Resourceful-Mom

Your past, is it true?

Depends on what they say about me

Your credit report is used by many financial institutions to determine if, according to your history of paying others, they can trust you to pay them back according to the terms agreed upon.

Since a credit report is used to tell the story of your financial past, it’s your responsibility to monitor what is being said about you.  Below are items that could potentially be on your report, in no particular order:

• Current/Former address information
• Current Name and AKAs
• Social Security Number
• Collections
• Judgments
• Bankruptcy
• Credit cards
• Home Equity Line of Credit
• Line of Credit
• Personal loans
• Auto loans
• Inquiries

Based on the information contained in your credit report, a credit score is created. A higher credit score signifies to creditors that you are less of a risk, so as a reward, they offer you a lower your interest rate. With a lower interest rate, you will have to pay less in monthly payments.

On the flip side, if your credit score is low, creditors perceive that you are more of a risk as you do not pay your bills in a timely manner. As a result, your interest rate and your monthly payments are higher. So all in all, a good credit score can save you money! Before going shopping, see your CREDIT SCORE in Seconds – $0. I’m sure you have a general idea what your credit history contains but it is always a good idea to know for sure.

Well that’s true, but that part isn’t

Sometimes, there’s incorrect information on your report.   If you notice inaccuracies, you will need to contact all 3 credit reporting agencies (Equifax, Experian and TransUnion) to have them initiate an investigation. Normally, before discussing your credit report with you, credit reporting agencies require that you have a recent report in front of you.

You are the only one that can get this information corrected and it is your responsibility to make sure that it remains correct.  The information contained may actually be better than you thought.