Did you know that over 70 percent of all credit reports in the United States contain errors? Your lender for a new home, credit card, or car finance will be looking at your credit report and making important decisions based on the information that is contained within – decisions that could make a big difference in the bottom-line interest rate you will receive.
Because lenders use complicated scoring formulas to determine how much you can borrow and at what rate it would be a good idea for you to check your credit report for any inaccuracies. Make sure you obtain a report that gives you information from all three major credit bureaus, as each may be different.
What may seem minor to you might not to a lender. Contact the credit bureaus to correct any mistakes. This could result in substantial savings on the cost of your loan.
I’ve personally had mistakes found on my reports. Lucky for me is was with only one of the three bureaus, but boy was it a hassle to clean up. It took several weeks and numerous hours of effort to make the whole thing disappear.
Did you know that you are eligible to receive a copy of your credit report for free every 12 months. This was made a requirement in years past. Do not be a victim of fraud, the official site to receive your free credit report from all three agencies (experian, equifax, and transunion) is annualcreditreport.com. You will be asked several questions to confirm your identity and you will then receive your free report online immediately. Save it to your computer for your records or print it out. Note: This will not produce your “credit score” - there is still a fee if you wish to obtain this information. However, you will be able to look at all credit history in your name, from there you can probably make a fair estimation of what your score will look like. Keep in mind that creditors like to see a history (at least two years) of steady and consistent patterns be it residential addresses, credit card holders, etc.
Don’t forget to check your credit report once every 12 months for your own safety.