Credit Report Review is an important tool for ascertaining ones fiscal health. There are many credit report laws, which govern the rights of the consumers. One such law, which makes it obligatory for the credit bureaus to make the credit reports available to the consumers, is the FCRA or the Fair Credit Reporting Act.
The consumer reporting agencies are required to furnish details of the credit report of consumers annually. The credit report influences an individual’s well being to a great extent.
The credit report rating conducted by the different CRA or the consumer reporting agencies rates consumers to estimate the creditworthiness of the consumers.
Prominent consumer reporting agencies:
There are three prominent consumer reporting agencies, rating consumers on credit reports.
As per norms laid by the FCRA, these credit reporting agencies are not allowed to furnish details of the credit reports on their respective websites. Providing information pertaining to credit report over the telephone, email or fax is also prohibited. Details of the credit report can be made available only through a centralized information center.
Importance of credit report review:
Credit report review is important to be carried out from time to time. If someone has had a bad credit rating, repairing the same is very essential for availing credits in the future. The outcome of a credit report rating can be positive, negative or neutral. Credit report review determines whether an individual can avail of different benefits. For instance, after looking up at the credit report review, if it is found that the credit rating score is less, one is barred from availing many benefits. These benefits may include lower rates of interest, renting premises, getting employed at a place of ones choice. On the contrary, if the credit report score is high, one can avail loans of any type at a comparatively lower rate of interest. For such reasons, it is always advisable to carry out credit report review from time to time.
Another important benefit of reviewing credit report is that, if there are any errors in the credit report, a consumer can bring this to notice and can get the error rectified. A certified credit report reviewer can go through the contents of the credit report. If it is found that incorrect information has been furnished in the report, the same can be edited.
In the event, when an individual applies for a free credit report from consumer reporting agencies, education materials are also provided to the consumers. These education materials explain as to how an incorrect information needs to be handled, the steps which are required to be taken in case of identity theft.
Advantages of credit report review in a nut shell:
To overcome theft of identity and fraudulent practices
Correcting inappropriate information
Improve credit rating score
Understanding credit report rating score and taking necessary steps as per the situation demands.