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Have you read anything lately that was so important that it changed your life? If not, we would like to suggest something to read — your credit report. Granted, simply reading your credit report may not have any effect on your life, but failure to do so can harm your life if identity thieves are opening accounts in your name and racking up bills without your knowledge.
A review of your credit reports can reveal several issues to correct, including false accounts and errors in reporting your bill payments. Erroneous data can cost you money by lowering your credit score and also potentially cause you to be denied credit cards, mortgage loans or other forms of credit.
Your credit report represents a relatively comprehensive record of all of your credit activity. It contains information from any creditor that reports activity to the three major credit bureaus (Experian, Equifax, and TransUnion). Information is not automatically reported to all three agencies, so it is best to check all three reports to get the full picture. You can see all three credit reports right away by using Credit Manager by MoneyTips.
Each agency's credit report differs slightly in format, but they will all contain the same basic types of information.
Errors in your personal information could be inadvertent, or a sign of someone attempting to open a false account. In either case, it's important to contact the credit bureau to get the discrepancy resolved. Similarly, review your account history for any incorrectly reported payments and anything in the adverse account section that gives an inaccurate reflection of your account.
Follow up with creditors on any unsolicited hard pull that you do not recognize. You may be able to stop a fraudulent account before it can be activated. In the case of accounts that have already been opened, you must take immediate action with the creditors to close these accounts and limit the damage.
If you find evidence of identity theft, apply a credit freeze on your account to prevent any more fraudulent accounts to be opened without your consent. You will need to lift the freeze temporarily to open any legitimate new accounts.
By keeping up with your credit reports, you can have the peace of mind that comes with secure credit accounts — or the peace of mind that comes with stopping a thief from stealing your identity and draining your accounts. Either way, peace is yours.
You can check your credit score and read your credit report for free within minutes using Credit Manager by MoneyTips.
Originally Posted at: https://www.moneytips.com/how-to-read-your-credit-report