Posted by Mike Smith :: October 29, 2007 @ 7:21 am

As I mentioned on a previous post on the Lending Club blog, regular review of your credit report is critical because your credit report data will affect your applications for mortgages, car financing, credit lines, and p2p loans on Lending Club. When reviewing your report, it's important to keep the following in mind:

You Actually Have Three Credit Reports
Many people make the mistake of thinking that each of the three major credit reporting agencies, Experian, TransUnion and Equifax, all contain identical records. While their records do generally contain much of the same information, it's important to thoroughly check all three reports, since there are often some discrepancies. By ensuring accurate information is contained in all of the reports, you maximize your credit score potential.

Fixing One Report Doesn't Fix Them All
When you do find errors in your credit report, remember to have that information corrected in every report that contains the error. Too many people think that by fixing it in one place, corrected information will eventually make its way to all three.

Paying Off Bad Items Doesn't Remove Them From Your Report
While the three credit reporting companies are all generally helpful in correcting inaccurate information, they won't remove true information from your report. So if your report contains an account with late payment history, or a similar negative characteristic, paying off or closing the account may bring it back into good standing, but it won't remove it from your report. According to The Truth About Credit Cards' website paid/closed accounts will remain on your credit report for 10 years after they are closed.

It's important to take all of these points into account when monitoring your credit report, but they're just a starting point. You need to be active in staying on top of your credit. Review your report at least once a year and be sure to correct any errors in all places where they occur. Only through your continual review and action will you earn all of the credit that you deserve.