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Credit Report – Check Yours Regularly… And For Free
By: Charles Essmeier
In the twenty-first century, there are few documents that have a greater impact
on the lives of Americans then their credit report. Credit rating determines
one’s ability to buy a home, a car, or to obtain a credit card or a job. Since
these things are important, it is equally important that the information be
accurate. The only way to be sure of that is to check the report regularly.
Prior to last fall, there were two ways to obtain a copy of your credit report:
to pay for one, or to obtain one for free after being denied credit. Thanks to
the Fair Credit Reporting Act passed last year, Americans can now obtain a free
copy of their credit report from each of the three credit reporting agencies
once a year.
Due to anticipated heavy response to the offer of free credit reports, the
program has been rolled out in stages. People living in the West and Midwest are
already eligible to apply for a copy of their report at
www.annualcreditreport.com. As of June 1, 2005, those living in the Southeast
are now eligible, and on September 1, 2005, those living in the Northeast will
be eligible. All that is required to receive a copy of your credit report is to
answer a few simple questions. Since it only takes a few minutes to do, there is
really no reason to put off checking your credit report, and you may benefit
tremendously by doing so.
The credit score is a single, three digit number that represents an individual’s
credit worthiness, and that score is obtained through a complex formula that
takes into consideration a person’s borrowing and spending habits and payment
history. A high score makes someone more eligible for loans and credit, while a
lower score may indicate that a person is a risk to repay. While the information
contained on a credit report is generally accurate, incorrect information
sometimes shows up on credit reports, and incorrect information could result in
someone who being denied a loan for which they might otherwise be qualified.
Furthermore, a credit report check is the best way to determine if you have been
the victim of identity theft, an increasingly popular crime that often goes
unnoticed for a year or more. If your identity is stolen, your credit rating can
be ruined and you can be burdened with thousands of dollars in debt. The new
bankruptcy law, which goes into effect in October 2005, draws no distinctions
between debt incurred by an individual and debt incurred through identity theft.
This alone should be reason enough to check your credit report regularly.
Since the law now allows individuals to obtain one free report per agency per
year, anyone who wants to keep a close eye on their credit report can obtain a
free report as often as every four months. Since the credit report affects your
life in so many important ways, checking it regularly should become a habit.
About the Author:
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro
Marketing, a firm devoted to informational Websites, including
http://www.End-Your-Debt.com ,
a site devoted to debt consolidation and credit counseling, and
http://www.StructuredSettlementHelp.com ,
a site devoted to information regarding structured settlements.
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