Risk management is a big part of doing business these days – because filing lawsuits and insurance claims has become almost a hobby for some people.
For many businesses, extensive paperwork tops the list for risk management. It covers things such as outlining job requirements in detail so that no one can claim discrimination for not being hired for a job they can’t do. Hard to imagine, but people in wheel chairs have tried to sue when they aren’t hired for jobs that require tasks such as carrying boxes up and down stairs.
Non-profit organizations have to require volunteers to sign paperwork making themselves responsible for their own safety and promising they won’t sue if they get hurt while volunteering.
Mortgage lenders manage risk by lending only to individuals with high FICO scores, and by requiring anyone with a down payment under 20% to purchase mortgage insurance – which is a very good reason to begin saving for your down payment right now if you’re planning to purchase a home in the future.
Of course, we all know that they let down their guard in past years, ignored some of their own risk management guidelines, and now are facing huge losses as thousands of homes go into foreclosure.
So what does that have to do with your credit report? It needs risk management that you can accomplish in several ways:
· First, by limiting the percentage of available credit you use on each of your credit cards. Keep it under 30% if at all possible.
· Second, by paying all accounts on time.
· And third, by regular monitoring. If you don’t check it often, it could contain information that will send your FICO scores plummeting and prevent you from getting credit you need when you need it.
Imagine your shock if you apply for a mortgage loan and learn that your credit scores are too low because someone, somewhere, mis-entered a number and you have someone else’s unpaid account on your credit report.
Even worse, you could suddenly be hit with the discovery of identity theft. You could have several credit cards and accounts that you don’t even know about – with bills going to an address that doesn’t belong to you.
You won’t know until you apply for a loan – unless you check your credit report regularly.
Why not take a minute and do it right now. Hopefully you’ll find that all is well and you’ll sleep better tonight. And if all is not well, you’ll be thankful that you’ve found out now and can take the necessary steps to correct all errors long before you need that credit.
Author: Marte CliffCreditScoreQuick.com is your on-line resource for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness