Why Should You Check Your Credit Reports Often?

Part 8: As part of series of articles (blogs) regarding Credit and Credit Score, here we go:

There are many reasons that you should know what is in your credit reports and therefore, check your credit files often. The three top reasons are:

1.     Inaccuracies that should be corrected:

As we stated before, credit bureaus use their own employees or third party organizations to verify and obtain more information from public courthouse records, etc. Not all court houses have all their records online that could be exported to other documents or media for credit agencies. Therefore, this process requires manual work by people who spend a lot of hours and days researching mass amount of papers or a computer screen at court house. This increases the chances of creditors collecting inaccurate or obsolete information.

Also, other agencies, by mistake or by purpose, might have reported negative information to credit bureaus to be included in your file.

The Federal Trade Commission’s February 2013 report shows that as many as 26% of people have an error on their credit report.

You need to make sure the information in your credit files are all accurate. This is especially very important if you are considering making a major purchase, such as buying a car or home. As you will see later in this book, just having one bad credit or negative piece of information on your credit file could cost you thousands of dollars for the life of the loan you are going to get.

Correcting any inaccuracies may help you get a better interest rate from your lender.

2.     New addresses or unfamiliar accounts that may indicate fraud

3.     Inquiries of which you may be unaware

HOW to overcome the problems with your credit history and credit score?
Knowledge, education, awareness, practice and discipline are the essential keys to being successful on any subject. The book, "Credit Score Tips and Tricks", provides you information, tools, techniques to educate yourself and manage your credit report & credit score, and therefore manage your finances effectively at no additional cost.

I have decided to bring and share with you, chapters or sections of the book, Credit Score Tips and Tricks, as series of articles here. This is the number 8 of such a series.

I also created and manage a GROUP in ActiveRain, Credit Reports and Credit Scores, Please feel free to join and share your thoughts and experiences.

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