In the financial world, a credit report is like the Holy Grail for any person. A lot of weight is given to what your credit report says. It is important in helping you get a credit card, a loan and even your employer will take a look at it. It speaks volumes about your financial health.
Hence, you should take a look at it at least every six months or once a year. While you are going through it, it is important that you look out for these details:
1. Amount of Debt
Assess the amount of debt you owe. Go over your own bills and accounts and verify that the amount is correct. It is important that you do this because a credit report is not perfect and there can be an instance of a wrong entry. Make certain that any debt you paid off is noted.
2. Who do you Owe?
If you are using many credit cards and have taken a number of loans, it helps if you know which debt goes to whom.
3. Check your Payments
One of the best ways to help keep up with your debt is to make the monthly payments consistently. Go through your payment sections and verify that you have been able to make all the monthly payments for your debt regularly. Also, check that you haven’t missed out on any debt.
4. Go over your Own Details
Go over the details that identify who you are. Check the name, address and other details carefully. Confirm that yourname is spelled right, employment information, home address and other details are correct.
5. Credit Score
A credit score is the litmus test of whether your debt situation is great, fine or bad. A credit score above 700 is great, 600 is average and anything below 500 does not bode well for you. A credit score is the over-all rating for your credit report and often, it is a deciding factor for a lender agency to give you loan.
What can you do if you find incorrect data?
If you find that incorrect data is listed in the credit report, you need to act immediately. Contact both of the credit bureaus that have compiled the report and the creditor involved.
This could have happened for two reasons:
– Your lender agency sent the wrong information to the credit bureau
– You are a victim of fraud
Incorrect data will negatively affect your credit score and that is not a good thing.
Take Action if you don’t have a good credit score
Once you find out that your credit score is not good, don’t just sit on it, do something about it. Review your debt and the payments you are making. You need to step up the payments you are making every month. It is best to get in touch with a debt consultant who has the experience to offer you the best advice depending on your financial situation.