It doesn’t matter what your credit score is or how good your credit is. There are many facets to your credit, some you control and some you do not. You certainly control the payments and the charges, but you don’t control who is looking at your credit nor can you control what is actually being reported about you (at least not yet).
Part of the problem falls squarely on our shoulders. We know we have a couple of late payments or a collection, maybe stuff that we’ve forgotten about but we don’t check to see. Then we apply for a Sears card or gas card and….DECLINED! What? Now we’re in shock!
In today’s credit driven environment it is imperative that you keep score too. Did you know that companies that you do business with; i.e. banks, credit card companies, insurance companies can periodically check your credit WITHOUT your permission? You already gave it to them. And when they do it LOWERS your credit score. Typically not by much, but some.
The last time I checked mine, I found that I now had two years residence in a state I’ve never even visited??? I have a Vietnamese friend, last name Nguyen. He explained that all children in Vietnam take the name of the current king, hence all of the Nguyen’s, and Phan’s and so on. He was upset because collections were showing up on his report for someone with the same name but were clearly not his, companies he had never done business with!.
Here’s another story: a client buys his wife a newer car, trades in the old one and with new financing pays off the old car and gets the new one. That was last October. In March they go to purchase a home and find that the old finance company was reporting him late on that closed loan in January and February!!! months after the loan was completely paid off!!!
I have literally hundreds more stories like these. One of my pet peeves (if you haven’t figured it out already) is the “credit bureaus” total disregard for reporting law mandated in the 1971 Fair Credit Reporting Act legislation! Unfortunately, until we can fix the problem you need to protect yourself. KNOW THE SCORE!
The website: Www.AnnualCreditReport.com is the portal to the “big three” credit bureaus; Equifax, Trans Union and Experian. From there you have access to print out your current credit one time each year for FREE. (I suggest you do this more often and pay for the service. It’s worth it when you consider that just one error can cost you thousands of dollars every year in higher costs).
Trust me, those companies make it a struggle just to get your “Free Credit Report”, trying to sell you everything under the sun and asking you to identify facts on your credit that are 20 years old. About half of my clients just give up and buy it! Amazingly, it then becomes so easy to get your report. Well, don’t complain (I do enough of that) just do it!
Scientists, coaches, managers all have to have an initial basis to start with, a place where they can begin to measure improvement. You do to! Go and get your Credit Report