The state of your credit these days can have monumental implications for your financial well-being. More and more companies and organizations are now pulling credit as a way to vet their applicants. In the past, your credit only used to matter if you were applying for an auto or home loan but nowadays, employers are also requesting a copy.
There are three major credit reports although smaller organizations and agencies do exist whose sole purpose is to mine data. The three credit agencies are Equifax, Transunion, and Experian. While their data collection methods are similar, these three bureaus may contain different information regarding your credit. That is why you must become familiar with what all three agencies have about you.
Many financial experts recommend that you get a copy of your credit report at least once every six months. Others recommend once a year. Regardless of who is right, it is essential to familiarize yourself with what the three credit reporting agencies say concerning your credit rating. Most states do have a law that allows residents to obtain a free copy of their credit report every 12 months. Even then, you’ll be surprised just how many people go years without ever looking at their credit report, mostly out of fear of what they will encounter.
Fear of obtaining a credit report
With regulations in place in many states for residents to be able to obtain a free copy of their credit report, some are reluctant to do so. This is usually out of fear of what is contained therein. In many cases, these fears are unfounded. This is because as time goes on, negative items usually drop off your credit which usually improves your rating. Also, if you have acquired new loans or debt and are up-to-date in your payments, this can usually begin to offset the damage that you have incurred in the past. So, obtain your free copy of your credit report today.