Credit Reports and How to Use Them to Your Advantage
By Daily Dosh | November 19, 2007
Credit reports are treated with dread, particularly if you happen to have hit some money problems. The good thing is that credit reports are there to help you. It provides you with a stepping stone to restoring your financial health. When dealing with money matters it is essential to equip yourself with the best information you can.
Those reports are maintained - at least in the U.S. - mainly by the three major credit reporting agencies: Equifax (PO Box 740241, Atlanta, GA 30374; www.equifax.com), Experian (PO Box 2002, Allen TX 75013, www.experian.com) and TransUnion (PO Box 2000, Chester, PA 19022; www.transunion.com).
These reports contain multiple years of you financial history including, home loans, car loans and credit cards. Any late payments are reported here along with how late they were. On your report you will also find current and past addresses along with phone number and social security number.
It is the same info that is available to banks and mortgage lenders however the problem is that sometime errors can occur.
Loans that have long been paid off may be listed as active. They may also list credit cards you cancelled or thought you cancelled. Ideally these records would be accurate but sometime human errors can occur.
You may be blissfully unaware of what errors are on your reports so the only way to sort these errors out is by requesting copies from each of the three agencies. When you find an error, look through your records for proof, then send your proof to the agency requesting them to update their details.
Also, because of the increased popularity in online social networks, scammers are using the information found on these sites to steal your identity. By requesting a credit report you’ll be able to identify any unusual behaviour.
Because of legislation, a free copy can be obtained per year. You can make a request by filling out a form online or by phone. One way is to go to: annualcreditreport.com.
Luckily having this information gives you the ability to create a debt-free plan for your future. It does nobody any good to stick your head in the sand and hope that nothing bad will happen.