Reasons To Check An Annual Credit Report
The National Credit Act provides South African citizens with the right to obtain their annual credit report, for free. Information contained in a person’s profile has an effect on many areas of a person’s finances, from the cost of housing to the rate of interest on a loan. Both TransUnion and Experian provide free reports, allowing citizens to check their information, and to dispute any inaccuracies.
Multiple inquiries regarding a citizen’s profile may drive down the FICO score. Therefore, citizens should take advantage of free credit report every year, so that they have the opportunity to view their profiles without negatively influencing their scores. If unauthorized sources have been checking a citizen’s profile, then citizens may place fraud alerts on their profiles.
Errors will be found and resolved quickly, when people check their reports regularly. According to recent studies, up to seventy percent of credit report contain errors, because they confuse the right person’s information with another person, who has either a similar name, or a similar account number. Incorrect late payments, for instance, which are recorded on a profile will cause lenders to charge higher interest rates, or to deny applications altogether.
Protection against identity theft is an important reason to review reports annually. Monetary losses from identity theft crimes have topped $50 billion worldwide (R3.9 trillion). In order to prevent identity theft, citizens will want to know if any unauthorized accounts have been opened in their name. Any accounts opened on the profile, which do not belong to the citizen, are indicative of potential identity theft.
People who have co-signed for another person’s loan should check their profile frequently. Any issues with the co-signed loan, such as late payments, could have a negative impact on the cosigner’s profile. Also, people going through divorce should keep an eye on their reports, which will help to ensure that their financial information remains clear, throughout what is often a trying process.
Contacting TransUnion or Experian will allow citizens free access to their profile, once a year. Both bureaux will require citizens to submit identifying information, including proof of residency, date of birth, identity number, and full names. Reports will be sent out via fax, post, or email.
Credit report errors, identity theft, or problems springing from co-signing and divorce, may negatively impact a citizen’s profile. Obtaining a free copy of an annual credit report is one way to catch problems, before significant financial losses occur. When problems are caught early, citizens will quickly clear their names, and maintain access to high-quality financial products.