The best thing you can do to maintain your credit is to view your credit report on a regular basis. Credit reports are an electronic document that attempts to summarize your credit history, and most businesses and government agencies that extend credit, will report your activity to credit reporting agencies periodically. By requesting a copy of your credit report every year or even every six months, you can determine if all the information in the report is accurate, and if not be proactive to change it. It is worth keeping in mind that your credit scores are now used for an array of purposes other than obtaining credit. There are many times when your credit score can dramatically impact your life. Credit reports are frequently obtained by companies, as a condition of employment. Insurance companies also review credit reports to determine your insurance rates. The point is that your credit score can have far reaching effects upon you. Here is how you can obtain a free credit report.
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Keep in mind, that you do not have a single credit report, but rather three of them. from the three independent credit reporting companies. Most of the time these reports do not vary widely, however, there are cases when the do. This is the reason it is imperative for you to obtain a report from all three credit agencies. The major credit reporting agencies are Trans Union, Equifax, and Experian.
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The good news is that each of the credit reporting agencies is required to give you a free report at least once annually. For those of us who need their credit report more often than once a year, a fee is levied. These reports are readily obtained by contacting the agencies via telephone or accessing their web sites.
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It is crucial that you obtain your free credit score on a regular basis so that any anomalies can be rectified. Mistakes on your credit report can result in the rejection of a mortgage or car loan. Credit reporting errors may also prevent your from obtaining a job and have a negative impact on your insurance premium. If you are planning on making a large purchase it is always a good idea to view your credit report before making your purchase.
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In cases where you suspect that someone has stolen your identity, obtain your credit report as soon as possible. One way to reduce the damage done by identity theft is to contact the three major credit bureaus and request that any new loans and credit cards that are applied for should be flagged and the identity of the applicant carefully verified. You can minimize the adverse effects of identity theft by checking your credit report regularly for fraudulent activity.