Credit Report

If you have a credit card then you have a credit rating.
Virtually everyone has some sort of credit history no matter how many or what type of credit card(s) they have and how often they use them and for what. Your credit rating to the fullest extent determines how much buying power you have. This determines what you can buy and at what cost. In spite of what's at stake, most people don't manage their credit properly if at all. They use their card and they make a payment, sometimes only the minimum. But what if you want to buy a home or a car? What if you want to increase your credit limit or reduce credit card interest rates?

Because your financial mobility is determined by your credit rating, it's important to understand the necessity of credit management. How can you maximize your buying power if you don't even know how your credit rating is perceived by creditors and lenders? Knowing your history gives you more bargaining power and can even improve your credit history. For example, Michael, a 42-year-old carpenter decided that he wanted to build an addition to his home but needed a higher limit on his credit card in order to charge some large purchases. He decided before calling his credit card company, to obtain his credit history to see what his credit score standing was. He made his credit card payments on time so naturally he assumed that his credit rating was satisfactory but he thought it was best to be certain. What Michael didn't realize was that the three times he transferred his balance from one credit card to the next it affected his credit score standing. He also didn't realize that the length of time he's been employed by his current employer also influences his credit rating. Because he had only been at his current job for just over six months, he decided to hold off until the one-year mark in order for his scoring to improve. Not only that, but he noticed that one of his old credit card accounts he thought he had closed was still opened and actually had a tiny balance remaining. Michael still had the statement from his old account and was able to prove that he had in
fact paid in full and closed the account. Because of his awareness of this error, he was able to dispute and rectify the mistake. This too improved his credit standing. His credit wasn't perfect by any means but it was accurate and much improved. By understanding his credit past he was able to shape his financial future. When he knew he had a stronger credit standing he felt confident asking his credit card for a higher limit.

By purchasing his credit report, Michael is also able to monitor and protect his credit with the added security against credit card fraud. It's something that happens every day and Michael isn't immune to it just as the rest of us aren't. Anytime a credit card or loan is opened in his name, Michael is immediately notified.