Posts tagged ‘annual credit report’

Free Annual Credit Report

When is the last time you looked at your credit report? If you are like most people, you let months and even years pass between checking your 3 credit scores. Some consumers are unaware of how credit works or it simply scares them off. They think it’s too complicated or might be too expensive to request a copy of their credit report. But, this isn’t necessarily the case.

Sure, if you want to check your report every week or every month, you will have to subscribe to a costly credit monitoring service, but if you just want your free annual credit report then you can view it for free online. For most consumers, this free annual credit report is all they need to keep their credit healthy and in good standing.

Why is it free? There is a federal law in place which allows consumers to check their credit reports from the 3 major credit reporting agencies (Equifax, Experian, and TransUnion) once a year without any cost associated with it. This is a called a free annual credit report. As a consumer, you are entitled to see the contents of your credit report so you can make sure there is no errors or fraud. If any errors are spotted, you can work with the credit reporting agencies to fix or eliminate them before they do serious damage your credit. It is highly recommened that you take advantage of these free annual credit reports.

As a responsible consumer, you should always be aware of the contents of your free annual credit report. After all, your credit report is what lenders are looking at when you try to get an auto loan, mortgage, line of credit, or any kind of loan in general. They can see any current loan you have, how often you pay them back, and whether or not you are late on any payments. Paying your loans back on time every month shows lenders that you are a low risk and you will be able to secure a loan. Having a clean and responsible credit report is key to securing any kind of loan or line of credit.

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With identity theft on the rise, it makes checking your free annual credit report even more important. The last you thing you want when trying to build your good credit is someone stealing your personal information and then taking out loans with your name. These ID thieves will also open lines of credit in your name with no intention of ever paying the money back. This can do serious damage to your credit and make it impossible for you to ever buy a car or home, so it is vital that you are checking your credit report at least once a year.

There are many different websites online that will allow you to check your credit reports, but a lot of them will charge you. If you want to request your free annual credit report, you should visit annualcreditreport.com which is a government owned website for consumers to get their report once a year without any kind of cost. It will show you your reports from the 3 major reporting agencies – Equifax, Experian, and TransUnion.

When viewing your free credit report, make sure you are checking everything in detail and keep these tips in mind. Look closely for any fraud or errors and report them immediately. Make sure lenders are reporting your payment habits correctly. If you notice any old debts that are still unpaid, take care of them to improve your credit. Remember, credit is an important part of your financial life. Make sure you are checking your free annual credit report each and every year!

Free Credit Report -vs- Free Credit Score

Most people believe that their credit report is the most important document to keep an eye on. Well..Yes and No. Sure, it’s an important first step to perform, i.e. getting your free annual credit report. BUT HERE’S THE UGLY TRUTH: When it comes time to get that auto loan or mortgage loan, most lenders will go straight to your credit SCORES and NOT your credit reports. Your credit report only provides the raw data that goes into figuring out what your score is.Your lenders may or may not even bother taking the time to peruse through your credit report to see what factors affected your scores

BUT HERE’S THE PROBLEM:
Annualcreditreport does NOT provide your credit scores! You have to purchase them individually from the 3 major credit bureaus in order to see them.Your scores do NOT come free with your annual credit report.

But once again, it’s your SCORES that ultimately determine whether or not you’re considered creditworthy for that loan you’ve applied for. It also sets your loan interest rates for mortgage loans, auto loans, personal loans, etc. The better your score, the lower your loan interest rates and monthly payments. So it’s vital to check both your free annual credit report AND credit scores. With the former, you can perform a credit check once an year from annualcreditreport.com. For the latter, there are various free credit score gov programs that you can utilize.

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So, once again, how do I get my 3 credit reports and scores for free?

Getting your free credit reports from all 3 credit bureaus is your right by law. Through annualcreditreport.com you can view your free annual credit report once per year. As a consumer, it is your right to request and view your credit reports fore free once a year. But if you’re interested in seeing your credit files more than once per year, you’ll have to pay for this. You will also have to pay for your credit SCORES since these are NOT included with your annual credit report for free. But as mentioned before, there’s always free credit score programs you can utilize.

Importance Of Checking Your Credit Reports & Scores Regularly

Most people don’t view their credit report or score on a regular basis. This makes it virtually impossible to catch errors or fraud. When they go to get a loan, they are often shocked at how high their interest rates are – or worse yet, they are denied completely for that important loan. Don’t let this happen to you. Make sure you are checking your credit report at least once a month.

Also, whenever you pay your credit card bill, mortgage, or any other loan it is reported to the 3 main credit reporting agencies. These agencies include Experian, TransUnion, and Equifax. Their job is to collect data on potential loan applicants and give this information to lenders so they can give loans to people who are more likely to pay the loan back. So paying on time is just as, if not more, important.

Conclusion
On our site, you can explore the differences between a freeannualcreditreport and credit score. Learn what the average credit score is. Learn how to understand the information on your credit files, and tips on how to improve your credit if it is less than ideal. Make sure to read all of this information as it was written so that consumers could be more aware of how their credit works.

For more details on free credit score programs, click here