Top 5 Reasons To Check Your Credit Report Regularly

#1 Make sure mistakes aren't hurting your credit.

Reviewing your credit report can help you avoid costly errors. In one recent study, more than 50% of the credit reports checked contained errors. Other studies have shown similar results with as high as a 70% error rate. The most common error occurs when the information of another person, with a similar name or account number, is recorded in your credit profile.

#2 Track your history of payments.

Potential lenders want to see a history of timely payments before they'll consider offering you a loan or credit. Check your report to see that your payments are being reported accurately to the credit reporting agency (CRA). A history of late payments will result in higher interest rates being charged or having your credit application or a loan denied. Late payments will also lower your FICO score.

#3 Protect against potential identity theft.

Identity theft has become the fastest growing crime in our nation. Identity theft complaints jumped 75% from last year according to a recent Federal Trade Commission report. The monetary loss from identity theft crimes skyrocketed to a combined $53 billion in 2002! Accounts that appear on your credit report that weren't opened by you could be a sign of identity theft. Report any such occurrences to all three major credit bureaus immediately and have them place a fraud alert on your account. The three bureaus can be reached at:

Equifax 800-997-2493 www.equifax.com

TransUnion 800-888-4213 www.transunion.com

Experian 888-397-3742 www.experian.com

#4 Keep your inquiries to a minimum.

Make sure all of the listed inquiries were authorized. If there are unauthorized inquiries, write to the credit bureau and to the company that made the inquiry informing them that you did not authorize the inquiry and to remove it from your credit file. Potential creditors can regard too many inquiries within a short period of time (30-60 days) as a negative and can result in the refusal to extend further credit.

#5 Stay on top of your credit without hurting your credit score.

A credit score, also called a FICO score, is a numerical grade given to each consumer . Your grade or score is an analysis of your credit risk based on your credit history. Credit scores range from 300 to 900, and those with scores in the range of 640 to 700 are considered excellent credit risks. Those with FICO scores below 500 are considered to have the highest risk of defaulting on a loan and therefore most lenders won't even consider them. Consumers with higher credit scores receive the best rates and terms on credit and loans.

© 2004

Author: James H. Dimmitt
jimdim815@aol.com

James is editor of "To Your Credit" a FREE weekly newsletter to help you manage your personal finances. You can subscribe to his newsletter and also get a FREE copy of your credit report when you visit: http://www.yourfreecreditreportnow.com

---

Bad Credit? No Credit? Yeah, Its a Problem.

Many companies use the slogan "Bad Credit? No Credit? No... Read More

Pitfalls of the Credit Industry

The credit industry if rife with pitfalls. If you have... Read More

Have You Checked Your Permanent Record Lately?

As a young student I feared getting bad grades because... Read More

Credit Report ? How to Improve Your Credit Score

One of the great mysteries of life is how the... Read More

7 Compelling Reasons Why A Prepaid Debit Card May Be Just The Financial Tool You Need

Prepaid debit cards are great financial tools and may be... Read More

Credit Cards -- What You Should Know

There are a lot of questions about using credit cards.... Read More

Credit Report ? How Your Credit Score is Determined

Most consumers are aware that they have something known as... Read More

Preventing Credit Card Mess

Credit card debts problem is extremely common today. It is... Read More

Choosing The Credit Card That Is Right For You

Credit cards represent an important part of our financial lives.... Read More

New Law Provides Free Annual Credit Report

As of Thursday, December 1, 2004, one-third of Americans will... Read More

What Should I Do If I?ve Become a Victim of Identity Theft?

Identity thieves take advantage of everyday opportunities to discover your... Read More

How To Start A Second SEPERATE Credit File!

Your personal credit file is separated from those with the... Read More

Credit Card Entrapment - The Secrets are Out

Have you ever wondered why your credit card bill is... Read More

Making Sense of Credit Card Fees

In addition to the APR (annual percentage rate) and the... Read More

Guide to Credit Terms

Listed below is a useful guide to credit card terms.... Read More

Bailiffs & Council Tax - Knowing What To Do

This article is about bailiffs who may call trying to... Read More

How to Improve Your Credit Rating

So you got into debt, had problems but you got... Read More

Consolidating Credit Cards

Credit card consolidation is a popular solution for those with... Read More

Harassment of People in Debt by Creditors

HarassmentHarassment of people in debt by creditors or their agents... Read More

Is Your Credit Score Costing You Money?

Most of us want a good credit report to obtain... Read More

Good Credit Is Not A Good Reason To Borrow More Money After Youve Achieved Financial Freedom

The most important thing for you to remember is that... Read More

How Do I Establish A Good Line of Credit?

A line of credit, roughly defined, is the amount of... Read More

Identity Theft ? Monitor Your Credit Report

The recent security breach at credit card processor CardSystems Solutions... Read More

Credit Repair Scams

"Erase Bad Debt !""Remove Negative Items From Your Credit Report"You've... Read More

Building A Credit Report Lenders Will Love You For

Will lenders really love you for having a good credit... Read More

Credit cards

If gold medals were awarded for marketing consistency, the credit... Read More

Why Should You Use Credit Cards

Believe it or not, the way society, especially the commercial... Read More

Tackling Bad Credit

The first time I heard the term credit history was... Read More

Student Credit Cards 101

If you're a college student, you probably already have a... Read More

What is the Check 21 Act?

Check 21 is the common name for the Check Clearing... Read More

Big Brother Knows Whats in Your Credit Report - How About You?

Whether you are aware of it or not, credit bureaus... Read More

10 Step Credit Repair Guide

The process of clearing credit can be laborious and frustrating,... Read More

Various Types of Credit Cards - Part 2

Several different types of credit cards offer several different options,... Read More