The more you want to be able to have in life like nice cars and homes, the more important personal credit becomes in being able to have those items and a great deal more. Unfortunately, many people don’t understand personal credit and the impact it has on many aspects of their life and how it can influence the way that they can live after some time. Personal credit is all based on an individual’s credit report, which contains a great deal of information like buying and payment habits. All of the financial information about a person’s personal credit history is contained on their credit report.
It is important to know what is on your personal credit report even before looking to make any kind of purchase or apply for any type of credit. A good credit report can give you a great deal of purchasing power while a less than acceptable personal credit report can have a great deal of influence on how much interest you may end up paying or if you can even get credit or be allowed financing at all. While you may think that you have excellent credit, it pays to check and find out if there are any errors or discrepancies that can be fixed before attempting to get financing on any purchase.
More than a Cursory Review
You should check your personal credit report at least once a year by examining reports from each of the three major credit bureaus, which are Experian, Equifax and Trans Union. Many times you can view your reports for under $10.00 or even for free. In fact, if you are checking your report because you have been turned down for credit by a lender, you can view your credit report for free within 60 days of that decision.
When viewing your personal credit report, you should look at all of the information as a potential creditor would see it. Make sure that if you pay all of your bills on time, the report accurately displays this information. If your debt is near your credit limit, this is not looked on favorably. Your credit rating is especially important if you don’t have an extensive personal credit history yet. If you apply for a lot of credit during a short period of time, this is factored in your personal credit report and can have a damaging impact on approval or interest rates.
If you happen to find a discrepancy on your personal credit report, make sure that all of the information that is listed really belongs to you and that the balances are current and correct. If you find that a credit report still lists old loans that have been satisfied, contact the credit bureau and request that it be adjusted. Keep in mind that information including bankruptcies and collection agency referrals are kept on personal credit reports for between seven and ten years. If you find any errors on your personal credit report, the credit bureau is required to investigate the incorrect entry and adjust it accordingly.