Credit reports can cause a more trouble than just a failure to obtain credit

.Most Americans are now aware that every financial transaction in which they engage is recorded on a credit report. These reports, maintained by the three major credit bureaus, indicate whether or not a consumer pays bills on time, borrows money within his or her means and whether or not they have ever been evicted or have filed for bankruptcy. The system works well as it offers lenders a rapid means of determining whether or not a prospective customer is a good risk for a loan. That’s great if you have a good credit report. But if you have a problem report, even if the entry is a mistake, you can find yourself without a place to live.

Many landlords, both the mom and pop type and the large corporations, typically run credit checks on people who apply to live in their rental properties. This process helps protect landlords from risky tenants who might leave without paying, cause trouble in the neighborhood or damage the property in some way.

Someone who has filed for bankruptcy or has been evicted from rental property in the past may have trouble finding a rental property in which to live, as most landlords will not rent property to someone who has previously been evicted. This can be quite a problem for someone with problems on his or her credit report, even if the problems were caused by a mistake. If you cannot buy a home and no one will rent to you, you may end up homeless. A recent case of a California woman comes to mind, as she has been homeless for some six months as a result of a dispute over rent that was erroneously reported as an eviction on her credit record. She has been living in her car ever since as no one will rent to her, considering her to be a risk.

What does this mean for the average consumer? It means that keeping your eye on your financial history regularly is of vital importance. Granted, most Americans now own their property instead of renting, but similar problems can arise for anyone looking for a job as many employers screen prospective employees for financial problems prior to hiring them. If you have a bankruptcy in your past, you may have trouble even finding a job, even if the bankruptcy listed is the result of an error.

You can obtain a copy of your for free at annualcreditreport.com, a Website established by the three major bureaus for this express purpose. You may obtain one report per bureau per year and you would be wise to do so. An uncorrected error could leave you both broke and homeless.

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