To make sure your financial life is on track, check your credit report on a regular basis. You may think, “but what am I looking for?” You are not alone – a lot of the information can be confusing.
Here are the basics of what is on your credit report and what you should be looking for.
What is in a Credit Report?
Many of the details within a credit report can seem a bit overwhelming. Here is what you will find:
You will see personal details, including your name, phone number, address, and the like. Additionally, you will see your payment history, money borrowed, authorized user accounts, all financial records, collections issued on you, recorded credit inquiries, and statements you have requested.
Phew!
Sounds like a lot, but it’s all pretty basic. It covers all of your financial footprints in one place. It’s important to make sure all of your information is correct and up-to-date. You will also want to note your available credit.
Why Available Credit Matters
Your debt-to-credit ratio is a very important number that can negatively impact your credit score. Many people do not realize that their debt-to-credit ratio can impact their score even if they are making consistent, timely payment.
This number comes from comparing how your available credit (money you are allowed to spend) with your debt (money spent but not paid back). For example, if you have a $7,000 credit limit yet keep your balance at $6,500, it looks like your spending is out of control. If your balance stays closer to $2,000, you are proving responsible borrowing habits. The latter will reflect better on your credit score.
After Checking Your Report
If you find mistakes on the report, fix them as soon as you can. Why? Because that credit score will control what you can and cannot do financially, and the score doesn’t care if it is based on mistakes or facts – and neither do banks.
If you notice a mistake, gather as much evidence as possible to disprove the mistake. Then, contact the reporting agency immediately. If the mistake is from a credit card company or bank, gather the evidence and contact them right away. The longer the mistake is on your report, the worse your score is affected.
If the mistakes are your own “spending” and “paying” habits, you’ll need to correct those by getting your finances in order.
Contact our Credit Repair Specialists ASAP
If you are trying to buy a car, house, or anything that costs more than what you have in your bank account, keep up on your credit report. If you don’t want to worry about it, hire a professional company to track and report back to you.
We will ensure you are notified any time there is a change. Furthermore, we can help you stay on the right track to get your credit in shape. Call us today if you could use help!