EMERYVILLE, Calif., Nov. 14, 2017 /PRNewswire/ -- A credit report is like a report card in the world of debt. It's important to not only stay current with debt, but also make sure that the "report card" reflects true performance. However, sometimes things happen that are out of consumers' control. For cases of fraud or inaccurate reporting, often the best thing anyone can do is catch it early. That goes for all types of finances, even federal student loans. American Financial Benefits Center is a document preparation and financial analysis company that assists clients so they can stay current on their federal student loans, which helps build good credit.
"We work hard to assist our clients prepare documents to apply for an affordable payment plan for their student loans," said Sara Molina, Manager at AFBC. "But there are so many reasons your credit score can change besides missing student loan payments. That's why it's important to stay vigilant and regularly take a look at your credit and check your student loan accounts."
While default and delinquency can tank a credit score, a good payment history can boost a credit score and help anyone qualify for a loan or line of credit. Therefore, it's a good idea for anyone preparing to apply for a loan for any purpose to check their credit score, or pull their credit report, to determine if their credit is on track to impress potential lenders. Even without the goal to secure a loan, financial experts encourage everyone to check their credit report once each year.
Routinely checking credit and student loan accounts can alert consumers of potential issues, even those who feel they're doing everything right. Student loan borrowers can check on their account at any time, and everyone is entitled to a free annual credit report from each of the major credit reporting agencies to look into their credit in more detail.
What could go wrong with credit reports? Publicly posted complaints from federal student loan borrowers on the Consumer Financial Protection Bureau website detail redundant reporting, misreported delinquent or default statuses, fraudulent loan accounts, and more on their credit reports. With the recent large data breaches, including the massive Equifax hack, it's advisable that everyone periodically looks at their report to ensure there are no fraudulent lines of credit in their name.
If student loan borrowers do see anything amiss, they may want to reach out to both their servicer and the credit bureau to dispute the report. Those who believe they are victims of a data breach may also want to freeze their credit report. This deters creditors from seeing credit reports and thus giving out new lines of credit to someone posing as those victims. Anyone can still access their own free report after a freeze.
"At AFBC, the way we help our clients manage their student loans and their credit is by helping them apply for repayment plans that allow them to not miss payments," said Molina. "We also help them recertify their plans every year. While we do a lot, we don't do everything and some things can still go wrong. So we encourage all student loan borrowers, even those who have everything under control, to check their credit reports regularly to make sure everyone is on the same page, and to prevent issues down the line."
About American Financial Benefits Center
American Financial Benefits Center helps clients apply for the federal repayment plan that fits their personal financial and student loan situation. They adhere to strict customer service guidelines and strive for the highest levels of honesty and integrity.
AFBC is a member of the Association for Student Loan Relief (AFSLR), and each representative on the phone has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).
To learn more about American Financial Benefits Center, please contact:
American Financial Benefits Center
1900 Powell Street #600
Emeryville, CA 94608
SOURCE American Financial Benefits Center