Some people work hard to keep their credit score high, marking their calendars to make sure bills are paid on time, and not overusing a single credit card. Other people never check their credit score, pay their bills late, and don’t consider earning a high score a priority.
Whether you’re in Column A or Column B, your credit score may have just gone up. In fact, experts estimate that 1 out of every 9 Americans just enjoyed a credit score bump that could make it easier to get lower-interest loans or credit cards, or even land a job or an apartment.
Related: What If I Had a Zero Credit Score?
The Hidden Reason Why Your Credit Score Just Went Up
The following is a guest post by Jeff Hoyt, from MoneyTips
In April, the three major credit bureaus – Equifax, Experian, and TransUnion – had to remove all outstanding tax liens from our consumer credit reports.
The reason: The Consumer Financial Protection Bureau found that credit reporting agencies often get wrong information when using public records databases.
The result: Your score could have increased without your lifting a finger!
The Detailed Story – Have You Been Impacted?
About 11% of Americans with credit reports will have one of these negative events removed after the actions are complete, according to LexisNexis Risk Solutions, resulting in an immediate credit score increase of up to 30 points. That could save you thousands of dollars in interest if you are planning to buy a home or get you a better credit cards with more perks, like cash-back or free travel.
You can check to see if the change impacted your score for free within minutes using Credit Manager by MoneyTips (the best part? No credit card required). The free membership to MoneyTips also gives you access to Debt Optimizer, which analyzes your debt and suggest simple actions to lower interest rates, reduce monthly payments, and lift your credit score.
Wrong information on credit reports that could lower your credit score isn’t limited to tax liens. In fact, a 2013 congressionally mandated study on credit report accuracy found that one in five consumers had an error on at least one of their three credit reports. If you want to make the most of the money you earn, you should check your credit score and read your credit report.
Don’t Listen to Dave Ramsey…Your Credit Score is Still Important
Sadly, many well-intentioned people aren’t in the habit of checking their credit score and credit report regularly. Think of it as a healthy financial habit, like brushing your teeth. By making the time to do so, you may find an old bill that you thought you paid that’s lowering your score. Or you may find a bill that doesn’t belong to you, but somehow showed up in error on your credit report. As a result, when you apply for a loan or credit card, you have to pay higher interest because companies consider you a bigger risk. Why should you pay for someone else’s mistake?
What if someone tried to steal your identity? The more you check your credit report, the quicker you’ll find out about it, and the easier it will be to right the wrong. By addressing issues like these, you can lower the cost of borrowing money as well as the price of insurance. A higher credit score can also help you land a job or an apartment.
Related: The Importance of Your Credit Rating
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My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.