Knowing what to check on your credit report can help you spot identity theft, helps you ensure your creditors and lenders are reporting accurate information. Checking your credit score is also ideal for taking inventory of your credit card and loan accounts.
What To Check On Your Credit Report
Incorrect Information
Your Address & Employer
Even though your employer and address do not have a direct effect on your credit score (even if they’re incomplete or inaccurate), the lender or credit card issuer could use this information to make a decision about the application.
Verify the Account History Listed for Your Accounts
Your credit report contains detailed payment status for the past 24 months for each account. It also contains a status that states whether your account is current or if it has ever been late. Ensure your payment history is correct because it has the most significant impact on your credit score.
Confirm That All Your Open Accounts Are Reported as Open
This should be done especially if there’s a balance. If there’s a balance on your account and it’s reported as closed, your credit score will be affected. On the other hand, closed accounts that are reported as open won’t hurt your credit score.
Check for negative information outside the credit reporting time limit
Make sure you check for negative information outside the credit reporting time limit.
Some delinquencies, like late credit card payments and debt collections, are only listed for seven years, with an exception to bankruptcy, which can be listed for up to 10 years. Negative information that exceeds the credit reporting time limit can be disputed from your credit report.
Confirm All Debts Discharged in Bankruptcy Are Listed That Way
Ensure, that these debts aren’t simply listed as delinquent or unpaid.
An Inventory of Your Accounts
Sum up your debt owed by adding up the account balance on all your accounts. Some versions include your total outstanding debt in a summary information section of your credit report. Based on when you ordered your credit report, the amounts owed on your accounts may not include your latest payments. This will give you a fair knowledge of how much debt you owe and when compared to your income, you can figure out if you have too much debt. Taking inventory of your outstanding accounts also helps you get started on a get-out-of-debt plan.
Signs of Identity Theft
Check Your Credit Report for Accounts That Are Not Yours
Go through each of the account listed on your credit report to be certain they belong to you (or the ones that used to). If you spot accounts that you do not remember, highlight them, and use the credit report dispute process to have them removed from your credit report.
Review Inquiries Section to Ensure the Businesses Listed Are Businesses You Applied for Credit With
Other inquiries could indicate an identity thief trying to open accounts in your name. Take note, also that some inquiries could appear form businesses that have checked your credit report to pre-approve you for credit cards or insurance. Fear not, as these “soft inquiries” do not affect your credit score an are typically labeled, not viewable by anyone but you. It is that simple. Hope this was great?
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