In the financial world, your credit card report will tell a whole lot more about your private life than what you have probably thought of. Do not be one of the many credit card holders who overlook to check what is inside their credit report. Reading one’s own report may be a bore but do not think twice in doing so as checking on it is part of your responsibility in securing yourself and your identity.
A CR is a summary of all transactions made using the card including the owner’s buying behavior and other personal information such as your name, addresses, and social security number. The report also tracks public record information and data from banks and credit agencies including records of delinquent accounts, lawsuits, and even bankruptcies. Such vital information is gathered by the three credit bureaus namely – Equifax, Experian, and TransUnion.
Here are some reasons why you should check your CR.
Credit Score Credibility
A person’s credit history determines his credit risk score which is basically the measurement of a person’s creditworthiness based on a quantitative evaluation of the credit report. It is calculated based on different factors such as the type of credit used, credit transactions, payment, application of new credit, and outstanding debt. Scores vary from 375 to 900 with 650 being the average. As the three-digit becomes higher, your creditworthiness also increases.
A high credit score signifies that you will have less risk in borrowing money as you can borrow higher amounts at lower interest rates.
Information Security Tracker
Aside from your credit standing, it is very important to check the accuracy of the information in the credit report. According to a 2013 Federal Trade Commission Study, 20 percent of consumers detected mistakes on their records that could affect their score resulting in their paying higher interest rates. Other instances can be worst as red flags on transactions you are not aware of and requests of new credit applications you did not order. Thus, consistent checking can help identify unauthorized transactions.
Reports are easier to read if you know what to look at and how you will look at it.
A credit report has four sections consisting of personal information, credit history, public records, and queries.
Personal information is a record which identifies you. Double-check spellings and most importantly if the data is consistent with yours. Information found is your present and past addresses, your birth date, phone numbers, license numbers, the name of your spouse, and your employer.
Credit history contains the name of the creditor and the account number. Each unique accounts is called trade lines. The record will also show the kind of credit may it be a mortgage, a car loan, or a revolving loan. More so, do not miss checking the total amount of the loan as well as the high credit limit or highest balance stated on the card. One of the interesting comments under this section is the charge of which means that the creditor has made efforts to collect and eventually decided to write off.
The third section is the public records which means a problem on your side. If you are listed in this section it means that you have issues such as bankruptcies, judgments, and tax charges which can be a downfall to your credit record.
The last part is the inquiries section. It is a list that contains all the people who asked access to view your credit report. There are soft inquiries and hard inquiries. Soft inquiries are queries from companies that want to screen you before they make credit offers. Hard inquiries on the other hand are your personal queries during your credit card application.
Credit report free copies can be accessed and requested from either one or from all the three bureaus every year as legalized by federal law.
Protect Yourself By Monitoring Your Credit Report, Get Help When Needed:
Cambareri & Brenneck provides for a free consultation on your legal standing in regard to this topic. If you are in need of advice or representation on this matter, don’t hesitate to fill out the contact form here to be put in touch with the foremost experts on helping your credit standing and your financial freedom.
Source:
https://www.cnbc.com/2015/01/15/errors-and-red-flags-in-your-credit-report.html
http://www.investorguide.com/article/11581/overview-of-credit-reports-and-their-content-igu/
https://bettermoneyhabits.bankofamerica.com/en/credit/how-to-read-a-credit-report
https://www.bankrate.com/credit-cards/
