Do You Recognize the Importance of Monitoring Your Credit Reports

Credit reporting and monitoring is often times an overlooked aspect of credit management. With our busy everyday lives it is easy to see why this happens. But just as our physical health requires routine check-ups, so to does our financial health. You will understand the importance of credit monitoring when you consider the following:

Experts estimate, and the statistics bear out, that up to 90% of credit reports contain inaccuracies of some form or another. Your credit report is comprised of information gathered by the three credit bureaus, TransUnion, Experian and Equifax. At any given time there could be incorrect (negative) information added to your credit report by any one, or all  three reporting bureaus.

The three bureaus operate independently of each other which means that information that appears on your Experian report may not be on your TransUnion or Equifax report. In fact, it is not at all uncommon to see your credit scores vary by 50 points or more from one credit bureau to the other. That is enough of a range that while you have a good credit rating with one bureau, it may be poor with another. The scoring range goes from 350 - 850 with anything from 720 and above being considered a very good credit score.

How Credit Reporting Ignorance Can Hurt You

When inaccuracies appear on credit reports they can often have a negative impact on the overall credit record. Of course, by not knowing about it it can potentially cause problems when you apply for loans, a job, credit cards, apartment rentals, etc. And let 's not forget that your overall credit score is based on the information contained in your credit report.

As a rule of thumb in the world of finance, surprises are a bad thing. The sooner you discover and repair errant information the better off you will be. let's use an analogy to illustrate this point. Just as with identity theft, you want to detect it as early as possible and take the appropriate steps to repair it. The earlier that the problem is detected, the easier it will be to fix.

Fortunately for us, the Internet has made credit monitoring  relatively quick and painless. By following the simple steps outlined below you will always be completely up to date on any and all activity that is recorded on your credit report.

Order a Comprehensive 3 in 1 Credit Report - A 3 in 1 credit report will contain all the information gathered by all three credit bureaus, Equifax, Experian and TransUnion. The information is sent to you instantly over the Internet where you can view it at your leisure, or print it out and take it with you.

Carefully Review Your Credit Report - The responsibility to finding and fixing errors and inaccuracies on your credit reports lies solely with you. Carefully review each section of the report and make notes if necessary. When inaccurate information is found immediately take action to correct  and/or dispute it.

Sign Up for Credit Monitoring - A credit monitoring service makes it easy to stay on top of your credit records, while affording you peace of mind. It is the job of the credit monitoring service to track activity on all three of your credit reports while simultaneously looking out for evidence of fraud and identity theft.

Cliches like "what you don't know can't hurt you" and "ignorance is bliss" absolutely do NOT apply to the world of credit reporting. But the good news is that quality products and services like the 3 in 1 credit report and credit monitoring are now available to help you stay on top of your credit records