Annual Credit Report Review

Recently, while applying for a loan, I had a chance to review my credit report. I was surprised to find one of the agencies reporting an outstanding loan balance that had been paid off over 5 years ago. Even though the loan no longer existed, the bank had to include the balance in their calculations to determine my loan eligibility. Through this process I discovered several other errors and/or old information on my credit report. While I was able to get through the loan process, I am still working with the credit agencies to update my information. Lesson learned – you should check and update your credit report annually. It can take several months to correct erroneous information and you don’t want to wait until you are in the middle of a loan application to find out there is a problem.

These credit reports are a central location to information regarding your financial history. By reviewing these reports, you will be able to see where you stand on the financial platform, and will be able to monitor your performance as your finances change. The reports generated by these agencies are not only used by lenders or creditors, they are sometimes requested by prospective employers and community HOA’s (They must request your permission before obtaining a report). In the case of a loan application, your credit score not only determines your loan eligibility but also the interest rate offered by the lender. Individuals with higher credit scores are deemed a lower credit risk. You can save thousands of dollars over the years if you qualify for a lower interest rate because of a higher credit score.

I know you all are thinking “well what is this going to cost?” Luckily, the three major credit bureaus are required to give you a FREE credit report each year. The only time you will be charged is if you request additional reports. Below you can find the contact information of the bureaus who offer this service:

Equifax Credit Information Services
P.O. Box 740241
Atlanta, GA 30374
(800)685-1111
http://www.equifax.com/

Experian
P.O. Box 2002
Allen, TX 75013
(888)397-3742
http://www.experian.com/

Trans Union
P.O. Box 390
Springfield, PA 19064
(800)888-4213
http://www.tuc.com/

As always we hope everyone is having a wonderful week and is enjoying the last few days of spring!