Good credit depends on proper credit reporting

Don't think good credit is important? Wrong. Good credit is essential if you want to qualify for loans to buy a business, a new auto, a new home. Bad credit costs. Getting your free credit report is of little value if you don't know how important correct credit reporting methods are to your financial health.

Hear what these three credit expert resources are saying on the subject of credit reporting:

From www.Experian.com:

Credit Check: Why Should I Care?

Why is it important to check your Experian credit report regularly? Many people frequently pay attention to their credit scores when they buy big-ticket items such as a new car or a home. While these are some of the most familiar reasons consumers monitor their credit reports, credit scores and reports actually are used for many other reasons as well. A good credit score can get you better rates on common necessities such as car insurance premiums, cell phone contracts and apartment rental agreements. Some employers even check prospective employees’ credit reports before making final hiring decisions. In addition, despite increased public awareness of identity theft, the crime continues to grow. Therefore, monitoring your credit report and score has never been more important.

From the FTC:

Having a good credit report means it will be easier for you to get loans and lower interest rates. Lower interest rates usually translate into smaller monthly payments.
Information about you and your credit experiences, like your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report. Using a statistical formula, creditors compare this information to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor. A total number of points — a credit score — helps predict how creditworthy you are; that is, how likely it is that you will repay a loan and make the payments on time. Generally, consumers who are good credit risks have higher credit scores.

From the website www.debtworkout.com:

Many of those unfamiliar with credit reports share a mistaken belief that credit reports display a near perfect accuracy. In reality errors on a credit report occur with alarming frequency. Reporting agencies rarely verify or cross check information unless they have a specific reason to do so. Therefore it becomes the obligation of each individual to verify the accuracy of their own credit report and begin the process of correcting inaccuracies of the credit report.

Learn more with these resources available from Amazon.com and take action to fix credit and boost your credit score as soon as possible:

The Road to 850: Proven Strategies for Increasing Your Credit Score

You're Nothing but a Number - Why achieving great credit scores should be on your list of wealth building strategies

Credit Report and Score: Secrets of the Credit Reporting Agencies