| the importance of checking your credit rating. | | | | result more than 25% of all credit reports have errors |
| Your credit score changes every thirty days therefore | | | | that cause low credit risk people to get denied. Do I |
| you should periodically check it to ensure accuracy. | | | | have your attention yet? |
| Each one of your creditors reports your monthly pay | | | | Most people think that checking their credit this often |
| habits and fluctuations in the amounts you owe them. | | | | will hurt it. This is completely false. There are two |
| Since creditors report any changes with your credit | | | | types of inquiries. A "hard inquiry" is when you apply |
| report every 30 days, you should probably check your | | | | for credit and the creditor pulls your credit report. This |
| credit once quarterly. We've heard some people say | | | | type of inquiry can have a negative impact on your |
| to check it monthly but feel that is a bit obsessive | | | | credit rating. When more than four hard inquiries are |
| compulsive. | | | | reported within a 2 month period your could see a |
| You are probably thinking why in the world would I | | | | drop. There is a grace period of two weeks when |
| want to check my credit every three months. Well | | | | shopping for a mortgage, or a car. The scoring system |
| consider this possible scenario: your mortgage | | | | understands that most people will shop around for the |
| company accidentally reports a late payment on your | | | | best deal and therefore hard pulls within a two week |
| credit report, and you actually were not late. Because | | | | window are counted as one. |
| of this mistake on your creditor's behalf, your credit | | | | A "soft inquiry" is when an existing creditor grabs your |
| score just dropped a hundred points. Now you find | | | | credit to approve you for special offers or you |
| yourself at a car dealership that lured you in on the | | | | request a credit report yourself through one of our |
| zero percent financing offer and because you weren't | | | | affiliates. Soft inquiries do not lower your score so |
| monitoring your credit report you don't qualify for the | | | | there is no reason not to take control of your credit |
| special offer. This creditor's mistake just kept you from | | | | report. Save yourself the potential embarrassment of |
| getting an interest free loan. Most don't realize that this | | | | a credit denial but more importantly make sure you are |
| is a common mistake. People make mistakes and as a | | | | getting the best terms on loans by having great credit. |