Have You Checked Your Permanent Record Lately?

As a young student I feared getting bad grades because I didn't want any bad marks on my "permanent record." Get an "F" in fifth-grade science and it goes in your record. Act up in Mrs. Brown's class? Yep, it's in your record too. Get caught using a swear word and it's not only in your permanent record but it goes right at the top! When you go to a parochial school like I did, you come to believe that there really is some mysterious file that follows you for the rest of your life.

Want to know a secret? There really IS a permanent file that follows you through life, but it has nothing to do with grammar school grades or activities. The real "permanent record" you need to be concerned about as an adult is your credit record! You should check your credit record on a regular basis, especially if you are planning on making a major purchase such as a car or home.

Your credit report or credit profile is a record of your credit activities. It lists your credit card accounts and loans, your account balances, and whether or not you make your payments on time. Your credit report is used by potential lenders to evaluate your creditworthiness. Credit reports have also been used by insurance companies to determine what rates you will pay for your insurance policies.

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.

A more serious problem occurs when someone gains access to your personal information and commits 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.

For a thorough review of your credit profile, you need to check with all three major credit reporting agencies (CRA's) : Equifax, Experian, and TransUnion. Information can vary between the three CRA's and it's important to make sure each has accurate and up-to-date information regarding your credit history.

Once you have your credit report, start by checking the accuracy of your personal information: your name, your social security number, address(es), etc.

Next , examine the accounts listed in your credit history. This section lists your accounts with creditors and your payment history with them. It is important to read this entire section and make sure the information is complete and has been reported correctly. Report any errors immediately to the credit reporting agency for investigation and correction.

Finally, check the number and frequency of credit inquiries to your file. Make sure that all the inquiries were authorized by you. Potential creditors who see a high number of inquiries in a short period of time may consider you a high risk and deny you credit.

Make it a habit to check your credit report annually. Doing so can save you time, money and future credit problems down the line.

About The Author: James H. Dimmitt

© 2004, http://www.yourfreecreditreportnow.com

Get your FREE credit report online now and subscribe to our FREE weekly newsletter "TO YOUR CREDIT". jimdim815@aol.com

---

What is Credit Counselling?

Ever wondered what is Credit Counselling? There are occasions when... Read More

Credit Report Secrets: Do You Know What They Reveal?

If you've ever applied for a credit card or loan,... Read More

Credit Report ? How to Improve Your Credit Score

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

Convenience Can Be Costly

You've just opened your credit card bill and attached to... Read More

Credit Card Is Adding The Silver Lining To Your Pocket

In the new millennium plastic money or credit cards has... Read More

Do You Know The Top Five Credit Card Mistakes?

When you're dealing with credit cards, you're playing with fire.... Read More

Credit Problems? Heres How to Manage Your Creditors

If you find that creditors are calling you almost daily... Read More

It Takes Credit To Build Credit

Using a credit card wisely is an important step in... Read More

Small Business Credit Cards

So what do you look for when applying for a... Read More

Simple Identity Theft Protection

How many of you bank, shop, or transact other business... Read More

Tips for Credit Card Surfers

Moving money from credit card to credit card to take... Read More

Do You Want to Get a New Credit Card at a Great Rate?

1) Do your homework. Applying for and getting approved for... Read More

Credit Counseling Basics

Credit counseling is an option you might want to consider... Read More

Is Your Credit Score Being Held Against You?

Credit Scores That HurtIs your credit score being held against... Read More

Discover the Parts of a Credit Report and What They Mean

So you ordered a copy of your credit report to... Read More

What You Need To Know About Credit Cards

What is a credit card? A credit card is... Read More

How to Dispute Credit Report Errors

Your credit report--a type of consumer report--contains information about where... Read More

What Is the Fair Credit Reporting Act and What You Should Know About It

The Fair Credit Reporting Act (FCRA) and the recent update... Read More

First Major Regulatory and Legislative Victory of 2005 for Creditors and Consumers

Under the Fair Debt Collection Practices Act, collectors are not... Read More

Dont Fall For A Scheme When Trying To Rebuild Your Credit History

For people with a spotty credit history or bad credit,... Read More

Building Business Credit

Most businesses want to be able to borrow money when... Read More

Credit Repair Kit Sound To Good To Be True? It Is.

A lot of people have bad credit. It is unfortunate... Read More

Choosing A New Credit Card

1. Choosing A new credit cardThere are many reasons for... Read More

Credit and Loan Help for Mortgage Loans

Mortgage loans are some of the most difficult loans to... Read More

Taking Control of Your Credit History

Your credit history is important; in fact, in this day... Read More

Credit Cards For People With Bad Credit Scores

Sometimes life lands you in a situation that causes your... Read More

Know Your Credit Card Rights

When you apply for a credit card, the application that... Read More

The Right Way To Credit Repair

If you have a bad credit rating, then you might... Read More

Cutting Credit Card Costs

What are the APRs charged by the credit cards in... Read More

Credit Cards - The Basics

How Lenders Operate ? And How They'll Make a Tidy... Read More

Credit Card Rates - Negotiating Rates with Your Credit Card Company

Ok, let's face it, everybody hates high credit card rates,... Read More

Improving Your Credit Report

Even if you think you have a wonderful credit report,... Read More

What is Credit Card and Debit Card Blocking?

Have you ever been told you were over your credit... Read More