Conversations about credit often make people feel intimidated or confused. Here is some information to help you understand credit reports.
Your credit report contains:
Who maintains all of this data?
One or all of the three national credit bureaus:
Businesses can send credit data about you to one, two, or all three of the bureaus. The bureaus are the data receivers not validators. You should ensure the information is accurate at each bureau.
You may ask yourself, “since my credit report has so much information, how can I get a copy?” Glad you asked! You are entitled to a free credit report, every 12 months, from each of the three above credit bureaus. I encourage you to get a copy from each. Why? Oddly enough, one report may contain a line item that they other does not. I also encourage you to use the following strategy in getting your credit reports; get one from one of the three bureaus in January, in February get a copy from the next bureau and in March get a copy from the next bureau. Using this strategy will allow you to get all three reports, in three different months which maximizes how often you can see you credit history for free and not overwhelm you to thoroughly review each.
You can obtain your FREE credit report in one of three different ways:
You should check for things like:
You may ask yourself, “ What if something is incorrect on my credit report?”
Please note, if you get a dispute corrected with TransUnion, it will not correct the item on the Experian credit report. If the error is on another one of your credit reports, you will have to dispute it with that particular bureau.
Monitoring your reports regularly will also help you detect any identity theft.
Did you know that your credit report is reviewed:
Based on the information contained on your credit report, you are given a credit score. This score will determine if you are extended new credit, denied additional credit, credit limit reduced or extended credit at a higher interest rate.
Stay tuned for the next blog for more information on credit scores!
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