Free credit report from the government is the best gift to every American. Without a doubt it is pertinent information on paper that gives details on an individual’s financial standing in the market. His financial power and his credibility can be ascertained with the help of this free annual credit report, which he is entitled to once every year. This is a crisp and decisive tool for both; those who want to take current prime interest rate and for the financial institutions as well. Some people who are smart will request their free credit annual report well in time. Those who are not even aware of it or do not consider its importance, regret later when they come to know of the interest rate being much higher than what they expected it to be.
Who maintains the record of credit transactions?
It is extremely essential that everyone requests for this very easily available free credit report from the government. Moreover it is absolutely free and you will not have to pay for any report that you take, irrespective of the mode. There are three agencies that keep and maintain a record of any transaction that you make through credit. These agencies were established many years ago with a sole purpose of making an assessment of and putting together related information about potential people who could apply for a loan. These are Experian, Transunion and Equifax. You can collect your annual credit report from all of them at the same time or after a gap of some time. It is better to collect spacing out time so that you are updated on your credit history throughout the year.
Where to get online report and its benefits? AnnualCreditReport.Com
There is only one site that is approved to give you online free annual credit report. This central website has been set up with the collaboration of three agencies and is popular as annualcreditreport.com. Any person can use his credit report to confirm his identity as well as to prevent his identity from being stolen as happens quite often. For taking any loans on current prime interest rate, you can show your report to the creditor and he will expedite loan process. With the help of this credit report, you will be able to know your exact creditworthiness from time to time. There are experts who can tell you how to improve your credit scores.
There are a number of ways that people use to be able to see their credit reports. Many go to the individual bureaus to request a report and some subscribe to pay-based websites, but perhaps the most popular is to use the government-sponsored Annual Credit Report website. This website allows a user to, once a year, see his or her report from each of the three major bureaus: TransUnion, Experian, and Exquifax.
What many people do not realize is that the Annual Credit Report website does not tell them even nearly as much information as is really needed. In order to really keep track of their rating and watch out for identity theft, a consumer must not only see the report, but also the score, which Annual Credit Report does not offer. Also, one must see the information held in such a report more than once a year. A lot can happen in a year, and that could include identity theft. If one’s identity is stolen, waiting six months to a year to find out about it and deal with it is simply unacceptable.
The solution to this problem is to just not use this government website. Far better alternatives include subscription-based websites such as freecreditreport.com and creditreport.com. These websites have a number of advantages over Annual Credit Report. For example, they not only give the report, but also the score. They give all of the information at once, making it very easy to see differences and possible errors in one’s report, and allow a user to view their report about once a month, which is an adequate period of time to check for identity theft. The cost of the service is minimal compared to the benefit, at about 15-25 dollars a month, and this includes, in most cases, free monitoring on one’s report. AnnualCreditReport.Com
The monitoring service is perhaps the largest benefit that one gets. These websites will watch one’s report for a subscriber to ensure that it only shows standard activity. For example, if they know that the customer has enough credit/debit cards, and suddenly a number of credit card accounts are opened in his or her name, they will contact the subscriber and inform him or her of this abnormal activity. This is the ultimate proactive identity theft protection. If anything goes wrong one can be sure that they will know about it. And the sooner that one learns of identity theft, the easier it is to stop.
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AnnualCreditReport.Com : Credit Score
Your credit score is a number that’s the first of the “three C’s” of mortgage qualification, so it’s important for it to show that you’re a responsible person who does not overextend financially.
If it’s a good-to-great credit score, excellent! But if it isn’t, it can halt your mortgage process right away… and leave you wondering what you did wrong.
However you got your rating, if your credit score is less than stellar, don’t despair. When I get a bad haircut, I remind myself that it will grow back. A bad credit score? Well, it’s not written in stone, and there’s a lot that you can do to improve it!
So what can you do to improve your score so that you can qualify for a mortgage?
The first thing you want to do is start by cleaning up your finances:
- The first debt you want to get rid of is your credit card debt: it’s the most expensive debt you’ve incurred, and the way that you deal with your credit cards shows lenders how you deal with your finances in general. In fact, it’s probably a good idea to get rid of some of them: lenders don’t like seeing too many credit cards accessible to you-it says to them that debt is a usual part of your life.
- Next, pay off any major loans that you might have. Your car loan, for example; if you increase the amount of your payments or add additional ones, you can pay it off sooner-and it will cost you less.
- Start putting money into a savings account. Mortgage lenders look at the depth of your resources: the more you have in savings, the happier they are.
Done? Terrific! Let’s move on. The next step is to improve your credit:
- The steps you took when you cleaned up your finances will absolutely improve your credit score all by themselves.
- Check your credit score. Don’t do it frequently, as doing so can be a red flag to lenders. But get a baseline and then check it again in six or eight months to see the improvement you’ve made. There are a number of places that offer free credit reports… just read the fine print and don’t end up signing up for something that you don’t want, in addition to the scores that you do!
- When you check your score, don’t just look at the number. Read the report. You may find-as a lot of people do-that there are mistakes on the report, mistakes that can cost you dearly.
- Look at the reports from all three credit bureaus (Experian, Equifax, and Transunion), and check every entry for accuracy. If there’s a negative item on the report that is inaccurate, you can file a dispute by writing a letter (not an email) to the credit bureau that logged the negative item with any documentation you have; the bureau will then investigate. Having even one negative item removed can make a tremendous difference in your score.
- If you have a past credit problem that was supposed to be eliminated from your credit report but is inexplicably still there, you’ll need to notify the reporting bureau as well. These problems can include:
- Bankruptcy (should disappear after 10 years)
- Lawsuits (should disappear after seven years)
- Tax liens (should disappear after fifteen years)
You may think this is enough. But it’s not… because whatever got you a bad credit score in the first place can easily do it to you again. This is your chance to start over and to get it right!
So, to that end, make sure that you establish good financial habits:
- Your payment history contributes 35% to your overall credit score. There are a few things that you can do to be sure your bills get paid on time:
- Most creditors will automatically deduct your bills from your checking or savings account at your request. This is particularly useful for your monthly utility bills, rent/mortgage payments, car payments, etc.
- You can also set up an automatic bill-pay via your bank for those that don’t provide automatic deductions.
- If you still prefer to write individual checks, set up a reminder system that alerts you a day or so before the check needs to go out. Your computer calendar system can probably do this for you.
- Don’t move your debt around from card to card, no matter how enticing the “new” interest rate is. Pay it off instead.
- If you’ve been late with bills in the past, make sure that you get current and stay current. It won’t happen overnight, but it will increase your score as the “past due” reports slide further and further into the past.
- Don’t own too many credit cards. If you find yourself in extraordinary circumstances (sudden unexpected medical or dental bills, for example), add a credit card at that time as necessary; don’t keep them just lying around waiting to be used.
- Save, save, save! Even the smallest amount of savings can grow. AnnualCreditReport.Com
Following these steps will increase your credit. It won’t happen overnight, and it’s a lot of work… but in the end if home ownership is in fact your goal, this is how you’ll get there!
And once you’ve taken these steps and waited for the scores to catch up to your new ways, you’ll be in a far better position to apply or reapply for a mortgage!
If you’re looking for a mortgage (or financial planning assistance to qualify for one) in southern Florida, Avrus Financial & Mortgage Services is here to help you. At Avrus Financial, it is our mission as mortgage consultants to find you the lowest possible rates, while at the same time providing you with high quality customer service.
AnnualCreditReport.Com - People need a credit report for several reasons. Some need it to view their credit history while others use it to determine a person’s capacity to pay for loans. The information found in a credit report contains the financial background of a person such as his payment history and past and existing debts among other things. It’s like a person’s financial diary that contains data on how he pays his bills and loans.
While a free credit report may be given to individuals and financial institutions for a fee, a free report can be requested annually. The Fair Credit Reporting Act in the US has allowed major credit reporting companies to provide a free report to anyone who requests it once every year. If you’re a US citizen, therefore, you are entitled to this yearly benefit so long as you ask for it.
In the US, major players that offer reliable credit history reports are Equifax, TransUnion and Experian. These agencies are required to grant a free report to an individual who requests it once yearly. Any US citizen can request this online at a site called Annual Credit Report or visit the offices of any of these companies.
The data contained in a person’s credit history is non-biased as it only informs the reader of a person’s paying habits. The report doesn’t make a judgment on whether one is a good borrower or not. That decision lies on the lender or financial institution to which the report is presented to. However, since everything that you do in terms of handling bills and payments are recorded in the report, the information found in it has a huge impact on your chances for a loan or credit.
A person’s credit history in one country begins the moment he applies for credit. When a person applies for a loan, his data is immediately forwarded to a centralized system known as the credit bureau. Thus, if a person defaults payment with one creditor, this will be shown on his record and affect his chances of getting approved by other lending institutions. The system basically protects lenders against people who don’t have any intentions of paying their obligations.
There are a lot of companies that charge a fee when you ask for a CreditReport. These companies in fact, really go out of their way to promote their services. You always have the right to say no to these offers and choose to get your free credit report annually. Beware of websites that ask you to present your credit card information and sign up to their services. A real free report should just be offered as is with no credit card or sign up requirement.
From the time your credit report was filed up to your most recent debt, your credit history and paying habits are recorded for a lifetime. It is therefore very important to keep a clean record most especially if you plan to loan money to buy a property or start a business. This report may just be a simple document but it has a huge effect on a person’s life and career. As a US citizen, you are entitled to get this document for free on an annual basis.
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Annual credit report request form is required by an individual when he wants to check his credit ratings. It is very essential to avail the annual credit report due to numerous reasons the prominent among them is the detection of identity thefts. It shows in detail the repayment pattern of a consumer towards the lenders to which he owes money. It is the indicator of your borrowing and repaying habits for a particular year which acts as a guide for lenders while verifying your loan application.
Ordering individual company reports at different times during the year gives you a chance to monitor your credit report more frequently without having to pay for your additional reports. Ordering it can help you be aware of your credit power or in some cases your lack of power. Ordering your free report is the first step to taking charge of your financial situation. It sounds scary, but it’s not, the hardest part is getting started.
Checking your own credit, placing a fraud alert or subscribing to a monitoring service does not cause a hard inquiry. Inquiries stay on your credit report for up to two years. However if a lender or a credit card company checks your credit report, it goes down as a hard inquiry and may cost you five points.
Checking your score is necessary. Checking the information on your credit report on a regular basis can help in two ways. First, it can alert you to any fraudulent activity that has been taking place with your name or your accounts.
Check out our videos on identity theft and especially medical identity theft. Checking your credit reports should be good to tell you if everything there is OK. Checking your credit through the credit bureaus directly can cost you as much as $9 per report, although it differs from state to state. You can request that the report be mailed to you or obtain annual credit report online.
Check with your financial institution about the interchange fee that takes place. Usually, by selecting “credit,” your institution collects a small fee from the merchant. Check your state laws to see what you are guaranteed! Check your credit report at least once a year to correct errors and detect unauthorized activity.
Free annual credit report is a document that contains all your relevant personal and financial information such as your full legal name, your date of birth, and your social security number. annual credit report also contains your current and previous addresses, and current and previous employment information. Free yearly credit report helps you to keep a check on your credit standings in the market. By availing this report you can evaluate your credit conditions that can prevent you from bad credit report. Free instant credit report is provided by any of the three major credit bureaus. The credit report which is basically annual report of your credit history gives you the detailed information about your financial position in your credit dealings.
The following information is on your credit report such as your residence history, open accounts, derogatory reporting, public records, open accounts, closed accounts, outstanding balances, minimum monthly payment amounts, outdated ratings and inquiries. If you find errors or questionable activity, there are additional steps you will need to take in order to get the information updated and corrected.
Identity theft is happening every second in American and if you have a credit score, it makes you a target, which means everyone is now a potential target in the arena of identity theft. Identity theft: When a person gains access to your credit card details like the PIN or the S.S.N, it is called identity theft. A person can use your credit card and can substantially ruin your financial life.
Request that the fraud department flag your file with a fraud alert. You may also wish to consider asking the three agencies to put a freeze on your credit reports thereby locking out anyone seeking to open an account or fraudulently establish new credit in your name. Request and receive a free copy of your credit report once every 12 months from each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion. The three companies have set up a central website (annualcreditreport.com), a toll-free telephone number (1-877-322-8228).
Lender that you applied with is obligated to give your name of agency from which he acquired your credit information. Also he will have to furnish you with a valid reason for loan rejection. Lenders always check your report before giving approval. And if your loan denied, you can call for your credit report anytime. Lenders looking to issue credit in the name of someone with a credit freeze will be unable to access the credit history without your explicit permission.
Errors in your credit report can affect your credit score and, in turn, your ability to get a loan or to obtain a favorable interest rate. You are not required to order your credit score. Errors on your credit report can cost you in higher interest rates. Things on your credit report can last a long time, especially if you’ve ever declared bankruptcy.
Thank you for taking your time to read this article. Your comments on this article will be highly appreciated. Information shared here does not constitute financial, legal, or other professional advice, and no attorney-client or confidential relationship is or should be formed by use of the site. This article is intended to provide general information only and does not give advice which relates to your specific individual circumstances. Information in this document is subject to change without notice. Any link-listing or ad-listing on this site does not constitute any type of endorsement.
Gurmit loves travelling; he has been over 70 countries.He speaks fluent Cantonese, Polish, Hindi, Punjabi and English. Gurmit is an author, writer, insurance and mortgage expert. He frequently writes on various topics of interest to his readers. Gurmit Singh is a licensed mortgage expert with Dominion LendingCentresMortgage Villa.
Gurmit Singh, MBA
Dominion Lending Centres Mortgage Villa (11574)