A free credit report is easier to come by since obtaining a copy became a right each person has, once a year, from each of the three credit reporting companies. There are other reasons a person is entitled to a copy of their financial record: if unemployed, when getting assistance from the state, or when denied a new account within 30 days of being turned down. All the consumer has to do is write a letter to the lending company that is directly involved with the action in question, and by law, they have to respond to the request.
It is important to obtain an annual credit report for many reasons. By getting a copy of the individualized record, mistakes can be found and corrected before they become a major issue. For example, the borrower is making plans to buy a house and the lender, when pulling the record of past financial dealings, finds that someone has been using the borrower's identity or that a debt paid off three years ago is showing up delinquent. The result is not being approved for the mortgage. These types of errors can be addressed and corrected when making a point of keeping a close tab with a yearly review from a free credit report.
There are many things to look for, when checking these records for errors, on all current and delinquent debts. Start by matching paid receipts with the report to see if what the document says matches them. If not, immediately write letters to the appropriate creditors requesting they review the account. After coming to an agreed conclusion on what the credit report should really say, the person is entitled to another free credit report to show the changes are actually made. Also, check for things one might think are obvious like the spelling of the name, social security number, current employer, and current address. It's amazing how simple identifying information gets jumbled. Not only should the information on bad debts be correct, but make sure that all the 'good' records are there as well.
Once the borrower is sure everything is correct on the free credit report, consider some ways to make it shine. Every time the record is pulled, there is a 'nick' made on it. Avoid checking the financial history for unnecessary reasons. When shopping for a car or a house loan, however, "shopping around" is counted as one inquiry. Credit bureaus understand a potential borrower trying to find the best deal, and they appreciate that. Make sure bad debts get paid off as soon as possible and keep credit card balances at a minimum.
God entrusts us with His money as an earthly test of how valuable we perceive heaven. "Whiles by the experiment of this ministration they glorify God for your professed subjection unto the gospel of Christ, and for your liberal distribution unto all men" (2 Corinthians 9:13). Keep this in mind when making purchases and be surprised how spending actions change once financial responsibility thinking is changed. Managing how the credit report is impacted is a result of good financial planning.
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