Why Should You Check Your Credit Report

When applying for credit card applications or loan applications

, getting an approval generally depends on the status of your credit report.

Some borrowers rush-in into submitting applications to lenders only to find that they have been rejected because of unsatisfactory credit score. If you've been denied credit, you can avail of your credit report for free. Though, you don't have to pass the time to get rejected before checking on your credit. Whatever type of loan or account you're planning on obtaining, financial experts advice that it would greatly help if you can check your credit report at least six months before submitting your application to your lenders.

Credit Check

Why should you review your own credit report? First of all, it is not a rare case where inaccuracy, misinformation, or fraud has affected a person's credit report. Many people have been victims of account fraud, identity theft or erroneous details on their credit report which caused them denial from prospective creditors. Even worse, most people have found out too late that their identity has been stolen solely because creditors have started calling them for past-due charges made on their account without their knowledge.

Aside from checking on the payments and other figures, don't forget to check on your personal details as well. Make sure that your name is spelled properly. Make sure that your SSN, your account number, your birthday and the dates are not jumbled. If you find any detail in your credit report that is false, immediately notify the three major credit bureaus as well as your creditors. Clearly, personally checking your credit report at least once a year is your best protection against possible inaccuracy or fraud.

Credit fix

So let's say that your credit report is correct and no fraud has been done. But what if the problem is that you have unpaid bills or you have had missed some payments in the past? Naturally, poor payment habits will result to a low or very low credit score. Which is exactly why you should obtain your credit report six months prior to your application. It will give you enough time to take actions to at least improve your credit score.

Of course, you would need to settle your unpaid balances with your creditors. It is also necessary that you will be keeping up with your expenses frequently to all your lenders. File your taxes properly and pay on time. If you're paying for child support, make sure you can keep it up. You can't afford to make another late payment for the next six months if you want to see some improvement on your credit score.

A Good Credit Report is Worth It

Taking care of their credit report is everyone's responsibility. An outstanding credit report indicates an outstanding credit score. It will not only guarantee easy approval on all your financial endeavors, it will also give you the privilege to receive better rates and offers from your lenders. More importantly, a good credit report gives you peace of mind and it's certainly something you should be proud of.

Copyright (c) 2010 Suzy Vanstrusen

by: Suzy Vanstrusen

POST COMMENT

What are the consumer credit laws in Australia? Second Mortgages Versus Adjustable Rate Mortgage Credit Lines The pros and cons of an equity line of credit (HELOC) As an equity line of credit to meet your dreams Bad Credit? How do you Know? Mega M , credit card processing Credit cards The other options people have besides using credit Free Credit Report For Optimum Use Credit Debt Help - The Easiest Way To Eliminate Your Credit Card Debt No Credit Check Unsecured Loans - No Placing Of Security Required Unsecured Personal Loans - Risk Free Credits For You Credit Debt Consolidation - Combat High Interest Rates on Credit Cards Through Debt Consolidation