3 Ways to use Your Credit Report to Your Financial Advantage
If you’ve been trying to improve your finances, have you taken the steps to look at your credit report? If not, you may be missing out on seeing important information that you can use to your advantage. First, let’s briefly touch on what’s in a credit report to begin with.
Your credit report contains basic personal information that allows creditors to identify you, such as your name, address, date of birth, driver’s licence number and employment information, along with:
- Credit card data (if you have credit cards)
- Debts that are now paid, but were once in arrears
- Defaulted payments – including past due utility payments
- Information pertaining to credit that you’ve applied for
- Bankruptcies, judgments and other debt agreements
Now that you know some of the information that’s in your credit report, here are 3 ways to use it to your financial advantage:
- Sometimes inaccuracies are recorded on a person’s credit report. If there is inaccurate information listed, it may be adversely affecting the interest rates you’re paying and/or being able to get approved for new credit. By viewing your credit information, you can check to make sure that all information is accurate, and if it’s not, you can start taking steps to get the inaccurate data corrected.
- It can make you aware of any credit issues that may exist. If you’re not sure where your credit stands, than you can’t start taking any steps towards raising your credit score. With all of the information in your hands, you will have an accurate picture of financial issues that need to be fixed.
- Your credit report can also indicate whether or not you’re the only person who’s been using your identifying information. Identity theft can cost a person both a lot of time and money. By checking your credit report, you can match up your records and debts with what’s on your report. If you notice any differences, the sooner you can start investigating the issue, the better.
As you can now tell, your credit report is an important tool that you can use to your financial advantage. Whether you’re looking for a way to save on interest rates, or you just want to make sure that you haven’t been a victim of identity theft, your credit report is a great place to start!