Free Credit Report

What’s my Credit Rating? Why is it important?

If you’re like most of us, you probably don’t even think about your credit rating until it’s time to apply for a credit card, mortgage or car loan. A little known fact is that people with a ‘good’ or ‘excellent’ credit rating can pay a significantly lower interest rate when they borrow money. This wonderful news can mean a savings to you of hundreds or even thousands of dollars over the life of a loan. Why do banks and credit unions give you preferred treatment when you have a good credit rating? Because you have proven to them that you are trustworthy in handling money, pay your bills on time and are responsible for paying back your loans.

What is a credit report and how can I get one?

A credit report is a list of how much credit (money in the bank, equity in your house) you have available, how much debt (unpaid credit card balance, car loan, unpaid mortgage balance) you have and a record of how well you pay your bills in a timely manner. Thanks to the newly enacted Fair and Accurate Credit Transactions (FACT) Act, you can receive one FREE credit report a year from any of the 3 major credit bureaus. You may contact Equifax at www.equifax.com or 800-685-111. You may contact Experian at www.experian.com or 888-397-3742. Or you may contact Trans Union at www.transunion.com or 800-916-8800.

What’s my FICO score?

The first step to improving your credit rating is to know what your FICO (Fair, Isaac; named for the company that created it) score is. Your FICO number tells your lender how likely you are to pay back your loan on time. Your FICO score can range from 300 to 850; the higher the score the better. Your FICO score is not listed on your free credit report but can be purchased from any of the 3 major credit bureaus listed above, for less than $10. Is knowing your FICO score worth $10? Absolutely. Or if you have recently applied for a loan, your lender may be able to tell you what your score is.

What practical difference does my FICO score really make?

Let’s suppose that you have found your dream house and go to apply for a mortgage. If you have an ‘ok’ FICO score of 620 you may qualify for an interest rate of 7.5%. Now if you have an ‘excellent’ FICO score of 775, you may qualify for a lower interest rate of 5.9%. Big deal you say? What if I told you that you could save over $3500 a year (a year!) for a 30 year fixed rate mortgage on a loan for $220,000. That’s a big deal! The average FICO score is 723. You want to aim to have yours be even higher than that and begin to save money on every loan you have.

OK, I’ve got my credit report, now what?

Go over your credit report with a fine tooth comb looking for errors and inaccuracies. You may be surprised to find credit cards listed on your report that you no longer use, inaccurately reported late payments, or credit cards listed that you’ve never even applied for. In my next lesson, we’ll discuss what to do if your FICO score is less than it could be and how to repair errors and inaccuracies to your credit report.

Beth Gabriel is a successful Webmaster and publisher of PrePaid-Legal-Help-4U.com. She provides more Identity Theft information and reviews on Credit Reports that you can read on her website from the comfort of your home at 2:00 am!

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A good credit score can be an asset when you need it most. But if you don’t regularly monitor your credit status, your credit score can become a liability. Have you checked your credit report lately?

By law you are able to obtain a copy of your credit report free every 12 months from each of the three nationwide credit reporting agencies, Equifax, Experian, and TransUnion. The three companies have formed a central agency so that you can request a copy from all of them at once. It’s called Annual Credit Report and can be accessed online.

This free credit report can be a valuable tool in maintaining your lifestyle and can save you money. By monitoring your credit report on a regular basis, you can catch any errors that may have been recorded and see that they are corrected immediately. Also with the increased crime of identity theft, with a vigilant eye on your credit reports, you can catch any funny business early.

There are just a few things you need to do to maintain a good credit score.

-First and foremost, make your payments on time.

-Stick within your budget and manage your debt.

-Do just what you’re doing and monitor your credit report regularly to correct any possible errors.

-Try to avoid any unnecessary inquiries of your credit report, as each request can be marked against your good credit score.

-Reduce your credit card balances if they’re limited out.

-If you don’t have enough credit history, you may consider applying for new credit.

By carefully reviewing your credit report on a regular basis, you can be sure that you maintain a good FICO score. “What is a FICO score?” you say.

The FICO score is the ‘grade’ with which financial institutions use to judge the risk they take when extending you credit. The higher the FICO score, the better. The scores generally range from 499 - 800 plus.

By keeping a close watch on your credit reports, you can help to protect your good credit. Whether it’s a car loan, credit card, or mortgage, your credit score can dictate the interest rate of your new loan. A good credit score can save you money.

About the author: Bradley Carson is the webmaster and editor of Apply Online For A Credit Card at http://www.cards-king.com. A website established to provide concise information about credit cards and credit card offers from premier financial institutions.

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If you are trying to avoid a bad credit rating, one of the most important preventive steps you can take is to request and analyze your credit report. Credit reports summarize your credit history usually for the last seven years and are usually detailed with information about active credit cards you have, mortgages, and any other loans you have outstanding. Depending on the credit information that the credit bureau receives will determine your credit score

There are three large credit bureaus that compile lending information and calculate a score for each individual. The three credit bureau companies are Experian, Expedia and Trans Union. If you want to improve your credit rating or make sure credit score is accurate, it is important that you request a credit report from either one credit bureau or all three of them each year.

Most states have enacted legislation that enables an individual to request a free credit report each year. Other states may require you to pay a small fee, usually $10 or $15. Once you receive your credit report it is important for you to go over the report to make sure your credit rating is accurate. Most credit reports usually have an information booklet that goes over how to read your credit report and will list example reports for increased understanding. You can then view your credit report and make sure that the information is factual.

From time to time, there may be discrepancies listed in the credit report. This may be due to inaccurate reporting, identity theft or fraud. If you analyze your report and notice a discrepancy it is important for you to contact the credit bureau immediately as well as the lender that has reported negatively to the bureau.

It is also important to analyze your credit report to determine if any credit cards or loans have been taken out without your knowledge, this usually points to identity theft or fraud. If you are looking to improve your credit rating or would like to protect yourself from theft and fraud, request a credit report annually and analyze it thoroughly.

Connie Barker is the owner of several financial websites including those dealing with Credit Reports

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