January 16th, 2011 
Mordechai Welt asked:
Checking your credit reports periodically is sound financial advice. It ensures the information within is accurate and helps you maintain a good credit rating. To appreciate the importance of regularly checking your credit reports, one first needs to understand what a credit report is and how its content can help or hinder your financial standing.
A credit-report is a window into your financial and personal life. It contains information about how you pay your bills, where you live, whether you have ever been arrested or sued and if you have ever filed for bankruptcy. Who would be interested in that information?
Well, creditors, insurers and employers for starters. If you’ve ever applied for credit to purchase a car or rent a home, chances are good your credit report is being reviewed.
If you want to buy insurance or are seeking a job, the people interviewing you are very interested in that information as well.
It allows them to know whether or not you are a “good risk” and guides their decision in determining whether or not to grant you that loan or hire you into their firm. That is why credit reporting companies will sell the information in your credit report to businesses, credit agencies and insurance firms who may use it to evaluate your application.
Financial consultants and consumer advocates emphasize the importance of checking your credit reports periodically.
This is for three main reasons:
1. Obtaining a loan. The information within your credit report will determine whether or not you are granted the loan and if so, how much you will have to pay to borrow money. Remember, money costs money.
It’s sad fact of life that people with poor credit ratings, who represent a higher risk for the bank, have to pay a higher interest rate.
2. To make sure the information within is timely, accurate, and complete.
This allows the process of seeking loans, making large purchases, or applying for a job, to flow smoothly without problems.
3. To protect you from identity theft. Identity theft happens when someone uses your personal information – be it your name, your Social Security number, or your credit card number – to commit fraud.
Identity thieves have been known to use your personal information to open a new credit card account in your name.
It’s not until you discover you have unpaid bills and a delinquent account that you realize you’ve been victimized.
Inaccurate information like that could affect your chances of getting credit, insurance, or even a job.
That’s why checking your credit-reports periodically is so important.
The three nationwide credit-reporting companies – Equifax, Experian, and TransUnion are required by law to provide you with a free copy of your credit report, at your request, once every 12 months.
Take advantage of your rights by calling 1-877-322-8228 and requesting your free annual report. You may also visit their website “annualcreditreport.com”, and request it as well.
Beverly
Checking your credit reports periodically is sound financial advice. It ensures the information within is accurate and helps you maintain a good credit rating. To appreciate the importance of regularly checking your credit reports, one first needs to understand what a credit report is and how its content can help or hinder your financial standing.
A credit-report is a window into your financial and personal life. It contains information about how you pay your bills, where you live, whether you have ever been arrested or sued and if you have ever filed for bankruptcy. Who would be interested in that information?
Well, creditors, insurers and employers for starters. If you’ve ever applied for credit to purchase a car or rent a home, chances are good your credit report is being reviewed.
If you want to buy insurance or are seeking a job, the people interviewing you are very interested in that information as well.
It allows them to know whether or not you are a “good risk” and guides their decision in determining whether or not to grant you that loan or hire you into their firm. That is why credit reporting companies will sell the information in your credit report to businesses, credit agencies and insurance firms who may use it to evaluate your application.
Financial consultants and consumer advocates emphasize the importance of checking your credit reports periodically.
This is for three main reasons:
1. Obtaining a loan. The information within your credit report will determine whether or not you are granted the loan and if so, how much you will have to pay to borrow money. Remember, money costs money.
It’s sad fact of life that people with poor credit ratings, who represent a higher risk for the bank, have to pay a higher interest rate.
2. To make sure the information within is timely, accurate, and complete.
This allows the process of seeking loans, making large purchases, or applying for a job, to flow smoothly without problems.
3. To protect you from identity theft. Identity theft happens when someone uses your personal information – be it your name, your Social Security number, or your credit card number – to commit fraud.
Identity thieves have been known to use your personal information to open a new credit card account in your name.
It’s not until you discover you have unpaid bills and a delinquent account that you realize you’ve been victimized.
Inaccurate information like that could affect your chances of getting credit, insurance, or even a job.
That’s why checking your credit-reports periodically is so important.
The three nationwide credit-reporting companies – Equifax, Experian, and TransUnion are required by law to provide you with a free copy of your credit report, at your request, once every 12 months.
Take advantage of your rights by calling 1-877-322-8228 and requesting your free annual report. You may also visit their website “annualcreditreport.com”, and request it as well.
Beverly
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