Errors could ruin your credit

Even if you pay your bills on time and manage your credit, there are other forces that can still drag your credit score lower. Among those errors in credit report, credit record thefts, large medical and other bills that hurt seniors and co-signing loans for others could cause your credit score to go down. Growing number of prospective employers are checking into applicant’s credit reports prior to employment.

Recent review of credit data reveals that one in five credit reports contain errors. Instead of paying for thousands of dollars for someone else to check your credit report for errors, you can do it yourself. You are entitled to get a free copy of your credit report from each of the three (Equifax, Experian and Transunion) credit reporting agencies once a year. Stagger your report throughout the year and review it for errors. If any errors are found write to the credit reporting company to get it corrected.

If you have any open credit cards with no balance owed, do not cancel those credit cards. They help to get a higher FICO score. Credit reporting agencies may not provide you with your FICO score. You can sign up for those companies that provide free FICO scores for limited time periods.