Sunday, 29 January 2012

Preparing For a Credit Check - 5 Steps to Success

By Rob Hasmurth


The list of businesses that do a credit check is continually increasing. And these days it seems like everyone is doing a credit check from banks to landlords to employers and even insurance companies. Before you put in an application, there are some key things you can do to prepare for a credit check.

Check your credit yourself first.

The very first thing you should do is order a copy of your credit report and review it first. By law you're entitled to one free credit report each year from each of the 3 major credit bureaus. You can get your free credit report by going to annualcreditreport.com. and filling in the required details. Or if you don't have internet access, you can always request it via snail mail. This is one of the most important parts of preparing for a credit check and should be done a few months in advance, if possible.

Check your credit score

Also, your credit score will be checked as part of your credit card and loan application. So when you're getting ready for a personal credit check, make sure you do this as well so that you have a good idea of where your credit stands.

Dispute inaccurate information.

Negative information on your credit report can hurt you when companies are doing their credit check on you. And it's impossible that the information was put there by mistake. So before you get a credit check done, submit your personal credit report back to the bureaus to have the inaccurate information removed. Also, you may be able to dispute the information after your credit check has gone through, but you need to follow up and send an updated copy of your credit report to whatever institution was doing a credit check on you.

Payoff any past due accounts

If any of your accounts are past due, take the time to get them straightened out at least 30 days before doing your credit check. That should be enough time for the bureaus to update your credit report. And when it comes time for the actual credit check to by done by the loan company, your delinquent accounts should be updated.

Follow up on unfavorable credit checks.

Not all credit checks will turn out the way you want. When a business makes a negative decision dependant on data within your credit profile, you're given the chance to see that credit file for free.




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