Is Your Credit Score Accurate?
Do you have an accurate credit report?
Keeping an accurate credit report should be one of your first financial responsibilities. A credit report is something that should be checked at least on a yearly basis. It becomes incredibly important because you never know when there will be a discrepancy in your reports. The most common problem that people face with their credit report is identity theft. When you’re ordering your credit report, always make sure that you order data from all three major credit reporting bureaus.
The biggest reason that you need to get separate copies of your credit reports is that each agency gives a different report. Each and every creditor has their own way of reporting. This could also mean that some creditors might report to just one agency, while others report to all three credit bureaus. There are also creditors that will report to all three agencies depending on what type of debt you have. History is usually shared across all three agencies when you have taken credit like a mortgage.
The first question that comes to mind when you’re checking your credit score is, “What to do if there is a mistake?” on your credit report. Mistakes usually result in your FICO score or credit score being calculated at a much lower rate than it actually should have been. The next question is what can you do to correct a mistake on your credit report. If a mistake goes unchecked and your credit score is lower than where it should have been, you’ll end up paying a much higher interest rates on new accounts like any new mortgages and loans than you would if your credit report was error free.
More often than not, you can correct a mistake on your credit report easily online by filling out a short form at the bureaus website. You should dispute a mistake on your credit report right away as soon as you notice it, no matter how small it might appear to be. Remember the saying “A stitch in time saves nine?”. For some kind of errors, you cannot fill out a form and you will have to write to the credit reporting bureau to request them to fix a mistake and make your credit report accurate.
It is up to you to be vigilant and check your credit report more often than not. Since credit bureaus often take up a lax responsibility when it comes to correctly reporting information on a credit report you need to take it upon yourself to make sure that the information on your report is correct. Being vigilant in making sure that you have no errors and your credit report each year if not more frequently will help to make sure that you have an error free credit report which will help keep your credit score accurate.
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