Welcome to another blog post on preparing your credit for approval success in 2015!
On this post I want to talk briefly about verifying your identity information on your file, but before I do that I want to recap my last blog post which you can read here: 31 Credit Tips for 2015 – Tip #3 – KNOW and UNDERSTAND your credit score
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I explained what the numerical value of your credit score is and what it means.
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I explained why lenders use your score when making credit decisions
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I explained what you needed to do to increase your score and I gave examples of this.
So for todays post we need to ensure that we are verifying our information on our report. We want to give ourselves the best odds for approval so we want to make sure that everything on our file is correct. I have clients that will pay me just to verify and correct identification errors on their report. Moreover, this is extremely important because if the information that identifies you is incorrect or not in alignment with your state issued identification this can cause lenders to ask questions, or even deny your credit application. Every time you apply for a loan the information on the application is reported to the credit bureaus. They in turn report the addresses used, which is why when you pull copies of your credit report you will see different addresses show up on your file. This often times goes unnoticed and is another maintenance item that you should pay attention to.
Also consider that every time you apply for credit or a loan, the lender will run your credit report using your social security number. Social security numbers are used by the major credit reporting agencies and lending institutions to monitor and track your credit history, and your social security number also ties your identification to this 9-digit number. Your social security number is associated on your file with your name as well as your address. You can have multiple addresses show up on your credit profile, and this typically occurs when a person relocates to a different address.
Consider also that information from collection agencies and other public records are compiled onto your report. This is extremely important because if there is fraudulent activity on your report you want to be sure you can dispute it quickly without any issues. Also, the spelling of your name could be like someone else name. Same name, different social security number, however this still needs to be managed because it is possible that identities can get mixed.
One of the biggest reasons to ensure that you provide complete and accurate information to the credit bureaus as well as on your credit applications is because of identity theft. Identity theft is a huge issue that costs consumers and lenders billions of dollars a year. Identity theft is committed when someone steals your personal information — such as your name, Social Security number and date of birth — typically to hijack your credit and use it to open up new credit accounts, take out loans in your name or access your bank or retirement accounts without your knowledge.
An identity thief can even use your personal information to steal your tax refunds, seek medical services or commit crimes in your name. When you consider things like your health records, these are huge targets for thieves because they contain everything a person needs to know about you. To the black market your identity can be worth thousands if not hundreds of thousands of dollars. Take as much caution as necessary to safeguard and protect your identity. Always keep your ID’s in a safe place. Lock up birth certificates and social security cards, and ensure that passwords that you use on your personal computer as well as for logging in to websites is complicated and secure.
PROBLEM: Inaccurate identity information on my credit profile and I also want to ensure that every time I submit an application, the information is correct.
SOLUTION: You need to ensure two things:
1) Pull a copy of your credit report today and verify that your identification information is correct. You can do this at www.truecredit.com or www.freecreditreport.com
2) You need to ensure that when you are submitting an application for credit that the information you submit is identical to what is on your report. You won’t get denied per see if you move or use someone else address for whatever reason, but over time you will have a report where different addresses are appearing on the report. You always want to ensure that you are aligning your address and your name with your credit report, which is tied to your social security number.
2015 CREDIT RESTORATION PROGRAM
If you are interested in our Credit Restoration Program where we consult our clients on restoring their credit profiles to align with their personal and professional goals email me now at dean@deancantave.com with the subject line, “Credit Coaching/Consulting Services” to schedule a 30-minute consultation. I want to START you off on the right foot in 2015!
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