line of credit to Access Distribution, ... |
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