Getting an annual credit report has been likened to getting an annual physical check-up. Some people may view it as something that can be postponed. It may have been an annoying inconvenience in the years past, but today’s Internet technology has eased the process. It is as important to an individual’s fiscal health as a physical exam is important to his or her physical health. Also, as in a physical exam, getting a credit report can help prevent bad things from happening (financially speaking) and if financial problems already exist, viewing your credit report can prevent things from getting worse.
During the past years, a person would have had to pay $9 to get a copy of his or hers credit report. Today, on the other hand, consumers can get a free copy of their annual credit report, thanks to a law passed by the United States Congress in 2003: the Fair and Accurate Credit Transactions Act (FACTA). Under this law, American citizens can obtain of a copy of their credit report every twelve months, free of charge. All they have to do is log on to Annual Credit Report, a web site created by the cooperation of the top three U. S. credit bureaus: Experian, TransUnion, and Equifax. It is also possible to request individual credit reports from these three agencies.
However, don´t forget that the content of credit reports from these agencies may differ and all the pieces of information are critical to a person’s fiscal health. Why is this so? Many people might not realize it, but there are entities that use their credit report for reasons that affect their everyday lives.
For example, if you are applying for a mortgage, your credit report is one of the things that your potential creditor will take in consideration. But it doesn´t apply only to mortgages, this information is also important when it comes to things like your automobile insurance, home insurance, and loans. It all goes down to the questio: Are you credit-worthy enough for financial institutions to lend you money or underwrite your potential debt? Your credit report is one of the main factors in helping financial institutions decide this, so it is worth your time and effort to make sure that your credit report is in order; or if it is not, to take the necessary steps towards credit repair.
Even if you are certain of all your financial transactions, you might be surprised to find inaccurate information in your annual credit report. Although such occurrences are not exactly frequent, they can happen nevertheless. Sometimes payments you have made or debts you have cancelled may not show up in your credit report, and this will negatively affect loans or other financial dealings for which you are applying. You should always have the most updated copy of your credit report – any inaccuracies will be noticed and you can take the necessary steps to correct them as early as possible.
Your credit report is another exceptional indicator of whether you’ve been a victim of identity theft. Think about it: you may have given personal information such as your Social Security number to an e-mail asking for that information or to a web site requiring that you give that sort of data first before being allowed to proceed with the site’s other services. The fact is, an unauthorized person who has your Social Security number and other personal information can get loans or credit cards under your name. Fraudsters who do this usually go on a spending spree, racking up debts with you as the debtor. Meanwhile, you go about on your daily business, innocent of the fact that your credit reputation is being ruined (for, because you don’t know about your alleged “debts, ” you don’t take steps to pay them).
Getting an annual credit report, is essential to helping ensure one’s financial well-being. It can help you fix inaccurate credit data as early as possible to your advantage. And best of all, this credit repair tool is free!
Your credit report contains a list of every member creditor who has lent you money or provided you with credit in any way, at a given time. It shows your charge accounts, automobile loans, bank and student loans, home mortgage, and any other credit-related transaction. It also shows when the credit line was opened, the highest amount you ever borrowed, how much you owe now, and whether you were late or you’ve missed any payment.
Your credit report also contains certain items known as “Public Records”. Public records include any credit-related lawsuits that you may have been involved in as well as liens, repossessions, foreclosures, judgments and bankruptcies.
Credit bureaus also report the names of other member creditors who have made inquiries into your account. For example, if a potential lender sees too many recent inquiries, they might not grant you credit if they feel that you are getting overextended.
There are, however, two types of inquiries that are part of your record but are never seen by creditors. There are inquiries made by you, on your own behalf, and inquiries made by companies that send you all of those unsolicited credit card and loan offers that you get in the mail. So, while these offers may be annoying to some, the good news is that you are not being penalized by them.
How am I identified in my credit report?
Your credit report lists your name, current and previous addresses, Social Security Number, Date of Birth, Spouses Name (if you are married) and your employer. That is pretty much it, by law, your credit report cannot contain information about your race, religious beliefs, political affiliations, sexual preferences, criminal records, or any other lifestyle issues.
How far back does my credit report go?
Positive or “good” credit information remains on your report for as long as you have an active credit relationship with the creditor and for up to seven years after that relationship ends satisfactorily.
Negative, or “bad credit” remains for seven years except for bankruptcies which remain for up to 10 years. Read about all the exceptions here.
On another hand. You are entitled to a free credit report from any agency that provided information that resulted in your being denied credit, insurance or a job if you request it within 60 days of the denial.
If you are lucky enough to be a resident of Colorado, Maryland, Massachusetts, New jersey, or Vermont then there are state laws that entitle you to receive one free report from any one credit-reporting agency per year. If you live in Georgia then you may get two.
It’s always good to know what is in your credit report and who has been inquiring about your credit. Get the free credit reports you are entitled to every year and stay on top of your credit.
Did you know that your credit report information about where you work, live and if you pay your bills on time (or not). It {also may show if you’ve been sued, arrested or have filed for bankruptcy with in the last 10 years. Companies called Consumer Reporting Agencies (CRA) or Credit Bureaus compile and sell your credit report to businesses all over the world/everywhere.
Many financial advisers instruct that you should review periodically your credit report for mistakes or omissions. This could be supremely important if you’re debating about making a major purchase, like buying a house. Checking in advance on the accuracy of information in your credit file could speed the credit-granting process, having a clean credit is obligatory. It’s important that the information in your report is complete and accurate.
A credit report is pulled from at least one of the three major credit bureausevery time you apply for any type of credit or financing. This is why you will want a clean credit report to be pulled.
Getting Your Clean Credit Report
If by any chance you’ve been denied credit, insurance, or employment because of the data supplied by a credit reporting agency, the FCRA says the company you applied to must give you the agency`s name, address, and telephone number. In this case, if you get in touch with the agency for a copy of your report within 60 days of receiving a denial notice, the report is free. In addition, you’re entitled to one free copy of your report a year.
If you just want a copy of your report, call each of the three credit bureau listed since it is possible that more than one agency has a file on you, some with different information. The three major national credit bureaus are: Equifax, Experian (formerly TRW) and Trans Union.
Correcting Errors For Clean Credit.
In order to protect all your rights under the law and to keep your credit clean you need to contact both the CRA and the information provider.
To get clean credit reports,tell the credit reporting agency in writing what information you believe is inaccurate. Don’t forget to include copies of the documents that confirm your position and keep the originals. It is also mandatory to provide your complete name and address and to clearly put out each item in your report you dispute, explain why you dispute the information, and request deletion or correction.
They must reinvestigate the items in question, usually within 30 days, unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the CRA, it must investigate, review all relevant information provided by the CRA, and report the results to the CRA. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide CRAs so they can correct this information in your file. Disputed information that cannot be verified must be deleted from your file, then you will receive a clean credit report, with that item removed.
At the end of the reinvestigation, they are obliged to give you the written results and a free copy of your clean credit report, only if the dispute results in a change.
Clean Credit: Here are the exceptions:
There is no time limit when reporting credit information in response to an application for a job with a salary of more than $75,000, when reporting credit information because of an application for more than $150,000 worth of credit or life insurance and last but not least, there is no time limit when reporting information about criminal convictions.
Information about bankruptcy may be reported for 10 years and information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.
Actually though the majority of people in United Places now has a right to hold a costless credit report annually from most of the three most important credit bureaus, Equifax, Experian, and TransUnion, there is still considerable doubt among consumers just as to whether they can get a credit report without having a credit card.
In fact having a credit card is not needed to get your credit report. Most of the people is welcome to have a look at his financial records without the charge whatsoever once a year. This is imposed by law. However many (the fact is that almost all) of online credit report providers that deliver charge-free credit card reports use credit cards as a technique to verify the identity. This is one of the most important reasons for the confusion. Consumers should be suspicious when utilizing such services and they will must go through the small print.
However there is no need for a credit card to obtain your free credit report and you can pass over the need to research on other online sites when you can obtain the credit report from legally mandated source site. The only thing that you have to do is to have a look at the principal website managed by the three main credit bureaus to be able to provide the free credit reports good provisions of The Fair Credit Reporting Act (FCRA) and Fair and Accurate Credit Transaction Act (FACT). This website is called annualcreditreport. com and once you finish with, you can almost without hesitation view your credit report.
Most likely you will| be asked for proof of identity but it will not be your credit card. You will be asked to give your name, address, date with birth, and social security number. If you have changed residence most likely you will be asked to give old address. Added the credit bureau from which you requested the report will ask you to answer a question, the answer to which only you may know. Questions may change in one bureau to another, although they will probably refer to employment history, old addresses or telephone numbers.
You also can ask for your free credit report using the toll free telephone number on the other hand through the mailing address given by the three credit bureaus. With that method you will have the report within 15 days in the request.
Federal Trade Commissions which mandated the law for receiving your annual credit report free of charge has made public that only one website has the authority to provide your free annual credit report. That website is named annualcreditreport. com. They also alerted about additional websites that offer free credit reports, but with the catch that you have to register for credit monitoring. It should be noted that the only true method with getting your report without having to signup for other providers is to get into contact with the credit bureaus directly. You can do this either via the website, the telephone or through postage mail.
Since you can request the credit report from most of the three credit bureaus annually you could space the requests out rather than requesting all three report at once. That way it won’t be needed to wait 12 months for your next free credit report. Note, however, the three bureaus have different sources for the information included in their reports. This means that, their credit reports for the similar person tend to differ from each other.
Keep an eye on our site for the best tips, advices and resources to consist of information on obtaining a free copy of your credit report.
