Daily Financial Challenge – Day 3

Now that we have tried to lower the interest rate on our credit cards and learned the most effective way to pay off credit card debt, we will take a slight tangent and learn a bit about our credit reports. Understanding your credit report is important because not only it help you prevent identity theft, your credit report also determines what type of rates you get when you borrow money for a house or car. It’s also used in a lot of other ways these days including whether you are approved to rent housing and even if you get a job. Since this report can affect a number of personal finance areas, it’s worth the time to become familiar with it and understand how it works. By doing so

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13 Responses to Daily Financial Challenge – Day 3

  1. fern says:

    Is it a big deal to correct misspellings of your name, say, like, if there are 3 versions and only 1 is correct?

  2. davis says:

    I would take the time to make sure your name is correct. My last name is common (Davis) while my first is a bit unusual and often gets misspelled. I had it misspelled in my credit report for an account that was mine, but about a year later I started to get accounts for the same misspelled name that weren’t mine in the account. It was a name identity mistake, so I would do the paperwork to change it if I were you.

  3. Caitlin says:

    Huh, I didn’t consider getting one every 4 months…great idea

  4. mjrube94 says:

    Great challenge…I’ve been meaning to do this for awhile and just never got around to it. I especially like that they let you print it right away instead of having to wait for it in the mail. Also, the “one every 4 months” approach is great…I wouldn’t have thought of that myself.

  5. Pattie says:

    I followed this advice recently as suggested by a friend. I was amazed at the inconsistancy in my reports. There were a couple of companies claiming I owed money to and I called each one. I dogged them until they provided as much information as possible. One entry that bothered me was for a bill I had paid off years ago. I let the credit card companies research and haggle for me and they were successful. It helps if you have any paperwork filed away! All in all, I saved myself a lot of money in bills I might have just paid had I not taken the time. I also boosted my credit rating! This is definitely well spent time! Misinformation is not uncommon on these reports.

  6. EHadden says:

    If I stagger the reports by 4-months, does that count as ordering 3 reports in a one-year time frame? Or do I get to order one report from each of the companies once a year?

  7. pfadvice says:

    “If I stagger the reports by 4-months, does that count as ordering 3 reports in a one-year time frame? Or do I get to order one report from each of the companies once a year?”

    You can order one report from each company during the calendar year for a total of 3 reports total. You don’t have to get all three reports at the same time.

  8. Sue says:

    I have kept up with the challenge……….love it. Feels so right, January, New Year & such.

    I didn’t find any glaring errors, but was amazed at 23 open accounts. Only a handful that have had any activity in the recent years………but 23! Seems like a bad idea to me, and I had already decided in my head to call & close out some of the antique ones. But, then I read here in the forums, that the number of accounts & the ones that go back years are actually good?? So, I’ve left them alone, against my little voices telling me to clean this up!

    I did make some big changes the other day on the charge cards I have. I was also amazed to see the total of all 3 cards. TOO MUCH! I’m paying the worst one off first, per the directions of the challenge. Then, have a new card coming with the zero % interest for transferred balances……….think I can get that one paid off in a year……and then I’ll just have the one I use anyway. Will commit to paying it off monthly. Feels so good!!! Thanks much for the push in the right direction.

    Can’t wait for the next daily challenge!

  9. Gloria says:

    This is a good idea. It really does help and it its about time for me to do it again so thanks for the reminder.

  10. flash says:

    While there is a benefit to having open lines of credit with no balance, there is a risk assessed against ancient accounts with no activity. This is my DH’s expertise, not mine, but even for id theft risk, close the old accounts. Not just shredding the card (who can find them?) but canceling.

    Newer accounts that show a credit line and a history of payment, and lack of use, are a benefit to your credit. Again, my DH’s expertise, but we have a great credit score, so I trust his knowledge.

    Jeff, nice challenge. I wasn’t here for the previous daily’s, but these are great!

  11. flash says:

    Regarding names, it is very important. My DH’s first and surnames are identical to a person with very bad credit, and other history, and DH is extremely careful to use his full name on anything involving credit and finances.

    Another thing to consider…his name is identical to his father’s, and mine to his mother’s (no kidding). While we were poverty grad students, his parents were denied credit when their id’s were confused with ours.

  12. JiggaDigga says:

    Great reading, keep up the great posts.
    Peace, JiggaDigga

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