credit report codes experian
credit report codes experian
Uncorrected errors on your credit report could be costing you thousands of dollars per year. Are you checking your credit report on a regular basis? Don’t assume that your credit report is accurate. It’s up to you to check it and take action to any correct errors.
Having an accurate credit report is important because credit card companies, lenders, employers and landlords check your credit report to make decisions about your credit worthiness. If the wrong information is on your report, you could miss out on important financial opportunities or be charged higher fees and interest rates.
How often should you check your report? Once every two years is standard. However, if you intend to apply for a mortgage, business loan or rental agreement, you should definitely double check your report before meeting with your lender or landlord. This way, you will avoid being blindsided by credit errors, and have a chance to correct any errors beforehand.
Once you make the decision to check your credit report, make sure you get reports from all three credit reporting agencies (Experian, Equifax & TransUnion), and check each for accuracy.
While reading the reports, it helps to understand how they are structured, and what to look for. Each report is broken into four sections: Identifying Information, Credit History, Public Records and Inquiries. First, you will want to ensure that your name, address and especially your social security number are correct. Scan the notes and codes in the Credit History section. Some agencies use R & I codes plus the numbers 1 through 9 to rate payment histories. For example, an R1 or I1 indicates a good payment history, while a R9 or I9 indicates a poor history. The Public Records section should be blank unless you have had a bankruptcy, judgment or tax lien – pay particular attention to any entries in this section as they tend to have the most impact on your overall credit score. The Inquiries section may have lots of entries, this is not unusual. What you want to pay attention to here is inquiries from organizations that you do not recognize, especially if they have made recurring inquiries.
Some estimates say that up to 80% of credit reports contain some type of error. Luckily, you have the power to take control of your credit today. For further information on this subject, including how to order scores & reports and how to fix any errors you may find, read “Improving Your Credit Score” at GoldAllianceGroup.com.
About the Author:
Lin Jenkins is a small business owner and planning professional. Visit GoldAllianceGroup.com for effective small business resources.
Article Source: ArticlesBase.com – Is Your Unchecked Credit Report Costing You?
