Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Credit Misconceptions and other Credit Report topics.
Under the Fair Credit Report Act, an individual is entitled to a free credit report once a year. A person should pull his or her credit report at least once per quarter, if not monthly. However, ONE of those requests will be free. It is important to check your credit report at least once a year. Checking one's credit report can help to catch identity theft and other fraudulent practices against a person.
Reviewing a yearly credit report also allows an individual to see who is pulling his or her credit. There may be companies that pull a person's credit report prior to sending an offer for credit—this decreases that person's credit score.
Reviewing a yearly credit report also allows an individual to catch mistakes reported by his or her current creditors. If a creditor reports that a debtor was even one month late, his or her credit score will go down. This can be corrected if the individual was not late and can show documentation. When applying for a loan or mortgage, credit scores need to be as high as possible—the higher the credit score, the easier it is to get the credit needed, and the better the interest rates on that loan or mortgage
|Sheri Ann Richerson|