Many of my clients ask me about their credit score and how they can properly manage their credit after bankruptcy. When trying to rebuild your credit it is important to regularly check your credit rating. I have put together a list of things to look for when checking your credit score.
There are a number of tools that can help you review your credit score. One of our favorites is CreditKarma.com. If you have a Gmail account you can review your credit rating on a regular basis. The best part is that it is FREE. You can also review your entire credit report once a year at annualcreditreport.com. Keep reading for a summary of how to review your credit report.
Credit Report Basics:
There are three major credit bureaus (Equifax, Experian and TransUnion). Each lender is not required to report to all of the credit bureaus, which means there may be an account that shows up under your Equifax report that is not listed on your Experian report.
Lenders also often report to the credit bureaus at different times throughout the month. This can be confusing and means that you should regularly check your report. Some accounts may disappear from your credit report if they have been paid off or closed which can cause even more confusion and uncertainty.
How to Read Your Credit Report:
An error on your credit report can negatively impact your credit health. It is important to regularly review your report to make sure there is not any incorrect information so you can get it corrected as soon as possible. The longer you wait to fix your report that more it will negatively impact your score. Errors can be avoided if you know how to properly review your credit report. Below is a list of the key aspects of your report.
Personal Information:
It is important to always double check your personal information such as your name, addresses, and employment information. It is possible that reporting has been mixed up, thus creating an error on your report. The good news is that you can make changes to your personal information.
Credit Accounts:
Check to make sure that all of the accounts listed on your report actually belong to you. There may be instances of an account being listed because it has a similar name as yours.This is very important because this could lead to identity theft. If you are concerned that this is the case, you can place a fraud alert or security freeze on your credit reports. Do this immediately to avoid any further damage to your credit report.
Another issue with your credit account could be missing and inaccurate information. Inaccurate payment history, incorrect credit limits and balances, account responsibility could all mean that your lender made a reporting error.
Credit Inquiries:
Hard credit inquiries occur when lenders, employers etc. request your credit report. If you are trying to buy a new car this can often result in multiple inquiries on your report. The more inquiries you have, the more your credit rating goes down.
Lenders often sell or transfer collections accounts numerous times. This can result in the same account being inadvertently listed more than once with different collections agencies. The key to avoid these types of errors is to monitor all sold or transferred accounts to make sure all information is actually correct and up-to-date.
Public Records:
Public records are records from the county, state or federal government that are available to the public. Bankruptcies, civil judgements and foreclosures are all examples of public records. It is important because bankruptcies stay on your credit report for ten years. If information included is out of date and remains on your credit report, you can dispute it as an error to the credit bureau. Disputes can be started online at www.experian.com/disputes, www.disputes.transunion.com, and www.ai.equifax.com/creditinvestigation.
Hopefully the above information gives you a better understanding of your credit report. Remember, there is life after bankruptcy. Please contact me for your free initial consultation.
