Archive for the ‘Credit Reports’ Category
Your credit report is crucial to your financial stability and security as it monitors your financial performance and accordingly decides the eligibility for new credit cards or interest rates on loans. Having incorrect entries on your Credit Reports US Government can have a detrimental effect on your credit score and translate into higher interest rates. How can you have these wrong accounts removed? Follow these 5 simple steps and have them removed:
- Check Your Credit Report
- Check The Account Carefully
- Report The Mistake
- Ask For A Receipt Conformation
- Follow Up
Obtain a free copy of the Credit Reports US Government from AnnualCreditReport.com and check it for mistakes and incorrect. Obtain your Credit Reports US Government from all the 3 major credit reporting agencies. Remember that the credit reporting agencies have no centralized method, thus their reports will vary from one another. Just because one of the reports is flawless, it doesn’t ensure all your credit reports will also be error free. Check them for any mistakes and don’t ignore any one of them even though it may seem insignificant.
There are numerous types of wrong account information that can turn up on your Credit Reports US Government. This might include things like, wrong name on the account, incorrect account number or transactions and payments on the account, wrong dates of the transaction, and many more. Therefore, when you go through your credit report, have your bank papers and account statements with you. This will give you something to cross-reference your Credit Reports US Government with.
Once you have found out the account related mistakes on your Credit Reports US Government, it is time you bring it to the notice of the Respective Credit Reporting Agency. Contact them via a letter (not email), attaching copies of the Credit Reports US Government with the mistakes highlighted and copies of documents that will support your claim.
|Use a reputed courier company to ensure timely delivery of your letter to the physical address of the Credit Reporting Agency.|
Remember that the FTC mandates the credit reporting agencies to complete investigations regarding disputes within a period of 30 days. You will need a receipt confirmation from the Credit Reporting Agency to track the period of 30 days. Mention it in the letter to the Credit Reporting bureau that you will need a receipt confirmation from them.
You will need to follow up with the Credit Reporting Agency regarding your claims after a period of 30 days. In case they have not finished the investigation within 30 days, FTC mandates them to accommodate your claim fully without any further investigation. Send another letter to the Credit Reporting Agency stating that you want the claimed report to be removed from your Credit Reports US Government immediately. Attach copies of the previous letter and the confirmation receipt to validate your claims.
In case the Credit Reporting Agency notifies you that they have investigated and accepted your claims, they are required to provide you with another free copy of the revised Credit Reports US Government. Check the new Credit Reports US Government minutely for any new mistakes.
Remember that you shouldn’t ignore the most insignificant of mistakes on your Credit Reports US Government. The wrong entries may also be a result of identity theft. If you find that you are a victim of identity theft, lodge a police complaint and place a fraud alert on your report.
Your credit report not only contains your credit history and credit performance, it also has public information division that shows you in a very irresponsible light. Creditors and various courts report all your financial information including tax liens, bankruptcies, foreclosures and other related matters and it appears in this section. The worst part is that you can’t have this section cleared unless the statute of limitations on the information has expired. Here is how you can do so in 4 easy steps using your free credit report in USA.
Step 1 – Access Credit Report
|Federal law mandates each of the credit bureau to provide you with a free copy of your credit report once in a year on request.|
You will need to obtain your copy of the Free Credit Report in USA by visiting AnnualCreditReport.com to access a free copy of your credit report. Access the credit reports from all the 3 credit reporting agencies to ensure that there is no erroneous information. When you get it, check the public information section of the reports.
You will also need to remember the expiry duration of the public information. A bankruptcy filing stays on your report for a maximum of 10. Similarly, judgments remain on your report for a period of 7 years. In case you ever had a tax lien, it will be reported till 7 years from the date of clearance of the lien. In case you chose to escape payment of the lien, the entry will remain on your report forever.
Step 2 – Determine the Validity of the Public Information
Now that you have found out the public information on your credit report, do you think some of them need to be removed as they are past their expiry duration? Start by gathering copies of legal documents that you have in your possession and check the dates with that on the Free Credit Report in USA. In case you have misplaced any of the legal documents, contact the court in order to obtain a new copy.
Step 3 – Report the Problem
|Request a receipt confirmation from the Credit Reporting Agency as a proof of dispute.|
Did you find out that one of the entries in the public information section is still there despite the fact that it is past its expiry date? You will need to dispute the fact with the respective Credit Reporting Agency by writing a letter to them. Attach your copy of the Free Credit Report in USA along with the letter and highlight the mistakes on it. Also, attach copies of the legal documents that will support your claim. Send the letter to the registered address of the Credit Reporting Agency using a reputed courier service.
Step 4 – Follow Up
Remember that the federal law mandates every Credit Reporting Agency to complete the investigation of a dispute within a period of 30 days. If the agency fails to complete its investigation within this period and reply to the consumer with a decision, they will have to remove the concerned entry without any further investigation.
You will need to keep track of this period of 30 days (using the receipt confirmation) and contact them once the period has expired. If the Credit Reporting Agency accommodates the changes to your credit report, they should to provide another copy of the revised Free Credit Report in USA to you.
Remember that the numerous credit score re-establishment clinics can’t do anything to have the public information removed if the entries are not outdated or wrong. Stay away from seeking their service as that way you will be wasting some hard earned money.
Credit reports have many different names. They are sometimes referred to as a credit file, sometimes a credit history, and often a personal credit report. Regardless of what they are called, periodically pulling your personal credit report is an excellent idea. It gives you the ability to review your credit report, as credit underwriters see it, so that you can have complete control over your financial wellbeing. This gives you the opportunity to check for errors, and if needed, to make corrections to your personal credit report.
What to do if something is wrong? Bear in mind, that statistics have shown that many credit reports have some sort of error in them. You don’t want to get turned down for credit, or even worse, employment, because of erroneous information included in your personal credit report. So what can you do if you find an error? The short answer is to make the specific credit reporting agency aware of it, and by law, it is their responsibility to correct it. That’s right, under the Fair Credit Reporting Act, the burden of responsibility falls squarely on the credit bureau and the company (or person) who reported the disputed information. You are required to kick start the process though, by filing a dispute with the appropriate credit reporting agency in which the erroneous information is included. If you only pulled one personal credit report, it is a good idea to pull the other three now to ensure that if you are going to clear one up, you can clear them all up.
What happens next? Upon notification, the credit reporting agency must launch an investigation within thirty days. They have the ability to throw out your claims if they determine them to be completely baseless. If they do not think that though, then they will commence with sending information to the information provider to verify the debt, and the reporting of the debt. If the information is indeed found to be inaccurate, then the credit reporting agency will send notifications to all three agencies, notifying them of the inaccuracy. If it turns out to be accurate information, then no changes are made. In the unlikely event that the dispute cannot be resolved, then you can ask for a letter of dispute to be placed in your file. Please note that this is informational only, and it does not have an impact on your credit score calculation.
Still not satisfied? If you have the feeling that the credit bureau just simply declared a draw, and you are not satisfied as to how this will be showing on your personal credit report, then you can press the matter a little. The next step would be to go after the information providers directly. We are calling them information providers, but in most cases, we are referring to banks. When attempting to dispute directly with them, there are few items that you should take note:
- Put your dispute in writing. Waiting on hold for an hour to tell a call center representative that you are disputing this information is not the best plan of attack. First, the call center is not designed to handle complex issues like disputes. They are designed to field questions quickly and efficiently. Disputes are muddy, and can hardly be resolved in a matter of a few minutes. In addition, call centers are notoriously bad at following up on issues.
- Never send them originals, only send copies. You never want to send your original into the bank when making a dispute. The fact is that more than likely, they will lose it, or a research representative will not know what to do with it and will park it on their desk for a few weeks, with no one else knowing of its existence.
- Make sure you aren’t sending your dispute to a payment processing center. If you think banks get a lot of phone calls into that call center, imagine what is going on at their payment processing centers. Anything that isn’t some form of a payment will be quickly discarded and probably not followed up on.
Before disputing any information on your personal credit report, be sure that you have all of the correct information to ensure that process is handled correctly.
Although ordering a copy of your free credit report is a good habit, but understanding your free credit report government can be difficult. There are many misconceptions out there today as to what is actually included within your free credit report government. Often times, consumers will order a free credit report either right before attempting to obtain a mortgage or after they have been recently declined for a loan. When doing so, consumers assume that the information is presented in a nice format that includes a credit score. In fact, the information can be difficult to understand and interpret for people without much experience in the matter, and there is no credit score included.So I have my credit report…now what? Let’s assume you have taken the time and have ordered a copy of your free credit report government. Before we even talk about dissecting this information, we should point out that you should order a free credit report from all three of the major credit reporting agencies. Those would be Equifax, TransUnion, and Experian. Fast forward a few days, and you have all three reports in front of you on your kitchen table and you are ready to take stock in what you have. You start looking at it like it’s a tenth grade math exam, and you have no idea where to start. The first thing that you will notice is that there are a lot of numbers on it. I mean a lot. There are codes and abbreviations that seem like something from another world. What to do?
Well, the first thing to do is to understand what the free credit report government is attempting to tell you. There are four main points of communication, or sections, within the report.
- Identifying Information. This is the basic information that would include name, address, social security number, phone number, employer, past addresses, work history, etc. This is to ensure that everyone who is using this credit report is evaluating the same person. It is also helpful for consumers to catch fraud attempts; as fraudsters will typically attempt to change the address to reroute mail.
- Credit History. This is the meat of the report. What is included in this section is your payment history, balances, credit lines, type of debt, etc. When it comes time to for a credit underwriter to evaluate your credit worthiness, this is the main section they use. This section will also have the biggest impact on your credit score, as the two main factors are payment history and credit in use ratios.
- Public Records. This section will hold any adverse information that isn’t necessarily creditor related. For example, if you have an unpaid speeding ticket, it is likely that this bill will eventually show up on public records. In general, this represents judgments against you in which you owe an outstanding balance of some sort. Criminal claims are not applicable in this section.
- Inquiries. This part is probably the most misunderstood section of the free credit report government. The inquiries section tracks when anyone has pulled your credit report for the purpose of making a credit decision. That is why it is important to go directly through the credit bureaus when ordering a free credit report. Pulling the report through any other means will be shown as an inquiry. Why is this important? It is important because each inquiry will deduct two points from your credit report. If you have multiple inquiries over a short period of time, it is typically an indicator that something is wrong, since you are having your credit pulled so often. That is why it is a good idea to supply a copy of your credit report to mortgage lenders, instead of having them pull them, when you are mortgage shopping.
Free credit report government should not feel intimidating when attempted to review them. In fact, you probably already know what is on there since they represent you own credit history. Be sure to take the time and review your credit report fully to ensure accuracy, as statistics have shown that a majority of credit reports from any of the three agencies have some sort of error in them.
Business owners have a lot to concern themselves with. In fact, if you conducted a poll, you will probably see that topics that rank toward the top of the list are sales and marketing, payroll, customer satisfaction, account receivables, and those types of issues. Concerns over their business credit report are probably not anywhere near the leaderboard.
Should it be? One would think that since so much can be impacted by one’s business credit report, such as office rent or financing, that it would be a concern that is closer to the top of the list. In reality, it isn’t. This is because so many businesses fail during the early years that they are more concerned with simply surviving, than worrying about their business credit report. In addition, many business owners just don’t understand business credit. Even if they have a solid understanding of personal credit reports, a business credit report can be extremely different.
To help shed some light on the issue, let’s take a look at how a business credit score is determined. The first thing that a credit agency has to do is obtain information. For individual consumers, this is much easier since the process is refined, and down to a science. For businesses, there are three main sources as to where this information can come from:
- Suppliers and lenders. Often times, businesses will need availability to credit in order to purchase supplies or product, which is then sold at a premium. The proceeds will be used to pay off the credit; then they start the cycle over again. Established businesses will enter into such arrangements with banks and lending institutions, whereas newer businesses will have to discuss options with a supplier. Whoever they choose to go through can provide information on their payment history and in general, how well they have managed their credit. This information is then fed to a credit reporting agency, and will be available on their business credit report, and will factor into their score.
- Courts. Local, county, and state courts keep everything, so legal filings are available for credit reporting agencies to obtain.
- Everywhere else. Any other type of background information can be obtained from other sources, which include, but are not limited to public records, credit card institutions, collection agencies, and marketing databases. This information can sometimes prove to be stale, but nonetheless can be valuable information that is fed into credit reporting agencies.
What is gathered from these sources? Having sources is one thing, but getting something useful is a whole other issue. In this case, the useful information that is obtained can be trade payments, public record information, or collections information. This information serves as the backbone for creating a business credit report. That is why managing business finances in a timely and accurate fashion can be just as important, if not more so, than personal finances. Failure to obtain credit can be mean the end of some businesses, as many require credit influx to simply operate.
Is there a score? And if so, how is it calculated? Yes, there is a business credit score that is derived from information available on your business credit report. Like the personal credit score, there is a complex statistically based algorithm that calculates the business credit score. It attempts to take into consideration the factors that will help determine risk. In general terms, these are credit, public records, and demographic information. Credit is an obvious one. Things like number of trade experiences, outstanding balances, payment history, and percent of credit in use and many of the typical factors you will see in the personal credit score are in play here as well. Public records factor in liens, judgments, and bankruptcies. Finally, demographic information takes in to consideration the years on file, business size, and the Standard Industrial Classification (SIC) code.
Taking the time to familiarize yourself with the details of the business credit report and the business credit score can be an excellent tool for business longevity. Business owners throughout the country can benefit by simply paying attention to some small items like ensuring bills are being paid on time. This could have a long reaching impact on their business’ future.
Many individuals have never seen their credit report. In today’s world, that shouldn’t be the case. With the free annual credit report government program, the United States government has mandated that all American citizens have the right to request a free copy of their credit report once per year.
How can I get this credit report from?
There are three credit bureaus that participate in the free annual credit report government program, and they are:
Simply contact them directly and they can walk you through the process of obtaining your free credit report.
Why is reviewing your credit report important?
An annual review of your credit report is important since it allows you to stay on top of your financial situation. In general terms, taking advantage of the free annual credit report government program and getting a free copy of your credit report, will help you find in accuracies, ensure that all of your bills are paid, and that they are not a victim of fraud. In addition, it will help any consumer know what to expect when they apply for credit. If there are a lot of delinquencies, or past due payment histories, then it will be more difficult to get approval, or at least they should expect a higher interest rate.
Does my credit score come with it?
No. Only basic credit history information is included in your credit report. Credit scores need to be obtained separately and will typically be at a cost. There are few third party vendors who may be able to offer you free or discounted credit scores, usually in exchange for membership to another site or in conjunction with another offer.
What to look for once I have my credit report?
As mentioned earlier, your free credit report will simply be a file that includes your credit history, but no credit score. A credit score isn’t necessary to determine whether or not you have an excellent or poor credit history. The first thing you should do is to look to see if you have current negative records. These will impact your credit score the most and will weigh the heaviest when credit underwriters are reviewing your file. To have the biggest impact, pay these current immediately. Next, look for anything that may be inaccurate. Perhaps there is an account that is not yours or maybe an account was showing as behind at some point and it really isn’t. This is important because it can be an indicator of fraud.
Then, you want to look to recent inquiries. An inquiry occurs when a credit institution has pulled your credit report in response to a credit application. Credit reports can only be pulled with your permission, and if you don’t remember applying for a loan, then perhaps this may also be an indication of fraud. Either way, excessive inquiries can impact your credit score since each inquiry reduces your score by a couple of points. Finally, you should ensure that all your personal information is correct. The credit report will house information such as current address and work history. These items are typically used to validate identity, and if this information is not accurate, then again, it could be an indication of a fraud attempt.
Can I get a report more than once per year?
In addition to the free annual credit report government program, that allows a consumer to obtain a free copy of their credit report once per year, a consumer may also get a free copy of their credit report within thirty days of being denied for credit. In other words, if information from a credit report was used during the approval process for anything, such as a loan application or payment plan approval for insurance payments, and the request was denied, then the applicant has the right to obtain a free copy of their credit report. In the past few years, many other third party vendors have started to offer free credit reports regardless of the circumstance. Typically, these offers are part of an overall marketing program that will usually cost consumers a monthly fee down the road. The best, safe way to obtain a free credit report without being barraged by advertisements is directly through the free annual credit report government program.
The fair credit reporting act is a law that oversees all aspects of consumer information, including consumer credit information. It was enacted in 1970, and then amended in the late 1990s and again in 2003, with the ultimate purpose to protect and promote accuracy, fairness, and the privacy of personal information assembled by credit reporting agencies, otherwise known as credit bureaus.
The fair credit reporting act contains numerous rules that are aimed at protecting consumers by requiring credit bureaus to do a number of different things. The following list is not an exhaustive list of all of the requirements, but it covers many of the main parts.
• Disclose your credit file to you upon request. Credit bureaus must provide information in your credit file if you request it, provided you can provide proper identification. Consumers are allowed one free credit report per year, or thirty days after they have been declined for credit.
• Limit access to your information. Credit bureaus may not provide your credit report to any institution that lacks a legitimate purpose, such as credit underwriting for a loan, credit, service, or employment. Other purposes could include several business and legal uses.
• Get your consent before providing your information to an employer. A credit bureau may not provide credit information to an employer or potential employer unless you first give that employer written permission to request your credit report.
• Investigate disputed information. If you tell a credit bureau that your file contains inaccurate information, the agency must immediately investigate the matter with the creditor that provided the information. If the subsequent research fails to resolve your dispute, you may add a statement to your credit file to serve as explanation of the matter.
• Correct or delete inaccurate information. A consumer reporting agency must correct or, as the case may be, delete from your credit file the information that is found to be inaccurate or can no longer be verified. The consumer reporting agency is not required to remove accurate data from your file unless it is outdated.
• Delete outdated information. In general, negative information that is more than 7 years old (10 years for bankruptcies) must be removed from your file.
• Remove your name from marketing lists upon request. Consumer reporting agencies can provide lists of consumer names and addresses whose credit information matches the requirements of creditors and insurers for making firm offers of credit or insurance to the consumers on the list.
• Disclose your credit score to you upon request. You have the right to request a credit score about you.
• Add identity theft and active duty alerts. Identity theft victims may place fraud alerts and active duty military personnel serving away from their regular duty station may place “active duty” alerts to help prevent identity theft.
• Remedying the Effects of Identity Theft. If you are, or believe that you are, the victim of identity theft, you have specific rights under the FCRA. These rights will help you deal with the effects of identity theft.
There is a lot of protection offered by the fair credit reporting act to ensure that consumers are protected against fraud activities and credit reporting inaccuracies. This allows consumers at least a certain level of protection against these types of issues. Even in the event of something showing up on a consumer’s credit file, the fair credit reporting act gives remedies for addressing them in a structured manner.
The fact is that your credit history is important, and any negative information can have a drastic impact on your life. If the fair credit reporting act didn’t exist, consumers will be completely at the mercy of credit bureaus. Without any legal requirements, they would most likely not be inclined to work on ensuring that inaccuracies are removed. Instead, since the act does exist, consumers can rest assure that there is a level of security with regards to their credit information.
There is plenty of other information within the pages of the fair credit reporting act and the list above by no means represents the full list. It is intended to give you an idea as to the lengths that consumers, and their financial information, is protected.
There are 3 major credit bureaus that serve as the primary source of financial and other credit information about consumers. They are Experian, Equifax, and TransUnion. These credit bureaus are responsible for collecting this information, and compiling it into a useable form for creditors. This compiled report is referred to as a credit report. Under federal law, a consumer is allowed to access a copy of their report free once per year. In addition, they are allowed access to one if they have been denied credit within the past thirty days based on information contained in their credit report.
Functions of the Credit Bureaus
Of the 3 major credit bureaus, Equifax is the oldest. Information such as payment histories, loan balances, and any other debts are available for by financial institutions, utility services, and any other creditor. The credit bureaus, in turn, prepare a comprehensive credit report, which contains personal details like name, current and past addresses, work history, social security number, lawsuits, public records, and arrests of the individuals. There are details of financial transactions conducted by the individual during the year. There are other sections in the reports, which contain information about inquiries and collections. Inquiries give details of the people and agencies/companies that had accessed the report of the individual and the reasons for it. Collections contain the outstanding judgments and payments against the individual.
Apart from these, the 3 major credit bureaus provide other services for a fee. The credit reports are free of cost but they do not contain the credit score. The three bureaus prepare their credit scores separately and individuals can purchase them from the websites.
- Experian prepares business credit reports too
- TransUnion was the first bureau to offer online services for accessing credit reports.
- Equifax offers consumers, credit monitoring services and another service known as Credit Lock, which prevents other organizations from viewing the credit report.
Laws Governing the Credit Bureaus
The Fair Credit Report Act, Fair Credit Billing Act and The Fair and Accurate Credit Transactions Act have set some rules and norms, which have to be followed by the credit bureaus. The rules provide that the consumer can access his credit report for free once in a year. Also, no one other than the consumer can access the report without his explicit written permission. Many of these laws are in place to protect consumers from fraud or credit reporting inaccuracies. The 3 major credit bureaus have to adhere to these rules and regulations, and do an excellent job at mitigating the risk to consumers.
Are these the only credit bureaus?
There are numerous other credit bureaus but only the 3 major credit bureaus mentioned above are authorized by the government to provide the credit report to the consumers. This, in essence, makes them the definitive source for credit information and the preferred location for creditors to obtain this information. Many third party vendors have partnered with these credit bureaus to offer value add solutions that attempt to summarize and present this often complex financial information to consumers to make it more digestible.
As a consumer, the ability to get information directly from the 3 major credit bureaus is great. It puts you in a position to see the same information that credit underwriters see when they are making their decisions. There should be no surprises. Especially if you are pulling your credit report once per year as recommended. This will help you ensure that there is no fraud activity or payment history inaccuracies.
This is a great tool that simply wasn’t available a few decades ago. With the explosion of the internet, information has become more transparent, and the 3 major credit bureaus are no exception. Making this type of information as accessible as it is has been a great help with consumers and credit institutions alike. In an instant, a consumer can walk into car dealer, test drive a car, and the dealership can have a credit approval for that individual before they leave the lot. This type of speed in decision-ing is made because of the 3 major credit bureaus ability to provide timely and accurate information, quickly to the correct source.
Your credit ratings are important in today’s world as some much is determined by how well you manage your finances. Whether you are going to buy a car, buy a house, seek a job, travel visa, seek a loan the outcome will be somehow directly be linked to your credit score and that is why you should order a free credit report. A free credit report is simply a record of all your past and current credit, and the payment histories associated with them. The information contained on free credit report will be used in a number of ways that will be discussed further in this article. Your financial identity is highlighted by the free credit report just the same way passport or social security number shows your identity as a person. There are many good reasons as to why you should order a free credit report the list is endless but this article highlights just a few.
Improving Your Credit Rating
A free credit report offers you the chance to improve your credit ratings, and whether it is bad or good, there is always room for improvement. Receiving the reports in advance will help you rectify the bad credit history before you approach a bank or any other financial institution for credit. Bad credit can be eliminated by paying bills on time, settle outstanding debt commitments and remove unnecessary credit lines. Once you take care of the issues mentioned above your credit rating will improve greatly that when you present your free credit report to lenders, they will not hesitate to give you a loan.
Having a free credit report is crucial in ensuring that you are aware of how you are performing financially. Not having a record of all your financial transactions will likely to cause anxiety that is not good to your overall health. It is advisable that you know how you spend your finances so that you do not enter into debts without noticing. With a free credit report you will be aware where you stand financially hence make wise spending decisions that will maintain your good credit ratings. Having a free credit report leads to one being financial independent.
A free credit report acts as an asset in disguise that can be used to secure credit from various banks and other lending institutions. We apply for credit for various reasons such as emergencies, to purchase a car, house, pay school fees. Hence, you will need to convince the bank or lender that you are going to repay back the loans without difficulties and this is where the free credit report comes in handy. Your free credit report will show your credit history and how you been repaying your loans and other financial commitments. For Americans who have been prompt in settling their debts, their free credit report will have good ratings and lenders will certainly give them loans. A free credit report will help you secure employment in most institutions. Employers will see you as an efficient financial manager because they expect you will extend this trait when handling company financial resources.
Ordering free credit report is a sure way of determining that no one has access to your finances apart from you. It protects you from identity theft so that you do not pay for goods and services that you have not authorized. If you are not sure about a particular transaction or feel that you are a victim of identity theft, you can order cancellation on all your credit cards.
Clarity of Information
When you order to get free credit report from one of the three major credit bureaus, they will send you your report and this is a good way to confirm that the information shared are true. It is a great idea to order free credit reports from all three of the credit bureaus (TransUnion, Equifax, Experian), to ensure that all your personal details are correct, and that your balances are the same in all the credit reports. You should take advantage of receiving free credit report to rectify any misleading information so that you portray your true financial image.
All of our financial dealings are documented and stored for potential creditors to review. This information is provided to creditors, or anyone authorized to review this information, in the form of a credit report. According to United States law, every American is entitled to receive one free credit report annually when requested through one of the three major credit bureaus. Reviewing your free credit report is important in very many ways, for example it can help you in any efforts to reduce your debt. A free credit report is crucial in ensuring that you don’t become a victim to identity theft, cyber-crime has been on the rise and poses a great threat to identity theft. Therefore, a free credit report protects you from falling victim to this crime.
Another reason why it is crucial that you have a free credit report is that it will determine your bargaining power when you apply for various loans from banks and other financial institutions. A free credit report shows your credit history of how you have been repaying your debts, how many loans have you applied, how many credit cards you have. Various US Banks and other financial institutions will analyze the information on the free credit report and decide whether you qualify for a loan. A favorable free credit report will work to your advantage in securing loans at low interest rates, hence without this report it will be impossible for you to convince the bank to give you a loan.
Accuracy of Information
Another importance of having a free credit report is that you will be able to confirm whether your personal data and financial history is correctly printed. The report contains your names, date of birth, addresses, telephone numbers and this will be the ideal time to confirm if they are in order. At times credit reference bureaus print wrong information on the free credit report that can portray you differently than you expected. For example, you may have cleared all your debts but the credit reference bureau has not received this information. When they print the annual free credit report they will print it according to what is in their records, the impact of this is that you will be seen as a defaulter since your balances show you have debts.
Free credit reports go long way in determining if you are to be employed or promoted to another post. Employers are very keen in knowing your credit worthiness before they can absorb you in their companies. Especially for those who wish to work in financial institutions where you will be responsible in handling other people’s finances, a free credit report will show how you manage your own finances and if you have good credit rating chances of landing that job is high. Employers see this situation as a particular trouble spot should they employ someone with a less than desirable credit history.
Free credit report also disciplines a person’s way of spending and teaches you how to manage your finances. If the report is obtained annually, it has all the details of your current debt balances; you will be able to know whether or not you have been effective in any debt reduction strategies. With this information at hand, one will be able to make sound financial decisions and prevent previous sending habits leading to increase debt. A free credit report acts as a benchmark that you should strive to maintain to attain financial independence. It will enable you to see the areas you need to improve on, non-critical areas of spending that can be avoided such as extra credit cards that add strain to your financial resources.
Another importance of having a free credit report is it comes at no cost to you. You do not have pay any fees to credit reference bureaus to get the information. Under the law, consumers have a right to receive free credit reports upon request. The free credit report is instant and does not a long time to be delivered to your mail; most credit agencies deliver within 15 working days. You can also access the free credit report online from various sites if you have any clarification to make regarding your financial status.