Fair Credit Reports
Is that Fair? No! But no one ever promised you it would be fair!!
One last problem with credit reports for you to realize…although credit bureaus and the companies reporting to them make their fair share of the errors, borrowers do too. Some common errors include paying late or failing to pay at all, being a cosigner on a loan that may default, and moving your residence or business and failing to notify your creditors.
Although credit bureaus are under no obligation to correct errors in your credit report if you request that they do so, they can not and will not remove information that is accurate but negative. What’s more, negative information, such as late payments, will remain in your report for seven years; Chapter 7 bankruptcy information stays for 10 years.
Fair Credit Reports….check them out
With all this room for mistakes to be made in your credit report, you can see how important it is for you to track it down, check it out and, if need be, make sure any errors are corrected. While it’s not a bad idea to review a copy of your credit report every year, a periodic review may be sufficient. One thing to keep in mind though, is that you should review it before applying for a credit card or a loan; otherwise, you could be in for a big surprise and perhaps even a disappointment.
Before we explain how you can go about checking and correcting your credit report, we want to emphasize again how important the report is when it comes to applying for and receiving any kind of credit, whether it’s a credit card or a car loan. Again, the report is your "reputation" among lenders. It’s how they "know" you. And because of that, it’s more than just a good idea to make sure the information is accurate and favorable to you, it’s a necessity if you want the extended buying power and convenience credit affords.
But don’t let this talk of necessity discourage you. The good news is…