When and why you should check your credit report

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When and why you should check your credit report
2 years ago
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A credit report is a vital document that everyone needs. It's the very first thing most lenders require when you apply for a loan. A poor credit history indicated in your credit report could mean outright disapproval of your loan request.

When Should You Check Your Credit Report?

Check your credit report even if you do not have immediate plans to apply for a loan. The truth is that you can never tell when you might need a loan. Obtaining a copy of your recent credit report will give you time to correct any erroneous entry in there. This way, you can work towards improving your credit rating by the time you file a loan application

If you are already thinking of securing a loan, check your credit report immediately. You should know that credit reports sometimes include errors or dated information. The earlier you spot any problem with your credit report, the earlier you can dispute them with the credit bureaus and your credit report will be more favorable. This increases your chances of approval. On the other hand, if your credit report does not look encouraging, you may want to delay your plans of getting a loan. The best thing for you to do is to take the necessary steps that will improve your credit score. Eventually, you can get that loan at better terms.

Where Can You Get Your Credit Report?

Unlike in the past, it is now easy to get your own credit report. In fact, you can get it directly from the three credit reporting agencies: Experian, Equifax and TransUnion. Or you can check the many online credit services that can secure your credit report for you for a fee.

There is nothing to prevent your from checking your credit report anytime you want. It is to your advantage to see first hand how your credit report looks like so you can undertake timely repair if it's needed. Besides, if you know that you have a good credit score, you can leverage on that to ask lenders for lower interest rates.

If you source your credit reports from online providers, you can make use of their resources to better understand the contents of your credit report. You will learn which items carry more weight and hence must be monitored closely. You can also find in their websites tips on how to correct the erroneous entries in your report.

Check Your Credit Report as a Precaution Against Identity Theft

Identity theft is fast becoming one of the leading crimes today. Unfortunately, you'll never know that you've been victimized until it's too late. It's very much possible that other people have appropriated your credit card facilities for their use. Or, they could have already borrowed from the bank using your name. One advantage of regularly checking your credit report is getting to know if there have been transactions made in your name before the situation gets worse.

Do remember that the responsibility of protecting your identity is yours alone. Therefore, it is necessary to check your credit report regularly. Report any irregularity such as credit purchases that you are not aware of. You need to dispute any and all incorrect entries in your report as soon as you become aware of them; otherwise, they could cause the likely disapproval of your loan application.

By Susan
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