The things that you do not know about your credit report could actually hurt you, mainly by damaging your financial stability and resulting in you paying more for everything from housing to insurance. A great deal of negative information in your credit report can also cause you to miss out on certain benefits, overpay for everyday expenses, and even make less money than you should. Unfortunately, there are many myths about credit reports floating around so it can be difficult for someone to figure out what is true and what is not true. Here are several things that everyone should know about their credit report and how it will affect them financially.
Not All Payments Show Up On A Credit Report
Many people assume that all of the payments that they are making on all of their accounts are showing up on their credit report. This is not true. Companies report information to the nationwide credit agencies on a voluntary basis, so many small businesses and landlords do not report any information to the credit agencies unless you become delinquent on your payments. If the payments are not reported by the creditor, the transaction will not appear on your printed credit report.
Negative Information Can Be Removed
Most people think that it is impossible to get negative information removed from their credit report and never even attempt to remove the information. Creditors do have the power to remove negative information that they have added to a consumer’s credit file and may be willing to remove information from your file if you have demonstrated a good payment history since. If what is on your credit report is factually accurate, creditors and merchants are under no obligation to remove it, but there is no law preventing you from pleading your case and politely asking for the information to be removed.
Numerous Credit Inquiries Raise Red Flags
Some people believe that they have to open numerous credit accounts in order to have a favorable credit report. They do not realize that every time they apply for a credit product, it actually hurts their ability to obtain credit in the future. Numerous credit inquiries are an indication that you may be desperate to obtain credit and many creditors see this as a red flag to avoid lending to you. It is important to only apply for the credit products that you really need and be selective when choosing credit products to apply for.
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