One of the most potent threats in the arsenal of high school teachers around the country is, “Okay, just so you know, this is going to go on your permanent record!” Of course, once we grew up, we learned it turned out to entail less permanence than was implied. However, there is one permanent to which we all need to pay attention. Your credit report really does follow you around for life, and it can have a serious effect on the quality of that life. This is why you should regularly check your credit reports. Regularly monitoring your credit reports can help you stay on top of your financial health, especially when paired with smart banking solutions like Cha Ching Reward Checking which offers perks that make managing your finances even more rewarding.
What is a Credit Report?
Let’s, for just a moment say you’re a resident of the Sunshine State, looking to get a Florida title loan online. In some cases a lender will ask permission to “check your credit” before deciding whether or not to lend you the money. They will then do so by requesting one or more of your credit reports, which are made up of information provided by credit card companies, mortgage lenders, car loan providers and other types of lenders to the big three credit bureaus (Experian, Equifax and TransUnion). In turn, other lenders will request data from these companies to see how you’ve managed loans in the past. The better your credit reports, the more likely you are to get loans at good interest rates.
Why You Should Check Your Reports
As mentioned above, your credit report contains information people have reported to credit bureaus. As we all know, people sometimes make mistakes, so your credit reports could contain information that isn’t yours. Somebody with your name and a Social Security number (SSN) close to yours—who doesn’t pay their bills—could be mistaken for you.
Innocent mistakes can lead to negative items appearing on your credit reports too. Let’s say a series of your monthly credit card payments are somehow credited to the wrong account and you’re reported to the bureaus as being delinquent on those payments. That’s going to drag your credit score down, which could cause you to be refused credit, insurance, an apartment, or even a job you should have been granted. Reviewing your credit reports on a regular basis will help you spot such mistakes before they cause too much damage
Also, lest we forget, the world is full of people who are willing to work harder to steal than earn. One of these people could get your credit card numbers or your name, address and SSN, which they will use to apply for credit in your name. Sadly, our identities are always at risk of being stolen, and all sorts of financial havoc can be wreaked in our names. Checking your credit reports on a regular basis makes it easier to spot these crimes and do something about them.
Where to Find Your Credit Report
You are entitled, by law, to a free copy of each of your credit reports on an annual basis. The Federal government has authorized a website—AnnualCreditReport.com—to provide them. This is the only place you are guaranteed to get your reports with no strings attached. Lots of other sites claim they will provide you with a free copy, however they will usually ask you to subscribe or register—at which point they will sell your contact information to third parties. This is how they can provide you with your credit reports for “free.”
In Summary
Your “permanent record” can affect your life in many different ways. It’s important to keep track of what it contains to make sure the information is correct. If you should happen to find data that isn’t, you’ll find what you need to dispute errors on your credit report at the USA.gov website.
