Take Advantage of Your Free Annual Credit Report
Did you know that you're entitled to one free copy of your annual credit report from the three credit reporting agencies? The agencies that are responsible for credit reporting include Experian, Trans Union and Equifax. When you take out a line of credit from a company, that company will report your debt to one of the three companies. Some companies report to more than one but very few report to more than one. That's why it's imperative, if you care about your credit, that you get your annual credit report from all three companies. That way, you can see where you stand credit wise, and you'll know what you owe and to whom.
Why Is It Important?
Why is getting your annual credit report important? It's important for several reasons. First of all, it will tell you how much you owe and to whom, it can let you know if you've been the victim of identity theft, it can tell you if someone has accidentally reported a debt that doesn't belong to you, it can let you check to see if all of your information is correct and a myriad of other reasons. Did you know that not having good credit can bar you from being employed at some places and it can even cost you more money in most things you try to buy. For example, if you have bad credit, you can't get a job at a bank, you'll pay lots more money if you try to buy a house or a car, and you will be looked at poorly by companies that you wish to open a line of credit with. That's a lot of reasons to take advantage of your free annual credit report.
Save Money
When you get your annual credit report, see how much you owe and who you owe that amount to. If you have a lot of small balances, try paying them off a little at a time, one at a time. Just doing that little bit over time will drastically raise your credit score and you'd be amazed at how fast it will fix your credit. Then, when you try to buy a house or a car, you'll get a much lower interest rate, which will save you a lot of money over time. Not to mention that you may get that important job you've always wanted.
If the balances on your annual credit report are high, don't stress out. Contact the creditor and ask them if you can settle, if you have the money, or set up a payment plan. Sometimes, if you set up a payment plan with the creditor, that company will take your derogatory marks off your annual credit report.
Seven To Ten Years
Keep in mind that most derogatory items, such as late payments and lack of payment, can stay on your credit report for seven to ten years. However, if you show that you're trying to fix your credit report, this can do wonders for your image in the eyes of lenders who you're trying to get lines of credit with.
