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Ten Reasons to Check Your Credit Report

  1. Never seen your credit report in years?

    If you have never seen a copy of your credit report, you definitely should order one. The three national credit bureaus (Experian, FreeScoresUSA) do not communicate with each other, so you actually have three credit histories. It is up to you to make sure that your credit histories are accurate, so you should get all three of your credit reports.

  2. Credit mistakes do occur

    Do you know who has had access to your credit report information? Do you know if the information they saw is accurate? According to a study, almost 70 % of the credit reports have sme sort of errors of some kind and 29 percent had some serious errors like false delinquencies and judgments that don't belong to the consumer.

  3. You are applying for a credit card or car loan or home loan

    If you are considering applying for a car loan, home loan, or credit card, you will want to see your online credit report and make sure all that information is correct and occurate. Since each credit inquiry can count against your credit rating, make sure that your application isn't rejected based on mistakes in the credit report.

  4. Co-signed a car loan or home loan

    If you have co-signed a loan for a family member or friend, their payment record will also appear on your credit report. Make sure you know how your credit is affected.

  5. Home mortgage shopping

    Before you start shopping for a mortgage for a home loan or refinance, take a look at your credit report before the mortgage lenders do.

  6. Renting an apartment

    If you are going to be renting an apartment, especially in a competitive market, it is wise to have a recent copy of your credit report with you while apartment hunting. Most apartment owners or managers will want to check your credit report before offering you a lease.

  7. Divorce

    Your credit may be combined with your spouse, and there may be certain transactions that you may not be aware of. If you get a divorce, notify the three major credit-reporting agencies that your status has changed to "single." Provide them with new addresses for both you and your ex-spouse. Specify that all accounts should henceforth be reported separately. Otherwise, transactions may be reported on the wrong spouse's account. The records could get confused, especially if one of you were to remarry. Occasionally, one or both spouses may experience credit problems during the separation period preceding the final divorce, especially if marital assets are frozen during settlement negotiations. You will need a copy of your credit report to review with your attorney so that you can accurately evaluate how your divorce will affect you financially.

  8. Fraud monitoring

    Someone may be committing fraud by using your identity and applying for credit in your name. Credit reporting companies do not have to inform you of suspect items, so it's up to you to be vigilant about your credit. You should regularly check your credit report to make sure that all new inquiries and accounts are not fraudulent. Make sure all the information in the report is accurate and if you think you are a victim of fraud, contact your credit reporting agency and ask that they put a fraud alert on your file.

  9. Self-employed

    If you have your own business of any type, it is imperative that you regularly monitor your credit condition. The stronger your credit, the greater your ability to secure the financing you need to properly build and maintain your company.

  10. Financial Planning

    If you use a financial advisor, it is recommended that you check your credit report at least once a year and review it with him/her so your financial condition can be accurately assessed.

Copyright 2011.