Credit Reports Galore

John Mcfadden asked:


A consumer credit report is the annual assessment of each person’s credit standing. By knowing what is on your you can get a lot of benefits when you go to get credit based services like loans, credit cards and even rent and phones.

Each year, by law, American citizens are entitled to obtain a free copy of their annual consumer credit report which basically details their credit risk profile. This allows companies who are considering extending some type of credit to the consumer to make an educated decision on the risk of that transaction. The better the credit of the consumer, then the better chance that company has of being paid back by the consumer.

By having a good credit report, a consumer can gain advantages such as cheaper loans and credit cards and avoid the embarrassment of being rejected for things like rental apartments and telephone contracts.

There are three companies which can offer a free consumer credit report (Experian, TransUnion, and Equifax) and are legally obliged to offer that annually.

By knowing what is in your credit report, you can negotiate for better credit condition (if you’re report is good) or you can strive to repair your credit by challenging inaccurate or false items on your report.

To do that, you simply need to obtain a copy, unfortunately you need to actually a report from all three credit bureaus. Why, because lenders don’t report to each bureaus, they just report to one with your past financial information - so if you only obtain a copy of one report then you will not have your complete financial position and history, it is recommended that you get all three reports - they way you know where you stand and you start improving nay negative information, it is common for your personal information to be old or incorrect.

Make sure you update them with your correct address. Be sure not to use companies that claim they can quickly improve your credit score, they are most likely to be scammers.

Assess the items on it that are negatively affecting your credit score and challenge those items to the relevant consumer reporting company. That company is then legally obliged to pursue the matter.

The thing is that challenging your credit report takes knowledge and time and so it may often be a better option to hire a credit reporting company to do the leg work on your behalf.

It’s essential you know how lenders will read and give weight to different parts of your Credit Report:

The American company FiCO has a tool that helps credit bureaus determine your credit score - below is the matrix that is used:

Payment History 35%

Amount Owed 30%

Length of Credit History 15%

New Credit 10%

Types of Credit Used 10%

Such companies know exactly what can be challenged as well as how to do it and who to contact about your credit.

By having a good credit report, you can make your own life a lot easier and cheaper in the long run.

Hopefully this article has been helpful for you and you will now know exactly what yours says.



DONNIE

John Mcfadden asked:


Getting your free credit report online is not easy straight forward you you might think, there are plenty of things you need to know - like being aware of the current scams in the targeting consumers, you need to get the 3 credit reports from all three major Credit Bureaus, you need to get your report every four months, you need to know about identity theft, and more.

A credit report is essential - you know that you need to have a good one - or a good credit score to be able to access credit, but do you know the key information that banks or lenders look at on your report when they are assessing gif they will lend you month or not?

The American company FiCO has a tool that helps credit bureaus determine your credit score - below is the matrix that is used:

Payment History 35%

Amount Owed 30%

Length of Credit History 15%

New Credit 10%

Types of Credit Used 10%

So you need to go though your report and look at these areas and concentrate on the ones at the top of the list. If they don’t look that healthy then maybe leave applying for a loan for at least six months - in that time frame you can look at areas to improve your credit score.

Current Credit Report Scams

There are a few scams on the internet at the moment - they will advertise a free credit report and then slug you will a service fee. Be sure that when you apply for you credit report you are sure about the additional services that they are selling to you - make sure you read all there documentation and be sure not to sign up to anything you are not sure about. Also, watch out for this one where you can get caught by supplying personal inforamtion. It works by you providing information via an online form requesting to receive a credit report. What actually happens is that your personally identifiable information is captured by the Scammers who pose as a business.

Get your correct Credit Report Information

You need to get a report form all three credit report bureaus, why you asK? because your past loan and debt information may only be on one of the reports - by law lenders have to report you financial info but only to one bureau, so if you get your report form another bureau then you don’t have access to all your financial history - so you will not be able to firstly correct wrong information but you wont get a clear assessment of where you stand, so when you apply for a loan you could be rejected. You need to get your report form all three bureaus and also make sure you keep getting the reports every 4 months - as different information will come in at different times, the best way to get your info is first apply for your report at all three bureaus and then get an addition one for each agency one-by-one every four months. This way, after a year you will be sure to have a full picture of where you are at.

I hope this information on getting your credit report was of value and you see the importance of your credit report and credit score.



DEREK