Regularly reviewing the credit report is an essential step in maintaining and building good credit. Fortunately, every resident of the United States is entitled to one free credit report each year from each of the three credit reporting agencies – Equifax, Experian, and TransUnion. These agencies provide credit reports that are regulated by the Fair Credit Reporting Act (FCRA), and are the same agencies used by prospective lenders and employers to examine applicants’ credit scores.
Information contained on a credit report includes credit repayment history, previous residency information, past legal issues, and other facts that are indicative of a person’s financial stability. Ensuring that this information is accurate and up-to-date is a crucial aspect of being approved for loans, credits cards, rentals, mortgages, and any other type of financing.
Ordering Free Credit Reports
Since the information contained on each credit report may differ slightly, it’s important to obtain a free copy from each of the three credit reporting agencies. The best way to do this is to request the reports online at the home website of each one. After providing basic personal information such as name, address, and Social Security number, the free copy will be sent via email or displayed in real time on the website. It’s also possible to receive a paper copy via mail by calling the agencies.
Comparing and Reviewing the Free Credit Reports
Due to varying methods of data collection and calculations, each credit report and score may be slightly different, and information regarding repayments and debt may appear on one report while being absent on another. Thus, it’s important to cross-check the reports and look for any discrepancies or erroneous information that needs to be corrected. Reviewing every date and number on each of the credit reports is essential in avoiding unnecessary damage to the credit score due to faulty reporting. If a discrepancy is found, the credit reporting agency should be contacted immediately via phone and a dispute should be sent via mail along with the appropriate documentation.
Avoiding Scams
Unfortunately, there are a lot of scams in the credit reporting industry nowadays, and according to the Federal Trade Commission (FTC), even advertisements seen on TV are not to be trusted. The internet is littered with sites that claim to offer free credit reports, yet only serve to gather personal information such as Social Security numbers for fraudulent purposes. Never submit any personal data online (especially pertaining to credit cards), unless it’s over a secure connection on a trusted website.
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Tags: Credit Report, Free Credit, Free Credit Report, Report
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