Free Credit Report

Yes, it is true: free credit reports are available for you, the consumer. Thanks to an act of Congress, you can get copies of your credit reports annually. This means that Experian, Equifax, and Trans Union - the Big 3 credit reporting agencies - must furnish one free copy of your credit report to you every year. No, you can’t get your free credit reports sent to you automatically: you must take action. Let’s take a look at how you can get copies of your credit reports sent to you today.

Annual Credit Report - By visiting AnnualCreditReport.com you can sign up through the government approved site that will give to you your free credit reports. Each of the three credit reporting companies is listed therein, so select one and provide your personal information to the company of your choosing. Once your information has been verified, a report will be generated for your review. Take a close look at it: if there are errors you need to follow the company’s procedures for contesting mistakes.

Your Credit Score - Not included with your free credit reports but available for a small fee at the same time is your credit score. This is the score whereby members of the credit industry rate your creditworthiness. The higher your score, the better for you and the lower your borrowing rates will be.

Competing Sites - Some consumers prefer to pay for what otherwise are free credit reports. By signing up with companies who offer this service, you can automatically have your credit reports run and sent to you on a periodic basis. Again, you will pay a fee for something you can get for free. In any case, you will pay for your credit score no matter whose service you use.

As with any report, check your free credit reports for errors. Experian, Trans Union, and Equifax all have procedures listed outlining how you can challenge errors. Make certain that you follow their directions to have wrong information expunged from your report. It could save you money on your next credit card loan, car loan, or home mortgage.

Certainly, there aren’t many things that are absolutely free in this life. Congress has seen fit that free credit reports are offered to American consumers in all 50 states. Run each report at least once annually and check it for mistakes as they commonly occur. Who knows, but those free credit reports could reveal identity theft issues too saving you much grief and aggravation if caught in a timely fashion.

Copyright 2006 - For additional information regarding Matt Keegan, The Article Writer, please visit his blog for wit, quips, and freelance writing tips.

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What is a Credit Score Report?

One of the first steps in repairing or improving your credit score is to find out what your current credit report looks like. A credit report is a detailed report generated by a credit bureau for a prospective lender. This report includes an individuals debts and the timeliness of their repayment, employment and residence history, any judgements, tax liens, or bankruptcies. Based on this information, a credit score is determined which is a number from 400 for a low score and 900 for a high score. Credit scores are used by lenders to determine if you qualify for a loan or service. The lenders use these scores to estimate the amount of risk they maybe exposed to by providing you with their services. Basically the higher your score the less risk you represent to the lender.

Where can you get a Free Credit Report?

A Central Source has been setup for you to request the free reports. You can contact the Central Source at: www.AnnualCreditReport.com or by calling 1-877-FACTACT. The Central Source makes the reports available to certain parts of the country during certain times of the year.

Also, there are three nationwide consumer credit reporting companies where you can purchase a copy of your credit score report. These are:

Equifax - www.equifax.com
Experian - www.experian.com

TransUnion - www.transunion.com

It’s a good idea to purchase the Credit Score Report along with the free Credit File Disclosure report to get an overall picture of your credit profile.

New Credit Scoring System

A new credit scoring system called “VantageScore” has been designed to make it easier for financial institutions to assess loan applications and also give consumers an easier way of measuring their credit worthiness.

The three credit agencies each have been using their own formulas to generate their own credit scores, so lenders would have to reconcile three different scores when dealing with a consumer’s application for credit.

Now, using this new system, only one formula is used to create the scores for all three credit bureaus, so the scores will be virtually the same. This will provide a highly consistent score that is easy to understand. The scores will range from 501 to 990. The high end is slightly higher than scores currently in use. The scores will be grouped in a way similar to academic grades. For example:

A — 901-990

B — 801-900

C — 701-800

D — 601-700

F — 501-600

The new score is expected to reduce the fluctuation in a consumer’s scores by an estimate of 30 percent compared with the old method.

This article has been provided courtesy of http://www.RefinanceBadCreditNow.com RefinanceBadCreditNow offers great information and resources for people with bad credit where you can find information on Credit Reports, Debt Consolidation, Auto Loans, Mortgages, & more.

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There is a bit of misunderstanding going around regarding free credit reports: you can get a free credit score too. In reality, this isn’t true. If you go to the three credit reporting agencies, they are required to furnish your credit report to you for free. If you want your credit score, you will have to pay for it. There is a difference, so let’s examine just what they are.

A free credit report is available to you through each of the Big 3 credit reporting bureaus. Trans Union, Experian, and Equifax have been authorized by an act of Congress to supply a copy of your credit report to you once per year. If you order more than one copy from the same company within that year you will pay for that report. In addition, if you want your free credit score, you won’t get one: for free, that is. Instead, expect to pay a separate fee of approximately $4 to $7 per agency to get your credit score. So, it isn’t a free credit score, but it won’t cost you a bundle either.

On the other hand, there are companies marketing free credit scores as part of their package of selling to you copies of your credit reports. In these cases you pay for what is already free and get free what really should cost you money. Are you confused yet? Well, don’t be: essentially you are getting both the credit report and the free credit score as part of the package. In any event, you are likely paying more for the combined service than if you did the work yourself. Again, it is a service so expect to shell out some money if you opt to go the free credit score with credit report route.

For consumers wanting a free credit report, than a visit to AnnualCreditReport.com is in order. Again, in this case your credit report will be free but don’t look for a free credit score. The previously mentioned $4 to $7 fee will be charged to your credit card.

As with so many things, shop around and read the fine print. Remember, companies do provide a service by offering reports and scores to you. For some consumers this is a great way to “remember” to get copies of their reports and scores when someone else is doing the work for them. In any case, make certain that you obtain a copy of your credit report and scores today regardless of whether you choose to do it yourself or have someone do it for you.

Copyright 2006 - For additional information regarding Matt Keegan, The Article Writer, please visit his blog for wit, quips, and freelance writing tips.

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