The majority of people are not aware of what's going on with their credit report until it's time to make a major purchase such as a house or automobile. Some people are very surprised at the incorrect or fraudulent activity they find on their bureaus that can cost them higher interest rates, or worse, not to qualify for a loan. Here's some tips to avoid identity fraud and maintain the highest credit rating possible:
Check your credit at least once a year. The bureaus provide free credit reports annually so you can monitor activity and check for inaccuracies.
Place a fraud alert on all 3 credit reporting agencies. Potential creditors you do business with MUST contact you by telephone before opening any loans or credit lines in your name.
Shred pre-approved credit card offers you receive in the mail so they do not fall into the hands of identity thieves.
Take mail to a post office box that contains sensitive items such as checks and creditor information that could be stolen from your mailbox.
Do NOT give your social security number to anyone on the telephone. There are numerous scams with imposter's posing as IRS agents and jury duty coordinators who attempt to steal your identity with threatening tactics.
When it comes to preserving your credit rating it's always better to be proactive rather than reactive any day!!!
11 Comments on Reasons To Check Your Credit Score
Good advice! Did you know that 79% of all credit reports contain errors? 1 in 4 is so inaccurate that the consumer can be denied credit. Never underestimate the cluelessness of the credit bureaus. I deal with them daily.
Great Stats Russ yes it is frightening, my credit score went up 50 points just by confirming closed accounts. This could be where all the buyers are, they just do not know they qualify??
So many have no idea! The consumers pay the price. But so do mortgage companies. If 8 out of 10 reports are approved are denied based on faulty information how many more loans could close if each of these consumers took your advice before applying and addressed it? You'd probably close a lot more deals..
Credit Score = Financial Reliability Index. When I realized that a Credit Score has the same function for adults that grades do for children, I decided to check mine out. Sure enough, there was inaccurate info, outdated info, and even surprising info. It took six months to work through all the details, but the improvement in my credit score was worth it. And when we realize the info is used by creditors, banks, landlords, insurance companies, etc., we'll be fierce about protecting our credit reputation. Check out Decoding your Credit Report for my slant on this topic. I appreciate your reminder about protecting our SSN; the social security number is the key to our identity with today's number-driven recordkeeping.
My advice to everyone... buy a locking mailbox! I know several people who have been the victims of identity theft where the thief got their personal info from bank statements, credit card bills and other personal mail stolen from their mailbox! I was shocked when I saw how between the mail thefts and the internet these criminals had managed to compile such extensive information on the victims including their social security #'s, bank account #'s and mother's maiden names.
Remember... it's cheaper and easier to prevent the theft than deal with the after effects!
How's Douglasville these days? I lived in Villa Rica over 20 yrs ago... that area has done some major changing!
Great post. One point everyone should consider, getting your credit score online from the credit bureaus can give a generic indication of your credit worthiness, however that score will not be the same score a creditor will pull. Depending on the purpose of the credit inquiry (mortgage, auto loan, credit card, etc) each creditor uses a specific scoring model which places more weight on certain credit items that would indicate the ability or willingness to repay the type of credit they are considering to offer.
Personally, I recommend AnnualCreditReport.com. It's free, but no scores. Again, the scores you get online are relative and meaningless. However, clean credit, without errors and low balances on credit cards will typically gets scores up high!
You are entitled to a free credit report from each of the three credit bureaus once a year on www.annualcreditreport.com. You should, at minimum, check all three each year because some creditors don't report to all three, and since they are 3 separate companies, each one may have a different set of mistakes on it.
As the credit report becomes more and more important in our daily lives, it's imperative that we check it out annually for mistakes and other mayhem. Its impact is still much ignored, unfortunately, and correcting problems delays major purchases.
Paul Renton ABR e-Pro & Terri Schrews
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Good advice! Did you know that 79% of all credit reports contain errors? 1 in 4 is so inaccurate that the consumer can be denied credit. Never underestimate the cluelessness of the credit bureaus. I deal with them daily.