How to Get Your Credit Report
Obtaining an annual credit report is a must-do for any smart consumer. Credit reports are utilized by banks prior to lending money and are also used by many employers prior to handing out job offers. If you want to ensure that you have access to cash when you need it and that you do not miss a potential job offer because of poor credit history, be sure to check over your credit report at least once per year.
Where Do I Get a Credit Report?
The good news for consumers is that getting a copy of your credit report is free. The Fair and Accurate Credit Transactions Act of 2003 requires credit reporting agencies to provide consumers with one free copy of their credit report every year.
To obtain your free credit reports, go to http://www.annualcreditreport.com/.
The three largest credit agencies in the United States, Equifax, Experian and TranUnion, jointly operate this website.
Once on the website, you must register and provide identifying information, including your social security number. The website then directs you to each agency’s website for further verification.
You have the option to obtain all three credit reports at once or to stagger the requests. Consider staggering the requests so that you can monitor your credit throughout the year.
What Information Does My Credit Report Contain?
Your credit report contains valuable data about your financial history.
The credit report contains a listing of all credit cards, loans and
mortgages that you have outstanding. Each account lists the account balance
and regularity of payment. If there have been late payments or any action
due to unpaid bills, your credit report will note that as well.
All public record information is also available on your credit report. This includes bankruptcies, tax liens and monetary judgments.
Further, your credit report contains a list of recent inquiries into your credit history. This is a list of all organizations that have accessed your credit report in the last year. Employers can see inquiries for the past two years.
How Do I Use My Credit Report?
Once you obtain a copy of your credit report, check it over with an eagle eye. First, look over each loan and account listed on your report. Make sure that you have not closed out the account, and check over the payment history and any negative notations for accuracy. If you do not recognize certain payments or account information, make an immediate inquiry to the institution listed as the lender. It is possible that someone has applied for a loan in your name.
Also, check the list of inquiries. Ensure that you have approved each inquiry listed on your credit report. Unwanted inquiries can indicate that someone has accessed your social security number. Too many inquiries can also decrease your credit score, so you want to ensure that inquiries are not occurring without your consent.
I Found an Error. How Do I Dispute an Item On My Credit Report?
If you find an error on your credit report, you should dispute it
immediately. Unfavorable items can lower your credit score and decrease your
chances of obtaining financing.
First, report the error to the credit reporting company. Check each agency’s website for contact details. You will need to compose a letter describing the error and the correction that you are seeking. Provide supporting documentation such as copies of payment records.
Second, report the error to the creditor in question. Include a cover letter and copies of any payment documentation. Check the creditor’s website for contact information; many provide a dispute resolution center.
For a complete guide to credit disputes and sample credit dispute letters, see the FTC credit dispute website at http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm.
How Do I Get My Credit Score?
While the free credit reports are useful, they do not provide your credit score. Your credit score is a key piece of information for potential lenders.
You can obtain your credit score through the http://www.annualcreditreport.com/ website. When you click through to get the free credit report, there is an option to see your credit score. There is a small fee associated with this option. The fee is generally around $5-7, but varies by reporting agency.
How Can I Avoid Credit Reporting Scams?
You have probably seen commercials for credit report websites such as Free Credit Report.com. A quick Google search turns up hundreds of sites offering to provide “free” or low-cost credit reports and scores.
To keep your identity safe and to ensure you do not over-spend on credit reports, only get reports from the major three credit reporting agencies: Equifax, Experian and TransUnion. You can obtain reports through http://www.annualcreditreport.com/ or directly through each agency’s website. All other websites simply take your information and transmit it to these reporting agencies to provide you with the same data that you can get on your own.
How Can I Monitor and Protect My Credit?
If you are concerned about identity theft or inaccuracies on your credit report, consider signing up for credit monitoring through one or more of the credit reporting agencies. Each agency offers a variety of services that monitor your credit report for fraudulent activity. These services generally require an annual subscription fee of at least $9.95 per month.
Experian offers Triple Advantage credit monitoring, which allows you to monitor credit reports from all three major agencies on a daily basis for $14.95 per month. The package also includes unlimited Experian credit reports and credit scores. This is an excellent option for those who want to track their credit daily but do not want to sign up for monitoring services from multiple agencies.
Take the time to educate yourself about your credit. Maintaining a positive credit report is the first step to personal financing and job opportunities.