Library of Congress Federal Credit Union

Anytime you finance a new car, try to buy a home, start a new job, or attempt to negotiate your insurance premiums, someone is going to be checking your credit. What they find can directly affect how much you pay for a loan, whether or not you get hired, and so much more. It can even be used on a rental application. Here are the five reasons why you should review your credit report now.  

First Step: Get a Copy of Your Report
To get a copy of your report, visit annualcreditreport.com or call 877-322-8228. You are allowed one free report from each of the three reporting agencies per year.

• Find and Fix Fraud
  When you review your report, look for signs of fraud and identity theft. This could show up as accounts you didn’t open, inquiries from companies you have never dealt with, as well as balances on credit cards that you don’t own. If you find fraud, fix it by reporting it to the credit reporting agency. You can report fraud online with the reporting agency or call Experian at 888-397-3742, Equifax at 800-997-2493, and TransUnion at 800-888-4213.
• Improve Your Credit Score
  To ensure your credit looks as good as possible when you need it most, keep an eye on it. By tracking your credit, you can improve your credit score over time. To help boost your score, monitor your credit for any late payments, too many credit accounts, too much credit per account, and credit inquiries you didn’t approve.  
• Identify and Fix Errors
  Credit reporting agencies sometimes receive inaccurate information from creditors, banks, and more. When that happens, it can end up affecting your overall credit report. Look over your reports for errors such as accounts you didn’t open, accounts that have been closed but now appear to be open, as well as payments that appear to be late (when they were paid on time). If you find an error, get it fixed by contacting the reporting agency. 
• Plan Ahead
  Financing a home or car takes good credit. Even if you are approved with mediocre credit, you’ll likely pay a higher interest rate, which will cost you more over the life of the loan. Anytime you’re about to make a large purchase with credit, review your credit report and fix any errors.
• Improve Your Financial Future
  Your credit report gives you a good look at your past, but it can also help guide your future. Missed payments, carrying too much credit, relying on credit to pay bills, and carrying a balance on one or more credit card can negatively impact your score and creditworthiness. To help save money on future loans and improve your chances of approval, change how you use credit. Never missing a payment, paying off credit cards every month, and ensuring your income is far beyond your credit use can help boost your financial future.   

We’re Happy to Help You Read Your Credit Report
If you need help going over your credit report, stop by, call, or email us. We’ll schedule a time to go over your report with you, help you spot errors and possible fraud, and share tips on how to make improvements.  

Stories From the Stacks is Designed For You

The Stories from the Stacks blog is for everyone. From those facing financial challenges to those who simply want tips or a better understanding of their relationship with money, this is designed for anyone interested in advancing their financial life story. Let us know what topics you’d like us to explore next!