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My Annual Credit Report

By: EconomyWatch Date: 26 August 2009

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My annual credit report, like every other individual’s, is assessed by potential lenders and investors to determine his/her financial health and likelihood of meeting financial obligations. Hence, it is vital for individuals to acquire and evaluate their annual credit report themselves and also understand the factors affecting credit score.

How Do Major Life Events Affect My Annual Credit Report Status

Here are factors that affect my annual credit report status:

Marriage: It helps to open up financial opportunities as you can pool your finances with that of your spouse. It will also improve your credit score. However, your credit rating could be weakened if your spouse has a bad credit report. This may require you to provide financial support to improve your spouse’s score.

Divorce: In case of divorce, inform your creditors and the credit bureaus so as to:

protect your credit report integrity
necessary to delineate your financial transactions from that of your spouse
close joint accounts
pay off balances to maintain a good credit score.

Death of a Spouse: In this case, the joint accounts are not closed automatically. Moreover, a creditor is entitled under law to retain the terms of the original contract. Therefore, you will have to either revise your application or reapply in you own name in case of the death of a spouse.

My Annual Credit Report and Other Personal Events

Other personal events that affect my annual credit report include:

Bankruptcy and foreclosure: This is recorded in a credit report for at least 7 years. These alternatives should only be resorted to only in case of dire need as they cause significant drop in the credit score.

Purchasing a home: Typically, this has a positive impact on your credit report. Its advantage is that it helps to build equity and adds to the net worth. However, a mortgage on house is a huge loan, which substantially increases the debt amount on your credit report.

Layoff: A job loss impacts the credit report and score in a negative way. In case you are laid off or you have quit a job for valid reasons, notify your creditors and credit card issuers immediately. It will help to lower your payments till you acquire new employment.

Credit check position is also affected by personal events that impact your credit and finances. This includes having children, funding your children’s’ college education and co-signing credit cards, and students loan in your name.