What Do Credit Reports Mean To You?
Sep 12th, 2008 | By Michael Geoffrey | Category: FinancesSome people find themselves with a messy financial situation and therefore credit reports are not a pleasant topic. However, credit reports provide you with the facts. And even if the information is undesirable it can be like a helpful guide on your road to financial recovery. Being well informed is important and necessary information can be found in your credit report.
Those reports are maintained - at least in the U.S. - chiefly by the three major credit reporting agencies: Equifax (PO Box 740241, Atlanta, GA 30374; www.equifax.com), Experian (PO Box 2002, Allen TX 75013, www.experian.com) and TransUnion (PO Box 2000, Chester, PA 19022; www.transunion.com).
These reports show your personal information such as your social security number, current and previous addresses and phone numbers. It also gives a history of any debt you have had over a number of years. If you have made any late payments it records these and states how late the payments were in 30 day increments.
Your credit report can be requested by almost all lending institutions, banks, mortgage lenders and credit card companies. Other entities and individuals can request your report in connection with legal proceedings. The credit agencies are committed to giving an accurate report. However, despite their best efforts errors do occur.
Errors are sometimes made in recording payments made to bring a past due balance current. At times your credit report will list loans as active or credit cards as open that you have closed out or paid off some time ago. There are many different computer systems operating out there that may not always transmit information one to another accurately or in a timely manner. That leads to reporting errors.
To be sure that your credit report has accurate information you must regularly review copies of the reports produced by the three reporting agencies. If you notice an error in your report send a letter to the agency explaining the error and include proof that it is in fact an error and ask the agency to make a correction in their database.
Everyone can receive one free copy of their credit report each year. You can request your credit report on line or by phone. If requesting your credit report via the internet you can visit annualcreditreport.com
Knowing your current credit status can help you game plan for your financial future. A knowledge of your credit history can be instrumental in helping you set goals to eliminate your debt and avoid unnecessary debt in the future.
Review your history and note any current overdue amounts. Clear those up first, as quickly as possible. One method is to pay off any smaller outstanding amounts first. That frees up funds to be used on the next larger outstanding amount. Working your way up, you will eventually begin to see light at the end of the tunnel.