Since the advent of computerization credit organizations have amassed an amazing
amount of information on consumers and details if their financial transactions.
In case you’re not aware, this data kept by credit agencies may affect you more
than you think; in fact it can seriously affect your life because you often
don’t know what’s on your credit file.

Credit organizations can analyze and act quickly on this information and you
could be caught out if applying for a loan or credit card. Previously consumers
sat down with a human person from their loan processor and discussed the
possibility of credit approval for a loan or credit card. This enabled the
consumer to correct or challenge any wrong information.

Now applications are completed online and whether this is right or wrong, good
or bad, this is the twenty first century and the fact remains inaccurate entries
can occur and you could be denied an opportunity because you have no idea how
the decisions entered in your credit file were arrived at.
It’s important for consumers to understand what happens with credit because
opening a bank account, applying for a loan or even an overdue bill, and many
more transactions are all recorded on your credit report. Information is also
kept on where you live, your history of loan payments, how you manage your
finances and if you have any criminal history.

All this is used to assess your credit worthiness and a credit score is applied
to you; so by understanding how the system works you can control the things
which are within your power to do so – because something as simple as missing a
few bills while on vacation could seriously affect your ability to obtain credit
in the future.

Getting your Credit Report

There are three major credit reporting agencies – Transun, Experian and
Equifax.. The Federal Government mandated in 2005 that these agencies must
provide individuals with a free copy of their credit report once a year.
You can obtain your free copy by phone on 1-877-321-8228 (toll free); via the
internet at annualcreditreport.com; or by sending a request by mail to Annual
Credit Report Request Service, P O Box 105281, Atlanta GA 30348-528. You will
need to provide your name and address, your Social Security Number and date of
birth to identify yourself, as well as possible former addresses should you have
recently moved.

Obtain copies from all three credit organizations and check every item carefully
for accuracy and that they belong to you because the reports may not contain the
same information. Government regulations can also affect your personal credit
and these can be federal, state or local because changes recently made at
federal level have had an effect on every person with a credit card who hasn’t
paid off their balance each month.

Government increased the minimum amount credit card companies must charge each month so the monthly amount due went up but consumers didn’t change their payments to match. So stay in touch with regulation changes.

By getting your yearly credit reports and taking action to deal with any
problems on them will better reflect your credit worthiness and give you the
opportunity of managing your credit for a better credit rating.

Author: Carmel Muggeridge. Carmel is owner of a website http://www.creditcard-library.com offering a wide variety of secure credit card applications