Understanding Personal Credit Can Help You Have Better
Purchasing Power
The more you want to be able to have in life like nice cars and
homes, the more important personal credit becomes in being able
to have those items and a great deal more. Unfortunately, many
people don't understand personal credit and the impact it has on
many aspects of their life and how it can influence the way that
they can live after some time. Personal credit is all based on
an individual's credit report, which contains a great deal of
information like buying and payment habits. All of the financial
information about a person's personal credit history is
contained on their credit report.
It is important to know about what is on your personal credit
report even before looking to make any kind of purchase or apply
for any type of credit. A good credit report can give you a
great deal of purchasing power while a less than acceptable
personal credit report can have a great deal of influence on how
much interest you may end up paying or if you can even get
credit or be allowed financing at all. While you may think that
you have excellent credit, it pays to check and find out if
there are any errors or discrepancies that can be fixed before
attempting to get financing on any purchase.
You should check your personal credit report at least once a
year by examining reports from each of the three major credit
bureaus, which are Experian, Equifax and Trans Union. Many times
you can view your reports for under $10.00 or even for free. In
fact, if you are checking your report because you have been
turned down for credit by a lender, you can view your credit
report for free within 60 days of that decision.
When viewing your personal credit report, you should look at all
of the information as a potential creditor would see it. Make
sure that if you pay all of your bills on time, the report
accurately displays this information. If your debt is near your
credit limit, this is not looked on favorably. Your credit
rating is especially important if you don't have an extensive
personal credit history yet. If you apply for a lot of credit
during a short period of time, this is factored in your personal
credit report and can have a damaging impact on approval or
interest rates.
If you happen to find a discrepancy on your personal credit
report, make sure that all of the information that is listed
really belongs to you and that the balances are current and
correct. If you find that a credit report still lists old loans
that have been satisfied, contact the credit bureau and request
that it be adjusted. Keep in mind that information including
bankruptcies and collection agency referrals are kept on
personal credit reports for between seven and ten years. If you
find any errors on your personal credit report, the credit
bureau is required to investigate the incorrect entry and adjust
it accordingly.