Only a few people are aware that almost 79% of the credit reports have some or the other kind of discrepancies in them. According to a study conducted by an agency which works for the rights of the US consumers some of the common mistakes include repetition of information, entries which have nothing to do with you, just to talk of a few.
Let us look at some of the stats which might come as a surprise to you:
- In around 24% of the reports, there are chances of double entry for the loans or mortgages you have taken
- Some o the important accounts like the credit cards, mortgages and the like go missing from your report. Around 8% of such discrepancies have been reported.
- Can you imagine, all the efforts put in by you to close your accounts simply go in vain because around 30% of the credit reports show the closed accounts as open.
- Around 54% of the reports have wrong spellings and incorrect or outdated personal information.
Isn’t this an alarming situation? Looking at all this it is necessary that you keep checking your credit report at regular intervals for any discrepancies.
Here come some more revelations which can further shock you. You must be aware of the three credit bureaus in the US which handle credit reports of more than 90% Americans.. Have you ever wondered how do they make money? A lot of people are of the belief that they earn by offering credit report access to the financial institutions on their demand. Well this is partially true. Most of the money that the bureaus make is by selling your personal and vital financial information to the financial companies who are looking for leads to approach people for the lending purposes. They even sell it to the landlords, brokers, cellular companies, all for a sum of money which is really high. What is really surprising is that you are never contacted before selling your information to these companies.
So, now you know where the mobile companies and the insurance companies get your contact details and why you receive numerous calls for service requests.
All this can lead to a major fall in your credit ratings. The next time you approach any of the lenders or the banks for a loan, you will have to agree to high interest rates or will be denied any loan completely.
So, it is really important that you maintain a good credit score. Here are certain tips following which you can see your credit ratings reach the levels where getting a bad credit installment loans at the time of emergency would never be a problem for you.
- Keep your spending on the credit cards within 30% of the credit limit allowed.
- Try and maintain at least three credit accounts. If you can successfully manage them and keep a tab on your expenses, it can offer a great fillip to your credit rating.
- Get a secondary card in your name by asking any of the family member who holds a primary card.
- You can always take the credit monitoring services. These offer regular monitoring and recent updates on your credit report and also suggest on ways to fix the issues which come from time to time.
- Instead of paying off the accounts with the collection agencies. Try and first consult your financial experts, get to know ways by which you can minimize the damage to your credit history and the rating.
Now that you have the provision of getting your credit report once a year without any extra costs, use the facility to check on your report.