3 Things You Should Check in Your Credit Report

You wouldn’t believe us if we tell you that a 3-digit number can determine the course of your life. Well, it’s pretty much true, whether you’re buying a new house, new car or getting a student loan – any of these largely depend on your credit score. That’s why keeping good track of your credit report can make your life much easier.

Companies request your credit report every time you apply for credit of any sort in order to determine if you are creditworthy or not. Current or potential employers, government agencies, and any business with a legitimate reason can also access it. If you’re buying a new car, you can be sure that your credit history will affect your financing rates.

Credit reports are not free of mistakes so it’s essential to check your report on a regular basis to fix inaccurate information. These inaccuracies can cost you dearly by raising your interest rates or even result in credit denial. The best way to do it is to get a copy of your credit report once a year from each one of the credit bureaus: Equifax, Experian and Transunion. There are also online services that will obtain all three for you.

The actual document is a mess of numbers that include your past and present credit transactions, legal standing on financial matters, payment record, bank accounts and personal information. Based on all of these numbers, the credit bureaus also assign you a credit score, a final tally that predicts how creditworthy you are. To make sure your credit score is an accurate reflection of your ability to borrow and repay money, there are 3 very important items you need to look at:

1. Credit History – Make sure the amount on your loans and delinquency (if any) are accurate. Too many loans put pressure on your line of credit and you’ll be eligible for less money.


2. Public Records – Favorable information stays on your record indefinitely. Negative information should be deleted after 7 years – 10 if a bankruptcy is involved. If old information affects your score, request an immediate update.


3. Account History – Make sure payment records are correct. Remember that late payments lower your credit score. Credit cards are interpreted as potential debt, so keep them to a minimum.

If all the information is accurate but there’s something you’d like to explain, space is provided for a short statement that can be attached to your credit report. You may also get credit counseling to help improve your credit report.

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