An annual physical is a valuable tool to keep your body in shape, and it’s also a vital part of maintaining your financial health.
Reviewing your credit history is part of a thorough financial checkup, and under the Fair Credit Reporting Act, Valley residents may now take a close look at their credit records for free. That’s a real boon to consumers in these days of computer errors, identity theft, and an increasing reliance on credit scores for major purchases.
Your credit history determines whether you qualify for a zero percent car loan, a cut-rate credit card offer, or a rock-bottom mortgage rate. It can affect your ability to rent an apartment or house or even land a job. And it may determine whether you must pay a deposit on utility services.
Under federal regulations passed in 2005, you are entitled to an annual look at the records the three major credit bureaus keep on your finances, at no charge. This allows you to discover and correct any mistakes, to see how well you are managing credit, and to improve your record if necessary.
To request your free reports, go to www.annualcreditreport.com or call (877) 322-8228.
Study the reports, making sure the information is accurate and that all of your accounts are included. Credit can be adversely affected if your major accounts don’t show up, as a solid payment history works to boost one’s eligibility in the eyes of future suitors. Obviously, erroneous information on the ugly side – such as late or no payments to accounts that are not yours – need to be cleared up.
You may challenge any information on the credit reports and you have a right to receive a response within 30 days. Do it in writing and keep copies of correspondence. If the credit bureaus can’t verify the information with the reporting credit issuer, by law they must remove the item from your permanent record.
The free reports won’t provide your actual credit score. The most well-known of these is the FICO score, developed by Fair Isaac & Co. You may obtain this number, which ranges from 300 for the highest risks to 850 for the lowest, with a $7 payment at the time you order your credit history report. So if you want to know your score along with your history, have your credit card handy.