Most people probably take their credit report for granted, not really bothering to make sure that all the information inside the report is accurate and up to date. This is actually very important because there is more than likely information that is out dated and accounts that were settled or payed off long ago.

The easiest way to start is by ordering a copy, free, from annualcreditreport.com or any of the other free credit report providers. Federal law allows each individual to order a copy of their report each year and the website above was put together by the top three reporting agencies in the country. Once you receive your copy, go through it and make sure that all of the information within is accurate and current. If you find information that is out of date or any other discrepancy, you can then contact the appropriate credit agency and ask that they dispute the information in question with whichever credit provider it may happen to be. Disputes are free to do, however; you may need to actually request another copy of your report at a later date to insure the information has been removed, which if required will cost you a small fee of less than forty dollars usually. This fee is a small price to pay to insure that all of your credit information is accurate. The cost of not maintaining a clean credit history could mean the difference in points on interest rates.

So lets talk a little about the three credit agencies and which one ranks the highest and is used most often to base credit decisions by lenders. I’m putting them in alphabetical order but this doesn’t mean that’s how they rank.

Equifax

Experian

TransUnion

Actually that’s exactly how they do rank. Most lenders and even some employers take the information in your Equifax file as the basis for the decisions they make about you. The credit score from equifax is generally lower than the one you may have with the other two agencies, experian and transunion. Normally, transunion is the high score. Experian the middle score and equifax the low score. Kind of interesting how that is the exact opposite of the weight each one carries and how that affects the decisions made as to loan applications or even employment applications.

Unfortunately, we live in a society where everything revolves around credit. The lower the score the more costly it can be to you in terms of your living conditions and even employment. How ironic. With that in mind, remember to check your credit report at least once a year mainly because you are entitled to do so at no charge.

If you have made a mess of your credit history, its your job to clean it up. There are several ways available for you to accomplish this. Firstly, do it yourself. You will find that it is not that difficult and its actually an education in itself. Secondly, if there are just to many discrepencies in your file or if you just dont have the time, there are companies that will clean your file and credit history for you.

Just be sure that you choose a reliable, reputable, and legal credit repair firm.

Tags: credit-report

Label: Maintain Credit Report