Warning. Why does every American need a free credit report?
Do you know how many identity thefts occurred in 2007 in the USA?
The total fraud amount in 2007 was 49 billion dollars. Do not be another statistic make sure you are protected and check your credit report monthly. This is the easiest way to avoid having your identity stolen.
Checking your free credit report is essential as it reflects not just your financial stability and status but your personality as well. A person with bad credit rating is often considered a financial risk to financial institutions and employers. A bad credit history is usually the reason why people fail in securing loans for a car, house credit card etc.
So, What Really is a Free Credit Report?
This report should reflect your financial stability and status. Loans, mail order agreements, credit card statements and other statements from banking facilities are reflected on this report. Moreover, this report also contains or keeps track of your missed or late payments, and payment status. Today, when applying for a loan, financial institutions or banks first check your credit report. This report is often used by these institutions to determine or weigh your financial capacity and credibility.
Why Is It Important?
Checking this report does not only help you correct possible mistakes or discrepancies. It is also the first step to repair or improve your report and prevent fraud. There are times when the financial institutions or banks from you made transactions with make mistakes. Thus, checking this report should help you to discover the misrepresented financial information so that you can highlight them to the responsible parties, and actions can be taken to rectify them.
Once you get your free credit report, you should verify whether the information in it is correct. If you fail to correct discrepancies or wrong information, the information reflected on the report will reflect in your credit history for money lenders to see. In this case, your chances of getting loans at lower interest rates are slim as people with poor credit rating are considered a financial risk.
If you have a bad rating, which can be attributed to factors like late payments, many companies can help you improve or repair your scores. Checking on this report is, then, the first step to improving your standing. Remember that uncorrected discrepancies can only lead to damage to your credibility and even worse.
Do not let a bad credit report ruin your chances in securing a loan for a house or a car, a rental application or even a job application.