| October 2008 |
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Have You Seen Your Credit Report Recently?
Credit errors can be expensive The only person who can tell your credit report is intact is you. And if there is a mistake on the report that drives down your credit score (or FICO score), it will cost you money. According to the myfico.com web page, a person with a FICO score of 760 or more will would pay on average $156 less each month on a $150,000 mortgage than a person with a score of 639 or less. That's almost $2,000 every year! You wouldn't let $2,000 go missing in checking account. Avoid identity theft And paying more interest isn't even the biggest reason to check your credit report: Not tracking your credit makes you more vulnerable to identity theft. You check your credit cards each month, but that doesn't mean another account wasn't opened in your name. The worst-case scenario is that an account is opened in your name, an enormous bill is rung up and you don't find out until months later when the collectors call you about a mysterious account. Good news Sorry, we didn't mean to terrify you. But now that we have your attention, the good news is that this past September, as mandated in the Fair and Accurate Credit Transactions Act (FACT ACT) passed in 2003, everybody in the United States is entitled to one credit report each year from the three credit reporting agencies Experian, Equifax and Trans Union. To get started, visit www.AnnualCreditReport.com. Also note that your credit score is not the same as your credit report. The report lists your credit activity and that is handled by the three major credit reporting agencies. The score (named after the inventors at Fair Isaac Corporation) is a calculation based on information in the report. Knowing your score can be helpful because if it's low, you'll want to raise it. But seeing your report is essential to protecting your financial interests. |
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