How to become an informed consumer of credit services
Your credit report can have a dramatic impact on your financial stability. With good credit, you can obtain benefits of all kinds -- a home mortgage or lease on an apartment, an auto loan, low-interest credit cards, and more -- with ease. But if your credit history is poor, many of these financial options may be unavailable to you. Either way, you have a right to know what to expect when a lender runs a credit check on you.
Along with demonstrating responsible credit behavior such as paying your bills regularly and on time, it's a good idea to regularly check the contents of your credit report so you know what your credit is saying about you when others check your credit.
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Studies have shown that many credit files contain inaccuracies that can harm your credit rating, leading to rejections when you apply for loans, insurance, even a job. Often the result of simple human error, they can be caused by anything from a clerical error to a computer glitch in which your file is mixed with that of someone with a similar name.
That's why it's essential that you check all of your credit files -- and monitor your credit regularly -- to protect your good credit standing, even if you always pay all your bills on time.
And if your credit is less than perfect now, checking your report will help you identify lingering problems so you can deal with them effectively and move toward improving your credit standing. Whatever your situation, reviewing your report regularly puts you in control of your credit so you can meet lenders knowing your credit accurately represents you.