Why You Need To Review Your Credit Report Regularly
Checking your credit report often can help you to avoid big losses. If you find any errors in your report, you can dispute them and have them set right. Incorrect information can reduce your credit score and make it harder for you to qualify for a loan with competitive rates and terms.
If you apply for a mortgage loan or car loan, the interest rate will depend on your credit score. This can make a huge difference to the amount of interest you will have to pay. If you have a low credit score, focus on improving it before you apply for a big loan of this type.
Want to get a credit card? Get free, no-obligation quotes from the leading credit card issuers now.
Look for mistakes in your credit score report
You may find that your report mentions payments that you have already made. The creditor may not have reported this to the credit bureaus. You can dispute the incorrect information and have it rectified. You may also find that your report includes information relating to others. This could be due to mistaken identity or identity theft.
It is important to keep track of such errors because they can impact your finances. Incorrect information could remain on your credit record for a long time, making it much harder for you to qualify for loans. You will have to pay much more interest than necessary even though you pay all your bills on time.
Dispute mistakes and have them set right
If you find any incorrect information in your annual credit report, you can contact the credit bureaus and dispute it. You can also approach the creditor who reported incorrect information or did not update your records. For example, if a loan that you have already repaid shows up in your report, you can approach the creditor and ask for the correct information to be reported to the credit bureaus.
This can result in a major improvement in your credit score. You can approach the Consumer Financial Protection Bureau (CFPB) if you are not able to get the mistake corrected.
How to build your credit score
You can improve your credit score by using about a third of your available credit limit. Try to clear your entire balance every month. Pay your credit card bills promptly and do not miss any payment. This will help you to improve your credit history and you will be able to qualify for higher limits and new credit cards with competitive rates and terms.
Credit cards have high interest rates, so carrying large balances for a long time can be costly and it can impact your credit score. Avoid using your card to pay for everyday expenses or to fulfill long-term requirements. If you carry high credit balances for long periods and often miss out on payments, it may be best to seek advice from a reputable financial counselor.
Want to get a new credit card? Get free, no-obligation quotes from the leading credit card companies now.