Why you really need to check your credit report

Your credit report says loads about you. Are you a dependable bill payer? Does the amount you have outstanding in bills mean you might not be a good credit risk?  Have you been sued?  Useful information for creditors seeking to potentially extend credit to you.  So, don’t you want the information on your credit report to be accurate?  It may not be accurate, according to a recent government study.
The Federal Trade Commission’s report found one in four consumers had errors on their credit reports that might affect their credit scores.  These errors could either prevent them from getting credit or raise the rates the consumers paid for credit.

These are eye-opening numbers for American consumers,” said Howard Shelanski, Director of the FTC’s Bureau of Economics.  “The results of this first-of-its-kind study make it clear that consumers should check their credit reports regularly.  If they don’t, they are potentially putting their pocketbooks at risk.

It is very important that you check your credit report at least once a year to identify and correct inaccuracies.  The Federal Trade Commission gives consumers the ability to get a free credit report once a year from all three credit reporting agencies.  Don’t be misled by those “free credit report” sites. The FTC is the only place to get a true free credit report.  The web address is annualcreditreport.com.  Once you get a copy of your credit report, then you can start correcting errors.  According to the FTC report, the credit score for one in 20 consumers increased 25 points following disputing incorrect credit entries.  This can be the difference it takes to qualify for a home or car loan.
In FTC Study, Five Percent of Consumers Had Errors on Their Credit Reports That Could Result in Less Favorable Terms for Loans.