The Advantages To Obtaining A Free Credit Report And Score – Verify Your Credit Score For Free
A credit report provides information in regards to your credit worthiness by giving the nitty gritty details of your credit transactions. These reports are sold by the credit bureaus to lenders like banks, insurance companies, credit card companies and many other financially related institutions who use your report to evaluate you and decide whether to transact with you. Under the Fair Credit Reporting Act, you are entitled to your very own free credit report from each of the three top credit bureaus Equifax, Experian ad TransUnion, every 12 months, on request. This is to ensure that you know what picture is projected about you to the various potential lenders and businesses in the market and to protect yourself from any form of identity theft that seems to be prevelant in today’s society.
In order to cater to the free annual credit report program, the three credit reporting companies have set up a website, a toll free telephone and a mailing address as avenues through which anyone can order their free credit information. The website is http://www.annualcreditreport.com , the toll free number is 1-877-322-8228 and mailing address is Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281, to which you need to send in the Annual credit report request form. Additionally, you have the option to order free report and score (the score is optional and comes at a small cost) from all three companies at the same time or each at a different time, depending on your purposes.
Consumers that choose to search the Internet and go online in order to obtain a copy of their free credit report and score need to be wary on one point – There are companies that have their web site names very close in spelling to the one mentioned above. So, if a consumer makes a typo error while typing the website address, they will be redirected to different unintended pages, which may collect some information and offer some services, at a cost.
When you order your information online, you will get it instantly. Whereas if you order using the toll free number or through the mail, it is likely to take a minimum of 15 days or more, depending on the volumes being processed by the credit bureaus. You are also eligible for a free credit report, when a company has refused to transact with you; if you do not have a job currently and plan to take up one in the next sixty days; if you are on welfare or if your report has any errors that you have reported with evidence.
If you wonder what you will do with a credit report, think again. Before applying for a loan or insurance or credit card or a job, it is a good idea to verify your financial information and ensure that all the details provided there are accurate and current. Else, the report might throw an unpleasant surprise at you. Verifying your credit report periodically is a way to avoid identity theft, where a person lifts your identity details and uses it for credit purposes like getting a loan or a credit card and defaults on it. By checking your credit report, you can catch such thefts and report them on time, before it gives you ‘bad credit’.
Now that you know the advantages of tracking your credit report and score, you could choose the best way to get it free and enjoy the benefits.
Fix Your Credit Before Applying For a Loan
If you know you have a very low credit score, and perhaps a nasty looking lend report, you could yearn to do some research on repairing your credit, before applying for a Home Loan. While repairing your spoiled lend is no easy task, it’s something that you can do yourself, apart from paying a credit repair business or getting involved in one of the many credit repair scams out there.
Be warned, there is no easy fix. Improving your lend study legitimately does take time, a purposeful effort, and strict adherence to a personal debt repayment plan. However, once your credit is improved or repaired, you may be able to qualify for a Home Mortgage.
According to the Franchise Tax Board, first, you will yearn to acquire an up-to-date copy of your lend report.
If a business takes “adverse action” against you, like denying your application for credit, insurance, or employment, you’re entitled to a free lend report. Your request must be made within 60 days of receiving observe of the action.
If you’re unemployed and plan to look for a job within 60 days, you’re also entitled to one free credit report, per year.
If you’re on welfare or if your study is inaccurate because of fraud, including identity theft, you are also entitled to one free credit report per year.
How to Request a Copy of your Credit Report
Equifax, Experian, and TransUnion are the three nationwide consumer reporting companies. If you ask for your credit report, they are required to provide you with a free duplicate once every 12 months.
You can also call 1-877-322-8228
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
How to Repair your Own Credit
To correct or repair facts on your credit study that is incorrect, you will want to write the consumer reporting companies listed above. The Franchise Tax Board advises the following: “Include copies (NOT originals) of any documents that support your position. In addition to providing your complete name and address, your letter should identify each item in your report you dispute; state the information and the reasons you dispute the information, and ask that it be removed or corrected. You may want to enclose a duplicate of your report, and circle the items in question. Send your letter by certified mail, with a return receipt request so you can licence that the consumer reporting company received it. Keep copies of your debate letter and enclosures.”
What If the Negative Information on My Credit Report is Accurate
Unfortunately, in this case, the only way this facts can be removed is via the passage of time. Use the following time table to calculate how long this facts will remain on your credit report:
- Most accurate negative information: Seven years from the date the drill took place.
- Bankruptcy information: 10 years from the date the bankruptcy took place.
- Unpaid judgments: Seven years or until the statute of limitations runs out, whichever is longer.
- Criminal convictions: no time limit, may never be removed
- Information reported in response to your application for a job that pays more than $75,000 a year also has no time limit.
- Information reported because you’ve applied for more than $150,000 value of credit or life insurance: no time limit.
Where to Turn If You Need Help
Just because you have a failing lend score or a dreadful credit study doesn’t defaming you can’t acquire credit. Every creditor has their own set of standards, and views credit scores and reports uniquely. If your recent bill payment history has been improving, this can earn you some credit worthiness. Some creditors may look only at recent years to appraise you for credit.
If you are looking for help adhering to a allot and making your payments on time, in a consistent fashion, you may yearn to try to work out a repayment plan with your creditors, or you might take into account contacting a credit counseling organization.
All this hard work is ultimately a huge step towards financial freedom, and being able to get a loan to buy a home or Refinance a home you already own.
For more information, visit the FTC’s website.