Three In One Credit Report
To Keep Things In Order, Check Your Credit Report
Check your credit reports to keep things in order
Knowing what’s on your report can make a huge difference
The commercials tell you to be sure and get your free credit report – but they don’t tell you how to decipher it.
A regular review of your credit report is important to maintaining a solid credit rating and guarding against identity theft. A credit report will typically contain inquiries, collections, public records, personal identity information, a credit summary and account information. The three credit reporting agencies – Equifax, Trans-Union and Experian – collect information to show whether or not you’re a good credit risk.
But keeping an eye on just one credit report won’t help you much. It’s a good idea to review all three agencies’ reports at least once a year. Especially, if you plan on applying for and unsecured loan such as personal loan or a business loan.
It is required by Federal law that each of the three bureaus provide you with a free copy of your report each year. Once you’ve obtained yours, check the personal information to be sure it’s correct. Be sure that someone else’s information isn’t mixed in with yours.
The credit summary includes the type of credit, the name of creditors and the amount of the highest balance on each account. It also shows whether the account is open or closed. Creditors look at how you’ve made payments on the account. A large amount of past due flags with knock your debt-to-equity ration out of line and slam your credit rating.
The section on public records will include bankruptcies, liens and judgments. For 7 to 10 years, this information will remain on your credit report.
In addition, your credit report will show every inquiry that’s been made into your credit history.
Your credit score is based on your payment history, outstanding debt, length of time you’ve had credit, types of credit you have and the number of inquiries.
Don’t forget that checking your credit report will not damage your credit score. But not checking it could.
TrueCredit’s 3-Bureau Credit Monitoring – Review #3