What’s in Your Credit File?
Whose business is it anyway and why do I ask? Too often, people that may have had an issue or two with their credit report have stepped into a state of DENIAL and avoid their credit report at all cost. Then again, you may be a person with an awesome credit score and you take great pride in that, you even visit it more than a close relative, right? No matter what side of the pendulum you are on, the fact remains that you should visit your credit report at least once a year www.annualcreditreport.com to ensure that everything that should be reported is (obviously only the items that can help you) and more importantly to ensure that there isn’t something or someone else’s items reported on your credit report that shouldn’t be there.
Absolutely! Credit scores are the means by which lenders determine our propensity to pay. When loans are made, gone are the days of looking someone in the eyes and initiating a handshake as an agreement/contract for borrowing. Today, credit scoring is the fast, objective measurement of your credit risk. Prior to using this credit scoring system, the process could be slow, inconsistent and unfairly biased. You will want to review your credit reports to keep a step ahead of any unknown issues or identity theft.
Did you know that your credit score is now used for gaining housing in the rental market and even when you apply for employment? It is spreading in usage and is what I like to refer to as your “Report Card in Life”.
Is it the Only Way?
No, there are those who say that you should NOT have any credit out there and that your ability to pay can be shown in other ways. The idea is that you should save up the cash before making any purchases. I’m good with that but also feel that you can build equity in a home (most of the time) faster than saving up for it. Yes, there are a few lenders out there that will factor in and do manual underwriting and that is all good depending on your position and situation. I am personally for both sides. I love being nearly debt free (mortgage still to go) and yet I still manage my credit in order to increase my score.
In my future blogs, we will be setting you up to WIN by taking action. For a more detailed explanation of the history of the credit scoring model, request your complimentary e-Book on Credit HERE.
As a Coach, it is my intention to break it down into bite size pieces and give you action items that will set you up to WIN! You may be wondering why should you READ and DO? The actions that you DO today will build on each other in order to improve your credit knowledge, credit scores and even help you do those tasks of making your Wills, Trusts, designations, and directives. What’s in it for you? First and foremost, you will save money by getting reduced interest rates for loans, lower insurance rates (Yes, your insurance policies are risk rated and adjusted accordingly) and the peace of mind of knowing that you are protecting yourself and your family!
ACTION ITEM: In the next 48 hours…Pull your current credit report using the website www.annualcreditreport.com (unless you have already pulled it within the past year). Review it for erroneous items.
If there are errors or items that do not belong to you, items that have been there more than 5 years or a bankruptcy that has been on for more than 10 years, reach out to me via email (Info@CreditGal.CO) for a complimentary 20-minute private phone consultation and personalized action plan.
Written by Kim Burger ~ Credit Gal, Master Coach and Field Trainer for Financial Education Services.
Information Gathered Through FES (Financial Education Services) and United Credit www.CreditGalKim.com