When applying for a loan or buying insurance in Utah, the worst mistake you could probably make is assuming that all of your credit reports are 100% accurate.
More often than not, an incorrect item appears in a consumer’s file, which may bring down that person’s credit scores. According to a Federal Trade Commission study, over a quarter of Americans found out that they have at least one credit report error that could make them appear riskier in the eyes of creditors.
Before you shop for home improvement contractors, new houses, or used motorcycles in Salt Lake City, review your credit reports from Experian, Equifax, and TransUnion first to make sure your FICO scores truly reflect your creditworthiness.
At the risk of blaming the victim, you may have played a role in any inaccuracy on your credit reports. Below are the things you inadvertently do.
Using Inconsistent Personal Information
It is imperative to use the same name in each of your credit application. Otherwise, your accounts may seem to belong to different people. Credit bureaus create reports by collating consumer data reported under one name. You can’t blame them for doing so if you use your given name in some of your accounts and your nickname in others.
Be particular with the characters you enter in the documents. Also, apply the same level of care with your other personal pieces of information, such as your address and social security number.
Choosing a Creditor That Does Not Report to Credit Bureaus
The Fair Credit Reporting Act does not require all merchants and financial institutions to report consumer information. Many voluntarily submit financial data to credit bureaus, but some do not bother.
To make sure credit account, you open and every transaction you make counts, ask the other party about its credit data reporting policy. If you were told that they report to credit bureaus, but your account with them is missing, consider switching to another to avoid wasting an opportunity to build up your credit scores.
Submitting Hand-Written Credit Applications
Some credit report errors are clerical mistakes, but they are likely to happen if you do not opt for computerized credit applications. To err is human, but hand-written information increases the chances of errors.
If you can process your application digitally, do it. This way, you can review your personal details before clicking the submit button.
Make Yourself Vulnerable to Identity Thefts
Identity theft is on the rise because consumers are becoming more careless with their sensitive information.
Never share your social security number, credit card details, ATM PINs, and online banking credentials to anyone. If you must tell them to another soul, make sure you absolutely trust this person.
Furthermore, be wary of your online activity. Avoid using public computers, for you do not know if the next user is an identity thief. Go paperless, so you no longer receive mail with sensitive information any stranger could easily steal.
Ensuring your credit reports needs work, but it is worth the trouble. Initiating a dispute to fix errors may take time, so do not procrastinate if you intend to seek credit soon.