Getting a free online credit report is essential to managing your personal finances
. Many people often neglect to check their credit on a periodic basis which can prove to be costly if there are erroneous items on this report. Having good credit makes it easier to reach your financial goals. Here are three reason to get a free online credit report.
Check for False Information
False information can appear on your credit report due to no fault of your own. A creditor can mistakenly report false information. An emergency room bill that your insurance company didn't pay can negatively affect your credit score. All along, you thought this bill was paid but discover eight months later that this debt was reported to the credit bureau. This may sound crazy, but it happens. Identity thieves can use your personal information to buy new cars and stereo equipment that you will be responsible for paying. With a monitoring service, you can be alerted when new items hit your report and you can dispute charges within 30 days.
Save Money on Interest and Security Deposits
Unknowingly having poor credit can affect your ability to purchase automobiles and rent apartments. Nowadays, you can purchase a car with bad credit but at a hefty price. Subprime lenders will offer you a loan but you can expect to pay close to 20% interest and place a substantial down payment. The overall cost of the vehicle will cost more than if you had a conventional loan at 8%. Landlords want to be assured that the rent will be paid on time. Therefore they will check your credit history to see if you would be a good tenant. Getting a cell phone without a $500 dollar down payment will be more likely if you have a good history.
You Need a Job
Many employers are performing credit checks before extending offers to good candidates. It would be a shame to go through the interview process only to be denied a job offer because of your financial history. A free online credit report can show you where you stand if you are seeking a job in an industry that requires credit checks.