The folks at TransUnion Canada were nice enough to furnish us with this article. Thanks Stacey!!
3 Things You Need to Know About Credit
Whether you are buying a home, improving your credit, guarding against identity theft, starting from scratch or just curious, there are a few things that everyone should know about credit. The following three facts are commonly misunderstood but key to keeping your credit healthy.
1. Checking your credit is safe - Contrary to popular rumors, checking your own credit data will not harm your credit score. Damaging hard inquiries only occur when a lender or creditor checks your credit for the purpose of an application. You can safely check your own credit profile and credit score as often as you like without worrying about damaging your credit.
2. Keeping active is key - One of the most important things you can do to keep your credit healthy is to use your credit actively. Use at least one credit card each month and pay all your bills on time in order to consistently add new positive information to your credit profile. If you allow your credit cards to go dormant or close too many accounts, this positive reporting slows down and your credit score could drop. The longer you keep up your stable credit activity, the better your credit score will be.
3. It's up to you - Creditors and credit reporting agencies work diligently to maintain accurate records on consumers, but with millions of updates being made each day, mistakes can happen. When it comes to credit profile accuracy, your input is crucial. Only you can identify and report certain kinds of inaccuracies, including errors made by your creditors and signs of identity theft. Review your credit profile regularly to check that the information reported is accurate and file disputes when you need to make corrections.
It?s important that everyone understands these three facts, but this isn't all there is to know about credit. You can all about credit in transunion?s Credit Learning Centre today!
Once again, thanks to TransUnion Canada for supplying us with this valuable credit information.
3 Things You Need to Know About Credit
Whether you are buying a home, improving your credit, guarding against identity theft, starting from scratch or just curious, there are a few things that everyone should know about credit. The following three facts are commonly misunderstood but key to keeping your credit healthy.
1. Checking your credit is safe - Contrary to popular rumors, checking your own credit data will not harm your credit score. Damaging hard inquiries only occur when a lender or creditor checks your credit for the purpose of an application. You can safely check your own credit profile and credit score as often as you like without worrying about damaging your credit.
2. Keeping active is key - One of the most important things you can do to keep your credit healthy is to use your credit actively. Use at least one credit card each month and pay all your bills on time in order to consistently add new positive information to your credit profile. If you allow your credit cards to go dormant or close too many accounts, this positive reporting slows down and your credit score could drop. The longer you keep up your stable credit activity, the better your credit score will be.
3. It's up to you - Creditors and credit reporting agencies work diligently to maintain accurate records on consumers, but with millions of updates being made each day, mistakes can happen. When it comes to credit profile accuracy, your input is crucial. Only you can identify and report certain kinds of inaccuracies, including errors made by your creditors and signs of identity theft. Review your credit profile regularly to check that the information reported is accurate and file disputes when you need to make corrections.
It?s important that everyone understands these three facts, but this isn't all there is to know about credit. You can all about credit in transunion?s Credit Learning Centre today!
Once again, thanks to TransUnion Canada for supplying us with this valuable credit information.
