credit history check

The advantage of having a good credit is the ability to obtain approval for loans. Your credit history might also be checked when applying for a job or when you plan on renting a home or apartment. Without a good credit repayment history it is unlikely you will be approved for any financial transaction. Therefore it is vital to complete a credit history check to make sure your score is accurate.

Why Should I keep a Credit History Check?

You want to check your credit history annually to ensure accuracy. Studies have shown that 50 to 70% of the data on your reports is incorrect or out of date. These errors can result in a lower score and denial of a loan request. You also want to do a credit history check to ensure no one has stolen your identity.

What Should I Look For On My Report?

Once you get a copy of your credit report take a careful look at the personal information. You want to make sure your name is spelled correctly. Verify the current and previous addresses are correct and make sure the social security number is accurate and any other personal information. Make sure the public record information is accurate. Check for bad items such as bankruptcy, judgments, tax liens or foreclosures. Finally review all the credit repayment history. Make sure the account reporting is current. Check for any derogatory pays such as charge offs, settlements or collections.

Correcting Your Credit Report

Once you have completed your credit history check, it is important to report all inaccuracies to each credit bureau. Keep in mind that the three credit bureaus, Equifax, Experian and TransUnion will probably report accounts differently so be sure to examine each report carefully. When you find an error, be sure you can provide proof that the item is actually in error. Then follow the appropriate steps to have the error removed from your credit report. Each credit agency will have a different dispute process. Be sure to follow the procedures correctly.

Checking your credit report yearly is a vital means of preventing inaccurate reporting and identity theft. It is important to be diligent regarding your credit report as inaccurate information could lead to credit denials.

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