It’s important to know your credit history

Wed., Dec. 15, 2004

David Uffington King Features Syndicate

If you pay your bills on time, keep current on all outstanding accounts and never default on a loan or fail to make a mortgage payment, you might expect your credit record would show you to be the very model of personal financial responsibility — someone to be welcomed with open arms by anyone with a product or service to sell or rent to you.

However, some people learn the hard way that their credit records show them as financially irresponsible, which is why they may be surprised (shocked is the better word) when they’re turned down for a mortgage, or a low-cost loan, or getting an apartment or a job.

The bad mark (or marks) may be caused by a bill you forgot you paid late, or a check you inadvertently bounced. Someone may have made a mistake that should have been corrected but wasn’t. Owning too many credit cards could also make you a credit risk even if you keep current on the balance for each. The reasoning is that you may be overextended, and if you should lose your job, for example, you might not be able to maintain your payments, making it risky to extend your debt standing. These and other factors could cause a red flag to go up when your credit history is reviewed.

To avoid credit shock, check your personal credit record once a year — more often if you’ve had a problem with a bill or a bounced check, or if any of the above applies to you.

To learn more about protecting your credit, the FDIC offers a free publication called “Your Credit Record: A Report Card on Your Personal Finances.”

It provides valuable information on guarding against identity theft, avoiding simple mistakes that can affect your credit history, how to obtain free copies of your credit reports and remove incorrect information, and more.

For a copy, call toll free at 1-877-275-3342 or go online at www.fdic.gov.

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