subject: Checking Your Credit Score [print this page] There are several facts to remember when checking your credit score. Your credit score can be your best friend or your worst enemy. A good credit score is favorable over a bad one, any day. Many people don't realize how important their credit score is until; they apply for credit or decide to make a major purchase. When you go and apply for a loan or even a credit card your credit report is pulled. This helps the creditor determines how much credit you should be extended. A good credit rating can open up lots of opportunities.
Banks are generous at giving out loans to customers with good to excellent credit. It is important that everyone check their credit report periodically. There are several reasons why this should be done. First of all, credit bureaus are known to make mistakes. Wrong entries have put on consumers credit report by accident. There are so many people with the same name and similar social security number. There is always the possible of a typo. Anyone can accidentally type a 2 instead of a 3 and so forth. Wise consumers pay a small fee for credit monitoring.
Credit monitoring alerts the consumer when there is a change in their credit report. When new information has post credit monitoring checks for inaccuracies and possible fraud. With identity theft on the rise at an alarming rate, it's not uncommon for anyone to find a discrepancy on their credit report. Erroneous and outdated information can harm a person good name and cause a business to go under. Potential lenders or creditors are not looking at the mistake that someone else made on your report; instead they are looking at what they see in front of them. People with high credit scores are usually rewarded with high credit limits and low financing fees.
The government has a program in place that allows consumers access to all three of their reports, from all three credit reporting agencies. This is a courtesy extended to individuals to help them combat identity theft. Inaccurate information cannot be corrected if you are not checking your credit score. By not checking your credit score you are putting yourself at risk for being an open prey to criminals. Individuals who steal other people credit are hoping that the individual is a person who does not check their credit report. That in itself is an open invitation for thefts to come in and destroy the credit you have worked so hard to maintain.
If you are a victim of identity theft you can contact the three major credit bureaus and request information on how you can correct the information in your file. They have a process that must be completed before they can remove or change any information listed in your credit report. You can also contact the creditors listed on your report and provide the necessary proof that you are not responsible for the bills that are posted on your account. Some creditors are easy to work with and may actually help you to correct the situation without much hassle.
