Free Credit Report

It is a right of passage for a teenager. As soon as you turn 18, the credit card offers come rolling in. It can be hard to resist. The average college student will graduate with $5,000 of credit card debt. More and more young people are making credit decisions without knowing the consequences.

Here are the top five things every teen should know about credit:

1. Credit is not a freebie

Credit costs money. When you borrow money, you will always pay back more than you borrowed. Interest can add up quickly. A $50 dollar pair of jeans could end up costing you $500 or more if you charge it on a credit card. A $100,000 mortgage equals approximately $300,000 worth of repayment over 30-years. While you are able to get what you want, you will have to sacrifice in the future to pay it back. Nothing is for free, especially not credit.

2. Credit must be earned

It can take a long time to establish a good credit history. It will take you even longer if you make the wrong decisions at first. You can establish a good credit history by successfully managing a bank account and wisely using a small amount of credit for several years. You must pay your bills on time, every time and be aware of how much you are spending.

There are three major credit reporting agencies that track your credit history throughout your life - Experian, Equifax and TransUnion. These agencies keep records of every credit card, loan and debt you have. They track the payment history, outstanding balances and unpaid debts and obligations. They assign a credit score based on your credit report.

Credit scores range from 300 to 850. The higher the score, the easier it is to get credit. The lower the score, the harder it will be to get credit. When you have a high score, you get the best interest rates, favorable repayment terms and have more options available.

3. Credit can hurt you

If you have misused your credit, your credit history can negatively affect your life. Lenders will look to your credit report to see if you are able to repay loans. If you have poor credit, you won’t be able to find good interest rates. Your insurance premiums, ability to obtain a cellular phone, ability to rent an apartment and some job opportunities are directly linked to your online redit report and scores. Without a good credit history and credit score, your options are severely limited.

4. Credit can be stolen

It is easy for someone to use your personal information to obtain credit in your name. Identity theft is a fast growing crime. Someone can simply use your name and leave you to pay the bill. You have to protect your account information and Social Security number. Never give any information out to unknown sources. Protect your passwords and account numbers. Be selective on who you do business with. If you have any doubt, don’t give out your information or sign anything.

5. Credit can be beneficial when used wisely

If you are smart in your spending, you will find that credit can be very beneficial. It can allow you to buy a home, help you get an education and someday it can help fund your business venture. By wisely choosing when and how you use your credit, you are able to make your life better. Save your credit for things that will pay you back.

One of the best things you can teach your teen is how to use money wisely. This involves all aspects of financial management, from credit to saving. Discuss the basics of finance with your teen and warn them about the pitfalls of debt. By teaching your teen how to manage money, you will give them skills that will pay them for life.

About The Author:

Linda Meadley is very knowledgeable in the field of credit. Throughout her 20 year career she has worked as a mortgage and loans office, credit manager and financial advisor, assisting consumers in their financial endeavors. Her website is packed with great information and tips, including how to obtain absolutely free credit reports

Copyright © 2005 Ultimate Credit Report

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There are many ways you can get a free credit report. Listed below are some different ways to obtain a free credit report.

If you were recently turned down on an application, and they used your credit report as some basis for the rejection, you are entitled to a free copy of your credit report. In an instance such as this, you will receive a letter in the mail advising you of the rejection, as well as the credit bureau used, and how to contact them to request your free report.

You can get a free online credit report if you sign up for a trial membership in a credit monitoring service. You can cancel the membership before the free trial period is up. If you keep the service however, it will keep you updated on your credit, especially new entries and updates from creditors.

Another way to get free credit reports is to write a letter to the reporting bureaus, tell them you think you are a victim of credit fraud, or identity theft, and request your report so that you can review it and take action. This option isn’t really recommended unless it’s actually true, since advising that you may be a victim of credit fraud, or identity theft, could put a notice on your credit file. If this happens, you will have more hassle when you apply for credit.

Since it is quite common for each bureau to have different data about your finances, you can purchase an Online 3-in-1 Credit Report to get all your information from all three credit bureaus at once. This makes it a lot easier to review and compare all three reports at once.

With a compiled report, you can easily see if there are any errors, misreported information, or fraudulent activity on your record. You can also see which creditors are reporting on you, and which are not. With the Online 3-in-1 Credit Report, you also don’t have to learn the different codes each uses to decipher and evaluate your credit. You receive an easy to understand, plain English report.

USFMGroup.com COPYRIGHT 2006

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According to an amendment to the Fair Credit Reporting Act, you can obtain a free credit report on yourself for free one time every year. However, just like with any new law or service, there are people out there looking to take advantage of you. So be aware of what you see when looking for your credit report; not every service claiming to offer you a free credit report is actually offering one.

To get your free credit report, you really only need to go to the annual credit report website. If you go to the Federal Trade Commission’s website, you will find all the information you really need to get your free credit report. You only need your name, social security number, date of birth, and address to get the free report. As easy as it is, there are still many companies out there who want to get the business of people like you who are seeking their free credit report.

One way these companies take advantage of people is by establishing a web address that is very similar to the legitimate government websites for obtaining a free credit report. They will harvest your social security number, address, and other personal information under the claim that you will get a free credit report. Remember, you can get one by going through the Federal Trade Commission. Be aware that you should never have to supply a credit card number or telephone number to obtain your free credit report. Your address, name, social security number, and date of birth are all you need.

You should never respond to an email to get your free credit report. Remember that that getting the report is a right you have. Some companies, in an effort to get your personal information, will send spam emails advertising access to your free credit report. These companies are usually just Phishing for your personal information. Never respond to emails to get your credit report. Instead, the information is easy to obtain through the proper government channels that are readily available to you.

Congress has given you the right to obtain a free credit report on yourself once every year. The government has given you access to the free report through the Federal Trade Commission website so that you do not have to worry. You will get emails, see on line advertising, and even get pop up ads that advertise free credit reports. Keep in mind, though, that many of these companies are not interested in getting you your report as much as they are getting a hold of your information. There is no reason to use these companies, legitimate or not, to obtain your free credit report when you can do it through the Federal Trade Commission. Your information is vital to your financial well being and in the wrong hands could do a lot of damage to your credit. In order to avoid these pitfalls, the best thing to do to get your free credit report is to go through the government.

If you would like more updated information on my credit report resources, or read more articles like the one you just read, please feel free to visit my credit report blog.

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