A credit report and the credit rating of consumer are used more and more in many various different situations. Everybody from creditors to employers to landlords seems to want to check the credit rating of a consumer before granting an application. Some major utility services also check the credit rating of a consumer which determines things like security deposit and promotional offers.
If you are coming up for a credit check at the hands of an individual or an organization in the future here are some steps that you should take in order to prepare yourself the best that you can.
Order Your Own Credit Report
The very step that you should take first is to order your copy of annual credit report. You can get it for free from www.annualcreditreport.com.
Leaving your own credit report will review of your idea of what a creditor will be seen when you review is it. You will also get a chance to examine it for errors and outdated information.
Order Your Own Credit Score
While you can get a credit report for free the same does not apply to a credit score. In most of the situations a creditor looks at the credit score of a person as well as the credit report. If the credit score of a person is bad then looking at the credit report usually does not help. You should order a copy of your own credit score in order to see exactly how your application will look through the lender’s eyes. This
Every consumer has the right to dispute information that is inaccurate on their credit file. If you see that you have negative information on your credit report that is hurting your credit rating while being inaccurate at the same time you can file a dispute with the credit bureau to have the information removed. If you have some negative information removed from your credit report after the credit check then the credit bureaus offer to send your updated credit report to all the creditors that have reviewed it in the last six months.
Improve Negative Information
If you have accounts that are late or delinquent on their credit report then you can ring them current or pay them off to make your credit report look better before you apply for credit in the future. When the credit check is done the delinquent accounts should have been cleared and updated.
Follow up on unfavorable credit check
If a credit check results in an unfavorable decision where your application is demand on the basis of the information present on your credit report, you have the right to access your credit report for free. The lender will provide you with details how to access a free credit report and the credit bureau to access it from. He will also provide you with a letter stating the specific reason that your application was denied. If the reason pertains to inaccurate information present on your credit report you can dispute those errors and ask application be reconsidered. If, however, the information happens to be correct then this will be a good opportunity for you to start repairing your credit.