While there is indeed a need to overhaul a majority of our financial institutions and the credit industry is still struggling to rise back, consumers nevertheless have the responsibility to obtain a copy and monitor their credit report on a regular basis.
Why do we need to monitor our credit report regularly?
First, our credit report states our financial health or status on record. Banks, loan agencies, various government agencies, and your employer can easily obtain a copy of your credit report and use it as a basis for any transaction. Even apartment landlords would even check this report and can make this a basis for accepting or rejecting you as a tenant.
Your credit report, in a sense, bespeaks of your financial credibility.
Second, your credit report is not absolute. Meaning, it could be prone from errors. If you are monitoring it on regularly, you can easily detect these errors and have them rectified immediately. Hence, you will not be surprised, in case of a negative score, if you were denied of a particular loan. More so, in cases of negative score, you will have a basis to work on an improvement of your credit rating.
Lastly, identity theft is commonplace. With more than half of our purchases and other transactions being done online, scrupulous and malicious individuals can easily intercept the data you sent, especially personal information. Thus, in most cases, errors that are reflected in your credit report may be attributed to identity theft.
Federal laws dictate that you have a right to obtain a copy of your credit report once a year free. Not only that, you can always check for a free credit report online. Better safe than sorry, as they say. So, check your credit report regularly.
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Credit Scores and Reports
2 comments:
Thanks for sharing. It is useful for me.
I guess it is important to look ahead on your credit reports.. Financial matters should be on top of the list..