The Importance of Checking Credit Report Annually
Consumers today must understand the importance of checking their credit report at a minimum of once a year. The amount of inaccurate data that is reported in a credit report has a drastic impact of the quality of a consumer’s credit score. The three major reporting agencies, Transunion, Experian and Equifax usually have similar information within the body of their reports, but do not compare data. This is a very crucial point, because one agency might report a judgment that does not exist while the other agency does not report a judgment. This includes inactive collection accounts over seven years along with credit accounts that are currently inactive.
Technology and the Credit Report
The information era makes the process of checking a credit report easy and safe. Consumers are able to access their report through the internet via online credit reporting agencies. This means consumers can quickly find out if there is incorrect data within the body of their report. They can file disputes for inaccurate data within a matter of seconds and are quickly given the results of their dispute. However, the information era opens the door for fraud and identity theft. Hackers are able to obtain very sensitive information regarding individual consumers, and they will open lines of credit in the names of their victims. This alone is enough reason to check credit reports at a minimum of once a year.
How to Check a Credit Report
The three credit reporting agencies are required to allow consumers to check their credit reports once a year for free. They may mail the agency and request a three file merged report, or they can visit the website of one of the agencies and request the report directly. The three in one report is the most accurate report available, and provides consumers with a true snapshot of their creditworthiness. They also provide other services, such as credit monitoring, in case suspicious activity is reflected within the report.
Check the Report Twice a Year
Experts in the field of credit monitoring suggest all consumers check their reports twice a year. This allows the consumer to immediately spot any inaccuracies or possible fraudulent activity. If fraudulent activity is not dealt with swiftly, it will have a dramatic impact on the consumer’s ability to obtain a loan. Now, companies are checking the credit scores of potential employees, and they base hiring decisions on a candidate’s ability to handle their own finances. The information used to make this determination is through the potential employee’s credit report. This is why anyone should check their report at a minimum of once a year, and preferably twice a year through one of the major reporting agencies.
