Final answer:
When reviewing your credit report, you should check for incorrect personal information, unauthorized accounts, and inaccurate payment history. Addressing these errors is critical to maintaining a healthy credit score. The correct answer to the question is option 4) All of the above.
Step-by-step explanation:
When you order your credit report, it's crucial to thoroughly review it for any potential errors that could affect your credit score and financial well-being. There are several types of errors you should be vigilant about, which include:
- Incorrect personal information: This may include wrong names, addresses, or social security numbers, which could mix your credit file with someone else's or be an indication of identity theft.
- Unauthorized accounts: Look for any accounts or lines of credit that you don't recognize. These might have been opened fraudulently by someone else using your identity.
- Inaccurate payment history: Ensure that your payment records are correctly reported. Late payments, defaults, or collections that aren't yours must be disputed.
By monitoring your credit history for these red flags, you can catch signs that your identity may have been compromised. Remember to provide only the minimum information required by any source, be cautious about how your information is used, and understand who will have access to it. Addressing errors on your credit report promptly can help protect your credit score and your overall financial health.
The correct option is 4) All of the above, which means reviewing your credit report should encompass checking for incorrect personal information, unauthorized accounts, and inaccurate payment history.