In my opinion, you should be watching not just your personal health, but the health of your finances as well. As a part of my commitment to help you have a sustainable and responsible home ownership, I am standing behind you and am supporting you in your life journey. And that means talking about your finances. That’s right, I am talking about that big elephant in the room, for some people.
Let’s talk about credit reports. Today, you can’t buy a car, furniture, or even get cable or a new cell phone, without having your credit history checked. And then there is an apartment rental and a home purchase.
Knowing what’s on your credit report, is vital to your financial health. Your credit history tells a story: how likely are you to make your payments on time, how many other payments are you making and how you are making these payments, and what your outstanding credit balances are. It’s important to make sure that the story your credit reports tell is correct.
Federal Law requires each of 3 nationwide consumer credit reporting companies – Equifax, Experian and TransUnion – to give you a free credit report every 12 months, if you ask for it. Let’s make your requests for free reports more intentional.
This month, your homework is to request a report from just 1 company: TransUnion. I will remind you in August and December to get the other 2 reports. By spreading your requests over the year, you will be checking your credit report every 4 months, to make sure everything looks good, throughout the year. Head over to www.AnnualCreditReport.com and follow the instructions to request your report. Be sure to save a PDF copy of the report and review it thoroughly.
When reviewing your report, make sure you recognize the information on the report: names, addresses, social security number, accounts and loans. If you find information that you believe is inaccurate, contact the credit reporting company that issued the report.
Keeping an eye on your credit report throughout the year will give you a piece of mind knowing that everything is going well, and when it’s time to make a purchase and you need to borrow funds, you will know that your financial history is in good shape. This is especially important when you are ready to buy a home.
Want to know more about how your credit history affects your borrowing power? Reach out and let’s talk over coffee! You can also check out my interview with a credit expert here: Credit Scores, A to Z