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Credit Report Companies: The Things That You Have To Know About These Companies
Whenever you apply for a new credit card or a new loan, you will see that the
lenders or creditors will request your credit report from the three major credit
reporting companies. So, just what is so important about your credit report?
Basically, you have to remember that lenders or creditors need to make sure that
you can be trusted when it comes to borrowing money.
The fact that there are quite a lot of people out there that are delinquent when
it comes to paying their bills, they have to make sure that you are not one of
them before they release funds in to your account or give you a new credit card
account.
Equifax, TransUnion and Experian are the three major credit reporting companies
out there that make and provide people's credit reports. However, you need to
remember that you alone are responsible for what your credit report will
contain. If you pay on time, then you will end up with a good credit report and
a high credit score and vice versa.
The credit report will contain everything from your first loan or credit card to
your present loan or credit card account. If you have been using your credit
card for quite some time now and you have made multiple loans from creditors or
lenders, then you can just imagine the amount of information that your credit
report can contain.
And, sometimes, credit report companies make a mistake with the reporting or the
filing of your credit information. This will result in inaccuracy of the report,
which can have an impact in your credit score. For example, if you have a loan
and you already paid off that loan, the report may contain that you still have
an outstanding balance from the lender or the creditor you borrowed the money
from. This error is quite common and there is a solution for you to get rid of
this error and clean your credit report.
Basically, you will be able to request your credit report for free every 12
months from the three credit report companies. For any other requests made
within the 12 month period, you need to pay a small amount of fee.
It is important for you to check your credit report for at least once a year.
However, it is advisable to do so at least once every six months. By doing so,
you will be able to see if there are any inaccurate data in your credit report
and also see if someone made a credit inquiry about you that you didn’t
authorize. Usually, this is the first sign of identity theft. If there is, then
you may want to contact the company who made the inquiry in order to ask them
why they did this.
If you have any disputes about your credit report, then you need to put it in
writing and send it to the credit report company that had the erroneous
information. You should also include a document that will serve as a proof that
the information or the data you found is indeed inaccurate.
Credit report companies are there to record your financial data. They are also
the ones responsible for determining your credit score based on the credit
report you have. As you can see, these companies are indeed very influential
when it comes to your credit history. However, you need to remember that it is
you who is responsible for maintaining a clean credit report as well as credit
score.
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