College 101: The Evils Of Credit Cards

Another year is upon us and like a lot of people you probably have a list of New Year resolutions you are determined to accomplish. Good for you and I hope you are successful with each and every one of them. Some might be easy like giving up sweets or spending more time with loved ones. While others might not be so easy and they might even challenge you to get outside of your comfort zone. These seem to be the ones that get put on the back burner or never attempted at all.

For example, doing an annual review of your credit report to see what your current credit report looks like and what your credit score is. Have you ever looked at your credit report? Do you have good credit or bad credit? Is the information accurate? Do you even care? I guess you do or you probably wouldn’t be reading this!

Having a good credit report is very important to improve your personal finances since it is used for many different reasons. One good reason is that most employers are now running a credit check and looking at the credit report on potential new hires. A very poor credit report might be a flag to an employer that you are not responsible or trustworthy. Of course, this isn’t true for everyone who has a poor credit report since so many factors go into a report. But the potential employer doesn’t know all the details, only that you have a poor credit report.

Having a good looking credit report will probably mean you have a good credit score as well. This can be important if you are looking to buy a house, a car or any other type of large purchase where a loan from a financial institution is going to be involved.

Another reason to review your credit report on an annual basis is to make sure you have not become a victim of identity theft. It seems to be a very common occurrence these days and can happen to anyone. If someone has been using your identity to take out credit cards or loans in your name, you will have to take action to resolve these potentially damaging criminal actions. Don’t think that it can’t happen to you because it can.

If you haven’t done so lately (or ever!) you should go through the process of getting a free credit report. The Fair Credit Reporting Act (FCRA) requires each of the three nationwide credit reporting companies Equifax, Experian, and TransUnion to provide you with a free copy of your credit report, at your request, once every 12 months. The FCRA promotes the accuracy and privacy of information in the files of the nation’s credit reporting companies. The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the FCRA with respect to these credit reporting companies.

There is a government website you should check out, that will provide you the information you need on how to get a free credit report.

Why not take action now and make a resolution to check your credit report while the year is just beginning. Cross it off your list and move on to the rest of your resolutions!