Submitting A Formal Credit Report Request

There are many reasons why people request copies of their credit reports. One of the most important reasons is to make sure that no one is committing identity fraud. Identity fraud is a very real problem, and happens to many people.

Often people aren’t aware it has happened to them until they try to obtain credit and are refused. If you regularly obtain copies of your credit report you can be aware of it happening sooner rather than later, and give the police a better chance of catch the perpetrator.

Another reason that you might want to request a copy of your credit report is to be aware of any outstanding debts that you may have incurred and forgotten about, that could affect your credit rating and credit score.

Every time you pay a debt late, it is added to your credit record. This can impact your life in a number of ways. Either your credit score can be so low that you are refused credit, or your score is lower than it could be and you are charged a higher interest rate by lenders, costing you extra money in the long run.

The most common reason that people request copies of their credit reports is simply to make sure that all the details contained in it are correct. Often the companies make mistakes. If an old debt that has been paid off is still on your report, it may pull your overall credit score down, so it is worth removing.

Likewise, if your credit card limit is recorded as lower than it actually is, then this could bring your credit score down. For example, if your limit is $10,000 on your credit card, but you maintain the balance at $1,000 this will help boost your credit rating. If, however, the limit has falsely been recorded at $1,000, then it will seem as though you are constantly near the limit, which will lower your credit score.

When Should I Request A Copy Of My Credit Report?

If you are about to make a major purchase that requires credit, it is a good idea to check your credit report first, so that you know where you stand, and what kind of interest rates you can expect.

It also gives you the chance to correct any details that may be wrong. It is recommended that you check your credit report at least once a year to prevent identity theft. As they say, prevention is better than the cure.