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Free Annual Credit Report - 3 Reasons to Get One
Managing your credit history is a very important part of creating wealth in your lifetime. Some it is according to your money and credit correctly. Another part though is when it gets reported too.
Every person in america includes a credit rating. For many people it is blank. They don't have a record yet of methods they handle history. For many people it might fill a large amount of encyclopedias. The question becomes is the credit history accurate?
The US government necessitates the major credit agencies use a copy of the credit rating free of charge annually. That's the reason you will often hear people talk about the free annual credit history.
It isn't the same as your credit score though. It is important to understand that your credit score continues to be tough to determine as each company calculates them differently.
The three major credit bureaus are Experian, Equifax and Transunion. Think of them as giant record keepers. They get reports from credit card companies, auto loans, home loans, and other areas. Its not all company reports to any or all three. Many will only report your information to one or a couple of them.
You will find three main reasons to obtain a copy of the free annual credit history. We will discuss all of them in greater detail below.
Inaccuracies Identify Theft Forgotten Credit Lines
Inaccuracies can riddle your credit report. The systems involved with collecting this information is not perfect. It's very possible that information is reported to the company incorrectly. For example your credit card company can report that you'd a card be placed into collections. It may happen from an employee mistyping information right into a software program.
It is also possible that someone else's credit is being sent beneath 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, they were very confused by her credit rating. They lived in various states, had different jobs, and various financial histories. The credit bureaus had mixed them up in places.
It took a while to get everything corrected so she could purchase her home. Obtaining a copy will help you to find these errors quickly and get them corrected.
Identify Theft is really a growing issue in the world. Getting a copy of the credit history can allow you to find out if someone has stolen your personal information. The credit bureaus will show any credit that's opened in your name. By checking it regularly you are able to prevent this. You can also request they put a freeze in your credit. Jetski from anyone from opening credit inside your name. Just be sure you take it off when you get prepared to make an application 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 lines of credit going swimming. I found a few store charge cards on my small report that I had completely forgotten about. I had gotten them after i was much younger and establishing my credit.
I kept the loan lines but requested they be frozen. I didn't wish to remove them as they would impact my credit score. I also didn't wish to leave them laying around in case someone got the data and started with them.
