Lately I’ve been writing a lot about the importance of your credit score. All kinds of things impact your credit score, such as the way you use credit cards and the amount of debt you have.
But you can’t work on building your credit score unless you know what’s on your credit report. Credit reports list how many accounts you have (both open and closed). That includes mortgages, car payments, and student loans along with credit cards. They can show negative marks for as long as seven years, so if you’ve had a bankruptcy or foreclosure or skipped payments within that time frame, those will show up.
Another reason to look at your credit report regularly is not just to check up on your own financial habits, but to make sure nobody has stolen your identity and used it to open accounts under your name.
Finally, up to 23% of consumers report finding an inaccuracy on their report — whether it’s because of identity theft, or just because of an error somewhere in the system. You won’t know about whether you’re one of them unless you look at your report.
Luckily, since 2003 the Fair Credit Reporting Act has required that consumers get access to one free credit report per year from each of the three major credit bureaus (Experian, TransUnion, and Equifax.)
It is really easy to get these reports. Most people reading this will just want to go to annualcreditreport.com. You provide your name, social security number, address, and date of birth, and answer a couple of identifying questions. Then you choose which credit report you want to receive, and it appears instantly.
However, you can also call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
Don’t pay attention to the many, many websites offering you access to your credit report for a fee! You do not need to deal with them and should never pay for access to your credit report.
By the way, if you’ve already seen your free credit reports for the year, there are other circumstances under which you can get new ones. If you’re denied an application for credit, insurance, or employment because of your credit, and you ask for a report within 60 days of receiving notice, you can ask for another free report. You can also get more than one free report if you’re unemployed and job-hunting; if you’re on welfare; or if your first report was inaccurate because of identity theft or other forms of fraud.
One last tip: if you go to annualcreditreport.com, you can choose whether to get your free reports from the three bureaus all at once, or just to get one. Many people set a reminder on their calendar and get one free report every few months. This allows you to constantly check up on your credit report, for free, throughout the year.
Do you check your credit regularly? Ever found any inaccuracies on your credit report?
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Thanks for the reminder. I used to do this annually but forget the last or so. It’s definitely important to make sure everything is correct. I did find an inaccuracy…apparently some guy my same last name and similar first name…”Andy” instead of “Andrew. For whatever reason, some of his credit history was on mine. Luckily it wasn’t anything negative but I made sure to get that corrected. I also sent “Andy” a letter to let him know as it had his address listed someone, but I never heard from him.
This is interesting to read as an Australian, even if the places to get the report aren’t relevant to us. I hadn’t thought about making sure it’s correct – that’s a good idea. I wonder what ours would show..
Tristan
A few years ago, I discovered an unpaid utility bill that went to collections by checking my credit report. It was from college, and I moved out, forgot the water bill was in my name, and never had the mail forwarded. Luckily it didn’t harm my score too much and I paid it in full, but I would not have realized without checking my report.
Great tips! I like to spread mine out so I can monitor throughout the year since I had an issue with identity theft a few years back.