The second quarter of the year has begun. This also marks the start of a new season. As winter ends, people bid the cold adieu and pleasantly welcome spring. In line with the shift of seasons, it is also that time of the year when we have to set our clocks forward for daylight saving time.
For most people, this natural flux calls for personal transitions as well. Appropriately pegged after the season when it is usually practiced, spring cleaning is the meticulous tidying up of our homes after a long and harsh winter. Homes are thoroughly cleaned so that things can be stored for next winter or tossed out.
As this annual practice gives us an opportunity to sort out our personal possessions, it is best to extend this thoroughness to personal matters as well. Spring cleaning tips should go beyond homes and wardrobes. This period can also be the best time to go through our finances. It should be a regular habit to check our credit reports for any inaccuracies and glitches. This would be a good addition to our spring cleaning checklist.
Recognize the importance of credit clean up
Personal money management requires a level of understanding and sense of responsibility. Taking control of your finances may first seem a bit arduous. Others believe that it’s just a matter of setting the right habits. Credit worthiness dictates one’s spending ability. With this fact alone, people must realize how important their credit is. A messed up credit report due to one’s own negligence or from an error made by a creditor or financial institution can seriously hurt a consumer’s finances.
A minor slip can have grave effects. In an article published by Chicago tribune, Donna Mosier shares her story about how this kind of oversight tremendously affected her credit. All these years, Mosier was confident that her deceased ex-husband took care of removing her name in all their joint accounts. This was until she received a letter from a collections agency stating that she had to settle an unpaid account with Home Depot. What made matters worse was, she was reported as deceased! Further probing led this unfortunate consumer to discover that Citibank also committed the same blunder. For years, she had no idea that these accounts were under her name until her credit has already been compromised.
The costs of a credit slip under your name
The painful detriments that come with these types of errors can be traumatizing for most. Mosier had impeccable credit until this unfavorable incident hit her. Aside from this error being reflected on her credit reports, this directly affected her credit score as well. Credit services available to her are unequivocally affected. Approvals for loans, mortgages and other benefits that a good credit standing offers will not come as easy as before. Of course it is possible to correct this mistake. However, considering the hours and effort that will go into rectifying this error can cause so much distress.
NOW is the right time to clean up your credit!
Cleaning up your credit does not take as much effort as you may think it does. It is just a matter of being vigilant and aware of the various options made available to consumers like you. Checking your credit report has been made convenient by a number of companies who understand the importance of financial management and how to help keep your credit protected. Regular credit monitoring is reinforced so that we can avoid issues that will cause us unnecessary financial worries.
The things you should watch out for on your credit report:
Your credit report contains information about your identity, your existing credit, vital public records and companies who make inquiries about you. The importance of its accuracy is essential. It is a straightforward reflection of your personal, professional and financial activities. Simply, this file can make or break you.
Understand that the information listed on this report dictates how you are rated as a credible individual and consumer. Can you imagine the havoc if your credit report includes data and transactions made by identity thieves and fraudsters? It is important to watch out for any suspicious accounts, credit card or financial transactions, loans, names of unknown employers and legal documents that are filed under your name. Once you find any strange data in your credit report, you must immediately contact the credit reporting agency who has the error on file.
Knowing your rights as a consumer
The three major credit reporting agencies: Equifax, Experian and TransUnion collate consumer’s data from different creditors, financial establishments and government institutions. The information they gather is reflected directly in your credit file. Reports may vary from one credit report to another as each agency gets their information from various sources. As a consumer, you must be aware of this fact and understand that any error on your credit report can be rectified. By contacting the credit bureau the error appears in, or the creditor who reported it incorrectly, the incorrect information can be amended.
This is why constant credit monitoring is encouraged by the government and by our credit bureaus. It is also an effective way to maximize the credit services that are offered by different credit assisting bodies managed privately by different companies and by the US government. In addition, checking your credit score helps you know which benefits are readily available to you. This ranges from a low interest car loan or mortgage that you’ve been eyeing for some time.
The perks of making credit monitoring a habit can be great and rewarding. Consumers should not limit themselves to what credit is only available as a result of an error. By becoming more vigilant and conscious of the positive effects of constant credit checks helps prevent the negative possibilities that can hurt us as consumers and individuals in the long run.
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