Check Your Credit Report Annually for the Good and Bad

Kendra Sonjer

Reviewing and reading your credit report may be the
 furthest thing from you mind, but it may be one of the most
 important financial actions you can take. Because Your
 credit report can directly affect your ability to rent an
 apartment, apply for a mortgage, or even get a new job.
 
 Since everyone from your bank to your landlord can peak at
 your credit report, shouldn't you have a look too? By
 reading your credit report annually, you will be able to
 correct any mistakes and assess whether you need to make
 financial improvements.
 
 Your credit report is a treasure trove for your potential
 lenders. It shows who you borrowed from and how much, how
 you handled bill payments and any arrears. It can include
 utility and cable bills along with your credit card balance
 and mortgage. It paints a financial picture, describing
 your credit life in detail.
 
 There are three major credit-reporting companies in the
 United States.  These are Equifax, Trans Union (both also
 in Canada), and Experian.  If you are planning to analyze
 your credit report, you should get a copy from all three
 companies.  You never know who is going to request a report
 from which company.
 
 Since details can vary in the reports, it's wise to get one
 from each of the bureaus. The bureaus' websites provide the
 reports for a small fee. But Experian offers all three
 reports for a price that's less than buying them
 separately.
 
 Each company's report will have four sections that cover
 identifying information, credit history, public records and
 inquiries. Look over each section carefully to ensure that
 you are being reported on accurately.
 
 Identifying information is simply information used to
 determine your identity.  This would include current and
 previous address, full name (married and maiden), social
 security or social insurance number, phone numbers,
 employer's name, and spouse's name.  Some of the
 information may be wrong, such as the spelling of your
 name.  Don't fret; this isn't unusual as information can
 sometimes be sent with mistakes.
 
 The credit history section will list all the accounts from
 all of your creditors. Loans, credit cards, current account
 status, payment histories -- it will all be there. Some
 reports use codes for for such things as payment habits,
 while others use plain language.
 
 The public records section lists any financial information
 such as bankruptcies.  If you find errors in this section,
 be sure to contact the credit bureaus immediately to remedy
 the situation.
 
 The inquiries section lists all requests for a credit
 report. Having a lot of requests isn't necessarily a bad
 thing, unless the number and frequency make it appear you
 are trying to borrow everywhere you can think of.
 
 If you find mistakes, let the bureau know and back up your
 correction with any documentation you have from past loans.
 You will likely get a response within a month.
 
 Restoring good credit may take time, depending on the
 seriousness of the situation. But the sooner you know your
 status, the sooner you can take action to help yourself.
 Whether correcting mistakes or charting a new course in
 borrowing and paying, it's all up to you.

Author Kendra Sonjer contributes to YY Credit, the credit information
resource. Get the free Credit newsletter at
http://www.yycredit.com .

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