Understanding your credit is an essential component of being financially fit. Credit worthiness is not only used to determine whether or not you can receive a loan from a lending institution and to determine interest rates for loans that are offered to you. Your credit standing can impact many factors of your life. Insurance agencies, utility companies and employers often review your credit. How well you manage your credit is viewed as a method to determine how well you manage other aspects of your life. The reality is… your credit score is often seen as a reflection of you.
It is important to review your credit periodically. There are three major credit reporting agencies in the United States: Equifax, TransUnion, and Experian. Your credit report includes personal demographic information; information about your payment history; account types; account balances; credit inquiries; collection and public record (ex. Bankruptcy and/or lien) information. It is your responsibility to ensure information on your credit report is accurate. You are entitled to one free credit report from each agency annually. You may receive your free credit report(s) via www.annualcreditreport.com. Any incorrect information may be disputed with the appropriate credit agency.
By understanding more about how credit works and how to deal with debt that you might incur, you take control of your financial wellness. Learn more using these resources.
Credit, Loans and Debt - Federal Trade Commission