3 Credit Reporting Agencies

There are many private credit bureaus which state they would offer credit reports. But beware. They could be scams. In the US there are only 3 credit bureaus which offer credit reports. These give a fair idea to the creditors whether they are taking the right decision while lending the money to the individuals.

What are credit reports and how does the credit score affect a person:

All the 3 credit bureaus Experion, Transunion and Equifax are actually helping the stakeholders i.e. the creditors in this case earn their bread and butter. These bureaus provide the credit report and also counsel you on what modifications you need to make. They also keep you posted 2 times a year on the status of your history and also caution you when you are about to exhaust your limit.

Your credit score which reflects on the credit report plays a very important role in your standard of living. One must understand that the reports generated by these credit bureaus may not tally with each other in all respects. The approach adopted by these credit bureaus may be similar in fashion. One would notice that the report generated by these 3 credit bureaus would more or less imply the same thing. A credit report includes the name of the borrower, his address and the name and address of his employee, place of work etc.

Information or data related to his past credit – whether he or she has any past pending loans or mortgages to be cleared – credit balance at the banks etc.

Pattern of payments – it gives an idea of your past payment pattern. How regular or irregular one has been with respect to settlement of monthly bills, loans etc.

Legal records – whether there are any cases of litigation or legal case proceedings in the court of law against you.

Your personal statements – It is mandatory for an individual that he provides a statement containing all the personal information.

Most information contained in the credit report should have error free information. One should ensure that you give attention to details in the credit report. Credit bureaus have good contacts with creditors and financiers. Since they are in the industry since a long time, it enables the credit bureaus to generate error free and accurate reports. Each credit bureau would have its set pattern relating to the past history of an individual’s credit pattern. Each credit bureau would generate reports based on the credit score of the individual.

Credit bureaus main source of income is the technology of credit scoring. The credit bureaus generate credit reports based on the individual’s credit score which enables the creditors to decide whether it is worth giving credit to an individual or whether the individual is credit worthy.

Calculation of credit scores: Credit bureaus use the FICO score to arrive at the credit score of an individual. Most of the creditors work in close association with credit bureaus to arrive at a decision. In case you are moving to a new residence and you need an electric connection, the electric company would first get in touch with the credit bureau to find out your creditworthiness.

Cell phones: While purchasing a cell phone also, the cell phone company would first confirm with the credit bureau regarding one’s creditworthiness.

Accessibility: Every individual has free accessibility to credit reports. Individuals can contact the credit bureaus and get their free credit report annually. You need to pay a fee to the credit bureau for getting your credit score.

It is also important that one checks the credit report for any errors or ambiguity. One needs to also ensure that the credit report is up-to-date, accurate and clean before applying for a loan.

Government Free Credit Report

The Federal Government has recently passed a rule which states that every individual is at liberty to receive his or her free credit report every year. It is true that many people are not even aware of this rule. This rule has been passed by the Federal Government with effect from 1st September 2005. The Government has segregated the country by parts so as to ensure effective control of enquiries. So every region or State in the US has a different date from when this law has been effective. These rules and regulations have been specifically passed by the Government to ensure that there are no problems relating to the credit dealings and also to ensure that fair business is transacted between the individuals.

How to ensure getting your free credit score:

Once you have received your free credit report from any of the credit bureaus, you must ensure that the entries passed in the report are free from errors or ambiguity. The sooner your detect an error, you can pass on this information to the bureau who would thereafter look into your case and ensure that the error is rectified. Sometimes, it would take a very long time to correct the mistakes in the credit report.

Procedure for a free credit report:

It is one’s right to claim a copy of the credit report every year from each of the 3 credit bureaus. You could browse the net and file in for a free credit report from the credit bureaus. All the above 3 credit bureaus have also a common website where you could post your request for a free credit report.

In case one wants to have the report delivered through mail, then one needs to send a request in writing along with 2 Xerox copies of your identity. You would then receive your credit report by mail. Getting your credit report by way of tele calling is not possible, since they do not entertain phone calls.

How does one ensure a free credit report from the Government?

Our credit score decides our eligibility for a loan from a Bank or a mortgage loan from a financier. At some point or other, the need for a credit score is felt. Even insurance premiums are decided on the basis of the credit score. In case you have managed to earn a good credit score, you can be assured of a lesser insurance premium. Your credit report also gives a fair idea of your credit score and the number of times you have applied for credit. Whether it is worthwhile giving you more credit? Whether you would be able to fulfill your payments on time? Whether you would be a defaulter by any chance?

Free credit report”

Before one actually puts down the application for a loan, it is advised that one checks the credit report and credit score, to get an idea of one’s standing. You could try other methods to find out whether you could increase your credit score in any way.

Why one needs to check the Credit report?

One cannot trust the credit bureaus completely with regards to the credit reports. One also needs to have an understanding of what encompasses a credit report. One should be smart enough to check the credit report to see if everything is okay and there is not absurdity in the reports.

Errors detected early can help in quicker rectification. The longer the time taken to identify your errors, the longer the credit bureau would take to rectify those errors.

Experian Credit Watch Program

If one is a victim of identification theft, then it is an absolutely irritating, expensive affair. When you are not equipped with the right information, then it could be very frustrating. Experian is a credit bureau which helps people in setting their credit records. They generate credit reports and on that basis, the banks and financial institutions guarantee you a loan or a mortgage loan.
In case you have registered with this credit bureau, it is easy for you to get your credit report. You only need to click on the button and view your current report. Experian also gives free credit report either online or on the telephone.
Your credit report could be affected due to frequent changes in your job or employment, frequent change of residence. It could affect your credit rating. This would shut doors in case you need to change your residence. You need to keep checking whether you have received a notice from Experian that you could view your credit results. Experian would also give you free credit reports.
One is advised that he or she maintains an error or ambiguity free credit file. One could request Experian to forward them a free credit report. Experian also caters to a wide variety of information namely with regards to credit information, bankruptcy details, consumer loans etc.
One can always request for a free credit report. Once you have received it from any of the credit bureaus, you need to file it and maintain it for future records. The free credit report gives us a fair idea of the information relating to dates when there have been transactions related to receipts and payments etc. In case you come across any errors in the report, it is mandatory and imperative that you report such cases to the bureau so that they could effect the necessary changes in their records. This way you could also be saved from future problems if any.
Individuals order these free credit reports when one has subscribed for a credit monitoring service. As per the government law and federal law, every individual is entitled to a free credit report from Experian.
The very essence of your credit health is the credit score which is reflected in your credit report. These bureaus make a thorough study and analysis about your creditworthiness. The report normally give a view about the credit history, the different types of accounts your have maintained, the frequency in which you disburse your pending amounts, the credit amount you have used and the credit amount which is still pending with you. It also gives you a snapshot of how effectively you have maintained your credit.
It is mandatory for credit bureaus like Experian to effect changes in the credit report within a stipulated period of about 30 days. They have to effect the correct entries in your credit report. The bureau should also look into any ambiguity or errors in the reports. Any misinformation in the report which has been termed an error, but cannot be justified as an error, needs deletion from the records.

Free Yearly Credit Report

The holiday period of the year is usually accompanied with lot of fraudulent credit card cases, theft with regards to identification of a person. One needs to ensure that one keeps a check as well as track on his/her credit report. So then how do you go about this checking of credit reports. Let me explain this to you. One needs to check one’s credit report with regard to the following points:

• Any case of errors/ambiguity
• Any cases related to fraudulent entries/identification theft
• To enable one to avail of the best possible interest rate
• Since many lenders rely on credit score, need to update your report and maintain an accurate credit report.

Time when you need to check your credit report:

One is advised to check one’s credit report when one is absolutely sure of one’s credit records and you do not anticipate any major purchases in that particular year.

Always ensure an accurate credit report before you apply for a loan or a mortgage of a bank so that you have enough time in correcting and rectifying any errors, if any. An inaccurate report would be the reason why your request for loan could be rejected outright.

In case you have not been able to get a loan sanction from the credit report submitted by the credit bureau, then you have every right to ask for your free copy so as to find out the reasons behind the rejection of the loan by the bank or the lender.

You also need to check your credit repot in case you are a victim of identification theft.
In case you intend to clear your negative credit score and start afresh, you need to keep a check on your credit report.

How does one go about checking his or her credit report?

The 3 bureaus which are connected with the credit report are Equifax, Transunion and Experion. It is mandatory that you get your free credit report from either of the agencies annually. You could cross check the reports of all these 3 agencies because the reports do not normally tally with each other. You could check for discrepancies and errors if any and report the matter to these agencies.

Try and order the reports from these agencies giving a gap of 1 month in between, so that you have a correct picture of your credit score. Compare the reports thoroughly. There is this bureau which is the annual credit report.com site which gives a free credit report online. One can check one’s credit score without having to shell out extra dollars. There are other private agencies who do offer this service, for a fee but one is advised to be aware of such scams.

Another alternative to check out if there is any fraud is to order for a 3 in 1 report from Myfico.com. One is advised that one checks one’s credit report periodically so that you do not fall a prey to frauds and identity theft. You are also aware of any errors if any or wrong entries passed in the report. Even otherwise you need to be extra careful with regards to keeping a track on your credit reports especially during the holiday season when there are maximum chances of identity thefts, errors and frauds.

How to Get Your Free Credit Report

The major credit bureaus like TransUnion,Equifax and Experian offer credit reports to individuals who are keen on getting loans for car, credit card or any type of consolidation loan. An individual has a clear picture of his credit report. The reports give a clear picture of the present and past amount outstanding, his previous payment itinerary. This could also include other options like foreclosure, insolvency if any etc.

The credit report normally give a FICO score. This FICO score is calculated on the basis of the past records of the individual. His ability to effect payments on time and whether he has cleared his previous debts on time etc. FICO score also is the deciding factor for future loans as well as the interest calculation.

Your future lenders would be in a better position to determine your fairness depending on the FICO score generated by the reports of the credit bureaus.

FICO score if found positive then there are fair chances of your loan sanction getting approved. If there is a negative score, then you can kiss goodbye to your chances of getting your loan sanctioned. Default payments effected by you would also negate your FICO score.

An individual is entitled to receive a free credit report copy from any of the 3 bureaus mentioned above. There are many websites which offer services, but everything comes for a price. There is only particular website which charges absolutely nothing for a credit report. Individuals can access that website and be rest assured that they would get their credit report free of charge. The basic credit report is absolutely free, without any price, but if you are interested in knowing your FICO score, then you definitely need to pay a few dollars. This FICO score report does not come free from any of the bureaus mentioned above.

Not only is an individual entitled for his free credit report annually, but he could also order a free copy in case he has not been granted his credit. The individual could either email or telephone the credit reporting agency to get an explanation regarding the reasons for the denial of his credit. Effectively, a free credit report would be available in your inbox with a period of 7 to 10 days maximum.

It is mandatory as well as advisable that an individual keeps a track of his credit reports. One needs to maintain a robust credit rating always so that he is saved from any corruption regarding his individuality. Individuals are advised that they audit their credit reports six monthly and in case they find any discrepancies regarding their payment schedule, status of accounts etc, they could report the matter to the credit bureau. The credit bureau would then go through their reports and find out for any errors, if any. One needs to ensure that their credit reports are free of ambiguities and error free. This would ensure a smoother loan sanction.