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Free Annual Credit Report - 3 Reasons to obtain One
Managing your credit report is an extremely important part of making money in your lifetime. A good bit of it's based on your money and credit correctly. The other part though is when it gets reported too.
Everyone in the US has a credit history. For many people it's blank. They don't possess a record yet of how they handle history. For many people it could fill a large amount of encyclopedias. The question becomes is the credit history accurate?
The federal government requires the major credit agencies to provide a copy of your credit history for free once a year. That is why you will sometimes hear people discuss the free annual credit history.
It's not the same as your credit score though. It is important to understand that your credit rating is still difficult to determine as each company calculates them differently.
The three major credit bureaus are Experian, Equifax and Transunion. Think about them as giant record keepers. They get reports from credit card companies, automotive loans, mortgage loans, along with other areas. Its not all company reports to any or all three. Some will only report your information to 1 or two of them.
You will find three main reasons to get a copy of your free annual credit report. We will discuss all of them in greater detail below.
Inaccuracies Identify Theft Forgotten Lines of credit
Inaccuracies can riddle your credit report. The systems involved in collecting this post is not perfect. It's very entirely possible that details are reported towards the company incorrectly. For example your credit card company can report that you had a card go into collections. It may happen from a worker mistyping information into a software program.
It's also possible that another person's credit is being sent under your identity. I've got a friend whose name is equivalent to her sister in law. They share first and last names but have different middle names. When she went to obtain a loan on a home, these were very confused by her credit history. They lived in different states, had different jobs, and different financial histories. The credit bureaus had mixed them up in places.
It took some time to get everything corrected so she could purchase her home. Obtaining a copy will allow you to find these errors quickly and get them corrected.
Identify Theft is a growing issue in the world. Obtaining a copy of the credit history can allow you to find out if a person has stolen your personal information. The loan bureaus will show any credit that's opened inside your name. By checking it on a regular basis you are able to prevent this. You may also request that they put a freeze in your credit. Jetski from anyone from opening credit in your name. Just remember to remove it when you get ready to apply for credit.
Forgotten credit lines may not appear to be a big deal however they could be. It is not a good idea to have credit lines floating around. I found a few store credit cards on my report that I'd completely ignored. I had gotten them when I was much younger and establishing my credit.
I kept the credit lines but requested they be frozen. I didn't want to remove them as they would impact my credit score. I additionally didn't want to leave them scattered about in case someone got the data and started using them.
