Reviewing Your Credit Report When You Are About To Apply For Any Form Of Credit Is A Virtual RequirementBy FinanceGuru • Dec 20th, 2008 • Category: Personal Finance
If you are about to apply for a loan, mortgage, credit card or any other form of credit, then you might have sensibly decided that it is time to get a free credit report. With credit so difficult to come by at present, this certainly is a good and welcome move and could potentially avert the disaster of being turned down in error.
But do you know how to check credit reports online and realise it is very easy and free? If you have been refused an application for credit then the first step is to write to the credit reference agency that they used asking for a copy of your report. Then check the report and ensure any errors corrected.
It is more recommended to do the check before applying for the credit ? close the stable door before the horse bolts! Credit reference agencies allow you to check your report online and there are many systems about that will give you regular updates as things change on your credit file. Usually there is a free trial, or so much of the information is free, followed by a paid membership or payments for extra functions.
If you want to check you report in advance of taking out credit, then the free trials are usually enough. Quite quickly you can have access to your credit information and see the data that the lenders will be looking at as part of their decision process. Some reports will even give you an approximate indication of your credit status.
On top of the report, the potential lender will also use your income, which the credit report will not include. This means that it is only an approximation, but it will show you any nasty surprises, such as payments that you forgot you had missed last year.
Once you have viewed and checked your credit file, you might have found slight errors in the report. In this case you have to write to the lender that provided the incorrect information and ask them to amend their records. Once they have done this, they will then update your credit report.
It is also possible that there are searches recorded on your credit report you are not aware of. These are recorded each time a potential lender views your report in order to decide whether to lend you money. If any of these are not familiar to you, it is worth checking them out. If there are many of these, or for high sums of money, then be very careful with your checking as it can be a sign of identity theft.
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