Why Should I Check My Credit Score?

When to check your credit scores.

A credit score is something important that can factor into several decisions. Whether you are trying to secure a loan, apply for new housing, or a new job, a credit background check could be completed to see if you are eligible. A poor credit score can make it difficult to secure these important items, and your credit score may not be an exact reflection of your credit history. Mistakes on credit reports are quite common. You can get a free copy of your credit report from the three major credit bureaus once a year.

How Is Credit Score Calculated?
Payment history, amount of credit owed, length of credit history, new credit, and type of credit used.  Bankruptcy and late payments are included in payment history scores. Different factors have varying degrees of weight in the overall score.

What Are Some Common Reporting Errors?

  • False identities: Credit agencies have been found to confuse two people with similar names. You are especially susceptible if you have a common name. Confusing your credit score with that of another person can cause credit score issues in many ways.
  • Outdated information: Outdated accounts and transactions may still be showing up on your report even after the legal deadline for their removal.
  • Incorrect transactions: Incorrect payment status for credit cards or other accounts can reflect poorly on your credit score.

You can dispute a credit report error with the reporting bureau, but the process can be long and arduous. People who have a false low credit score can have issues gaining access to living amenities, and have to pay higher premiums on auto insurance. A New Jersey bankruptcy attorney can review your credit report and deal with the credit agencies to make sure your issues are resolved and you aren’t taking on unfair debts.


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