‘So how’s your credit?’, I asked a pretty young lady at the hotel bar.
She said, ‘I’m not really sure but I know it sucks.’
I said, ‘Oh really? So… what’s your credit score?’
She looked at me with a blank stare.
Then I asked, ‘Do you even know your credit score?’
She said, ‘No, but it’s probably a 2.’
Most people do not know what is on their credit report, but it’s important for everyone to know what their credit report says about them, as a consumer, for reasons other than credit repair.
For example, NOT KNOWING what is on your personal credit report may lead you to believe something about your personal credit which may or may not be true, such as believing that you have a lower credit score than you actually do, or vice versa.
Also, by requesting and reviewing your credit report, you may discover unauthorized activity, making you a victim of identity theft. This could lead to someone, other than you, to ‘apply for’ and ‘receive’ fraudulent loans and/or credit cards in your name.
YOU MUST KNOW, that if you are a victim of identity theft and you wait too long to file a report, you may be held responsible for all debit-card-charges. The sooner you identify the unauthorized activity the faster you can take action to limit any further damage to your personal credit and lowering your credit score, not to mention the potential time and money lost.
By requesting your credit report you can make sure that all of your personal information is accurate and up-to-date, such as the correct spelling of your name, your address, city and zip code, and your place of employment.
Now here comes the real cheesecake. You want to identify your creditors and make certain that your creditors are actually YOUR creditors, and that your creditors are REPORTING ALL OF YOUR PAYMENTS ACCURATELY.
Here’s a good one, and it happens a lot, you want to make sure that all reported accounts on your credit report actually belong to YOU and not to an ex-spouse or an ex-boyfriend/ex-girlfriend who decided to open an account in your name because they ‘just love you so much’.
The reality is that people can be a bit weaselly, so it is critical that you guard and protect your personal information by keeping it private and out of the hands of family and friends, and definitely away from boyfriends and girlfriends.
If you are ‘legitimately’ and ‘legally’ married, YOU and YOUR SPOUSE should BOTH be open, honest, and aware of each others finances, even if both of you agree that ‘the other’ is in charge of all financial decisions, BOTH SPOUSES SHOULD BE FULLY AWARE of what is happening with the money and with the credit.
If you believe that there may be some issues with your credit, requesting your credit report(s) AT LEAST SIX (6) MONTHS BEFORE YOU APPLY FOR CREDIT, and reviewing your credit report(s), allows you the opportunity to address any errors and/or inaccuracies.
KNOWING Your Personal Financial Position gives you the best chance at getting approved for an auto loan, mortgage loan, credit card, or whatever credit you may need, and approved at the lowest available interest rate, saving you hundreds, and even thousands, of dollars.
OK… let’s move on to actually requesting Your FREE Credit Report and doing some meaningful work.