The Benefits of Obtaining an Annual Credit Report?

Answer 1

There are many financial benefits to obtaining your annual credit report. Your annual free credit report is a financial document that contains detailed personal and financial information. It will include information on your place of residence, your full name and your social security number. Your annual credit report will also include information about your current employment and several previous addresses as well as any outstanding judgments against you.

One of the benefits of obtaining a copy of your annual credit report is that you will be able to track you credit rating and make sure it is accurate. If there are erroneous entries on your credit report that are negatively affecting your credit rating, you will have the information at your fingertips. In this way you will know to request that the company in error correct the information. It is important to make sure that you obtain a three bureau credit report, so that your credit picture is comprehensive.

You will also find your credit score on your annual credit report. This number reflects your overall credit rating and will be used by a variety of financial institutions to determine you credit worthiness based on your pattern or repayment on current or previous debts. A car insurance company, mortgage finance company, auto loan company or even a condo association may ask to evaluate your credit report before entering into a business relationship with you. Your credit score will range between 850 and 280 points. 280 points are the lowest amount of points possible. Most people’s credit scores are in the six hundreds. If your score is over 700, you are considered to have A+ credit and will be able to secure loans of all types at the most competitive rates.

It is also important to obtain your annual credit rating to verify if all of your personal information is correct. If there are numerous entries that are incorrect, it is a sign that your identity may have been breached. You would then be advised to look into the breach that seems to have occurred. For instance, if there is a Sear’s credit card on your credit report that you never applied for, that would be a good investigative place to begin tracing a possible incidence of identity theft and credit card fraud. Additionally, if there is a mismatch of personal information on your annual credit report, you will be aware that your identity may have been seriously compromised and you may need to report the problem to the local authorities.