What You Should Know About A Free Yearly Credit Report

Chances are if you're reading this right now about accessing a free annual credit report, you have a bit of a credit problem. It might not be too bad yet...OR...it might be full blown.

Stop credit problems before they start!

You can stop a lot of credit problems before they happen just by staying on top of your credit information that is stored at the credit agencies. How? Get the information on your current credit score by obtaining your free annual credit report available through the agencies.

Then, use that information to help you repair your credit and start on the happier road to financial freedom.
The reason that keeping on top of your credit information can actually help you stop credit problems before they start is because sometimes credit agencies make mistakes. They get wrong information or worse, information on someone else and post it under YOUR name.

Regardless of your situation you CAN repair your credit.

Today, more and more individuals, business people and families are in financial crisis than any time in the last decade. This is because of a multitude of things from job layoffs, the result of a slowing economy, to easy credit card access.

This easy access to credit cards creates a whole lot of credit blues on down the road if you can't afford all that you've purchased on your cards.

Credit problems become an absolute nightmare when you are actually paying out more in interest rate charges on those cards than you are on buying food for the month as has happened to many unfortunate people.

If you are experiencing credit problems, you are definitely not alone!

The key for you to turn it around is to decide you are ready. Yep, a decision to take action is an amazing motivator and once you do decide, you're already on the right road to freedom.

Start on the right path to curing your debt by knowing your credit score and all the entries, good and bad, that make up that score. You'll begin to see where the biggest problems are that damaged your score and even possibly identify some mistakes that could be quickly fixed to improve your score.

There are three credit companies that offer you a free yearly credit report. The companies are: Equifax, Experian, and TransUnion and they are required to offer you the chance to get a free annual credit report every 12 months.

So that part is easy. The hard part is getting your credit in better shape. That is, if you don't know how and unfortunately the media is full of myths and hype about that.

But if you do know how, you can definitely repair your credit yourself!

An entire credit toolkit with advice, letters, forms and ideas on repairing your credit are available at WomenCorp Magazine

There are also some steps that you can take today to begin repairing your credit without paying extra high fees to credit repair agencies.

The first one is to go buy a notebook! You might wonder what having a notebook has to do with repairing your credit, but think of it as sort of an in-house accountant, one that is on call all the time. That notebook will become your friend when it comes to keeping up with your credit repair progress. Check off as you deal with each credit issue and pat yourself on the back too. You're on your way!

Here's why you need that notebook: Backup documentation! Face it, people lose information and creditors' employees change often, meaning you have to start over with someone else if the files weren't passed along. Keep that information to save yourself a lot of time and money when trying to repair your credit.

When you begin taking steps to contact merchants, credit companies and others who may be holding debt, you want to write down everything. In your book, assign 1-2 pages for each creditor to keep your notes. 

You might even number the pages of your book and at the front put an index with the page numbers beside it so you can look them up quickly when needed.

On each page for every action you take with your creditors, list the people you spoke with, what they said, and what you do to follow up. If you have to send them copies of documents, keep a copy for yourself in a file folder for easy reference. It takes persistence and time to make your credit blues go away. The norm in the industry is three to six months from start to finish.

Don't get discouraged!

Getting good credit scores can make a huge difference in your life. First of all, it feels good to know you don't have to worry about creditors hounding you day and night for you to pay up or else! Just think how it would feel if you didn't have to be constantly worried whether you can make your next payment or if you didn't have that burden hanging over your head all the time.

Then, it also means you are on the road to financial freedom. Did you know, for example, that if you have good credit you'll be able to finance purchases at a much lower interest rate?

The road to financial freedom starts with good credit so be sure to keep up with yours by asking for your free annual credit report today. When you begin solving the credit problems that caused your report to show a less than ideal score, you should also begin to do one more thing. Save!

Now you might not see right now exactly how you can both save and pay off your debts. But it is possible! Even if you take just $25 out of every paycheck, the price of a pizza and a few cokes, and put it into a savings account, you'll be shocked at the end of six months how your financial situation starts looking better and better.

It doesn't take a lot to get in good financial condition, but it does take action. So take action today. Get yourself that notebook and write down all your creditors, go get your credit repair toolkit with forms, ideas and advice, then as Nike says "Just Do It!"

Rox Batson is the founder of WomenCorp Magazine, dedicated to helping women in business start and build successful woman owned companies. Find more information on how to start and grow a profitable business at http://www.WomenCorp.org

Credit Reports Demystified

Anyone who has ever applied for any type of credit like a credit card, a mortgage, or even a cell phone has likely had their credit report checked. If the report says that you are late paying bills or have a ton of debt, you could have to pay a higher interest rate or even get turned down altogether.

Scott Mitic, CEO of an Identity Theft Protection service, says it quite well: the "credit bureaus are at the center of our credit-eco system in the U.S. And it's hard to think about a set of companies that are more instrumental in the life that we live".

What is a Credit Report?

A credit report is basically a file that a Credit Reporting Agency (CRA) keeps on you. Despite what many people think, your credit score does not say whether you have "good credit" or "bad credit" and if you are a risk. That determination is made by the lenders. All a CRA does is collect the information and then sell it. The information on your credit report is an important factor, but may not be the only one that determines whether the loan is made.

Another misconception is that your credit report is a "credit score" (you've probably heard of FICO). The credit score is a tool that lenders used based on a special formula that does use the information in your credit report, but the score itself is not part of the report.

Who can access your Credit Report?

Who can see your credit report is outlined by the Fair Credit Reporting Act. Anyone who accesses it must have a "permissible reason" to do so. The groups that can see it are:

• Potential Lenders - Credit card companies, mortgage lenders, landlords, and other lenders are the most common. Whenever they request to see your report, a note of that becomes actually part of the report (called a "hard inquiry"). More on that later.
• Potential employers - A special (less detailed) version of your report. They must have written permission to do so. All they are able to see is how you make payments and handle debt, which (theoretically in their mind) shows your trustworthiness. This is a "soft inquiry" which does not show up on your report.
• Pre-approved credit card offerers - They can not actually see your credit report (thankfully), but they can pull a specially screened list to see if you qualify. This is also a "soft inquiry" which does not appear on your report.
• You - Obviously, you are able to see your own report.

What is on a Credit Report?

• Credit history - Bill paying history (late payments etc.), balances, credit limits, open or closed accounts 
•  
• Personal information- Name, address history, work history, social security number 
•  
• Public information - Information from public records such as bankruptcies, court orders, tax liens, etc. 
•  
• Inquiries - Any company who has done a "hard inquiry" shows up. This is why you want to be careful in how many credit cards you sign up for or loans you request, because every time a company runs a credit check, that becomes part of your report (whether you take the loan or not). 
•  
• Disputes - If there is a dispute over something on a report, both your statements and the lender's will be noted.

What do creditors look for?

 Potential lenders make the decision whether or not to extend credit based on the contents of the report. Here are some of the things that they look for:

Missed payments - Payment history is a large factor. If you have a bunch of missed or late payments, lenders would be less inclined to take a risk of the same thing happening to them

Debt/Income ratio - Lenders want to make sure that you have enough income to handle debt payments

Inquiries - As mentioned, whenever a lender checks your credit using a "hard inquiry" a note is made on your report. If a potential lender sees a lot of hard inquiries over a relatively short period of time, they get concerned that you might be racking up the debt

Open accounts - If you have a bunch of credit cards or loans, even if you don't use them all, lenders are concerned. They want to make sure that if you were to borrow all the amount that you theoretically could, you would still be able to handle it 

 

Maxed-out credit - Do you typically max out your credit cards or lines of credit? That is a signal to lenders that you need to rely on credit to make ends meet

 

What do you do if you see errors?

According to the Public Interest Research Group, 79% of credit reports have errors, and 25% have errors significant enough to make lenders refuse credit.

It's recommended that you check your credit report at least on a yearly basis. If you find a mistake, it can be a long and arduous process to fix it, but it's important that you do. To correct the error:

• Collect and prepare as much documentation as you can to support the correction
• Contact the relevant credit bureau, explaining what the error is. I recommend doing this via registered letter and including copies of all the documentation just to save back and forth later.
• Send a similar letter to the creditor as they will need to be involved sooner or later

Remember that neither the CRA nor the creditor have any vested interest in correcting the report, so expect some frustration when going through this process. Make sure you make note of every interaction with them and record dates, times, and who you talked to.

Legally, the CRA has 30 days to investigate your claim, so keep on them and be persistent.

Your credit report is one of the most important files in your life, and no one has motivation to make sure it is accurate but you. The more you know about it, the more power you have.

Ray Dando is a Seattle based writer who specializes in writing about Identity Theft. He has a website that reviews products such as TrustedID [http://www.trustedid-review.org]. For more information on this and other Identity Theft topics, see [http://www.trustedid-review.org

What Are Credit Reports?

Credit reporting is the most under regulated business activity in the world. There is absolutely no penalty for incorrect reporting. Credit reporting bureaus keep this information in computer databases and provide it to lenders when you apply for a new credit card or loan. Credit reporting bureaus do not make lending decisions. Credit reports are maintained by the credit reporting agencies, frequently called credit bureaus. Currently, there are three major credit reporting agencies in the United States and Canada.

Credit reports are like those roach motels -- bugs check in but they never check out. Credit report is the first thing that creditors look at. Credit report will not hurt their credit and people who have good credit have absolutely no problem with people checking it out because they know it's good. Just as an example, how would they feel if you let someone move in next door because what they wrote on application was great, but the person had been convicted of rape in the past?

Credit reporting agencies (Experian(TM), Equifax(TM), and TransUnion(TM)) are required by law to give you a copy of your credit report upon request at no charge once every 12 months. Credit reports and credit scores influence our lives in many ways. Your history of credit management affects the cost of loans, your ability to rent or buy a home, the insurance rates you are offered, and even your future employment opportunities. Credit report repair can be technical.

Credit report freezes are designed to prevent thieves from opening new accounts in the consumer's name. Businesses generally do not extend credit to an individual without first checking his or her credit report.
Credit reports are incredibly useful, particularly if you're hoping to take out a large loan or mortgage. Credit reports have long been advised by many who work in finance, and it is easy to see why. Credit reports can also be requested with a credit score rating at any time for a fee from the 2 major credit reporting agencies, Equifax and TranUnion. Recently, the third agency, Experian, has stopped providing consumers with access to their reports. Credit reporting agencies must complete these investigations within 30 days or remove them from your credit reports. Because many times these credit reporting agencies are backlogged with disputes, they often do not complete the investigations in time.

Credit reports contain hundreds of pieces of data, updated every month, from banks, credit card companies, auto lenders, mortgage companies, department stores, etc. The things that make it challenging to decipher are the same things that make it a valuable hiring tool. Credit reports are comprised of your credit history. Your credit history includes the type of loans you have received, your payment history, the amount of money that you owe, the amount of time you have had credit, and the number of times that you have applied for loans. Credit report repair involves techniques for removing negative credit records from your credit report. These are the exact same methods credit score repair clinics and attorneys may charge up to $3,500 to perform.

Credit reports have long been advised by many who work in finance, and it is easy to see why. Giving you the complete picture of where you stand in money lender's black books you'll know what kind of offers you can expect when seeking out loans and mortgages.

Credit reporting agencies must complete these investigations within 30 days or remove them from your credit reports. Because many times these credit reporting agencies are backlogged with disputes, they often do not complete the investigations in time. Credit reports contain hundreds of pieces of data, updated every month, from banks, credit card companies, auto lenders, mortgage companies, department stores, etc. The things that make it challenging to decipher are the same things that make it a valuable hiring tool.

Consumer advocates, including the Center for Responsible Lending, say they're simply kickbacks that lenders pay brokers for steering customers into a higher interest rate. The key is how much you're paying: anything more than a quarter of a percent (e.g., 25 basis points) is likely going to be a rate that's higher than you could have gotten shopping around on your own, unless you have damaged credit.

Consumers can access online consumer credit reports, which are instant on the payment of the requisite fees. Consumers are required to input personal information such as their social security number, address, phone number, etc.

Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses with a legitimate need for it. They use the information to evaluate your applications for credit, insurance, employment, or a lease. Consumers have the right to look at their credit report without it affecting their credit or credit score. When you request your credit report it's called a "consumer pull" and has no affect on your credit.

Thank you for taking your time to read this article. Your comments on this article will be highly appreciated. To access hundreds of Gurmit's articles please visit his websites.

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 Lending Centres Mortgage Villa.

Gurmit Singh, mba
Mortgage Expert
M08009905
Dominion Lending Centres Mortgage Villa (11574)

Email: gurmit@gurmitsingh.ca
 Gurmit Singh Toor

http://www.gurmitsingh.ca
http://gurmittoor.blogspot.com

How To Repair Credit Report - Boost Your Credit Score

I've got a problem that I need to share with you, I'm addicted to credit, it's damaged my credit score. The good news for you is I've come full circle now and I now know How To Repair Credit Report.

I want to share my secrets to getting a top credit report. 

Unfortunately most people completely ignore the first tell-tale sign of credit addiction. It's like they don't want to believe that they have a problem. But you know what, I don't blame them. I used to just limp from one repayment to the next, this had to stop. Credit cards were the culprit.

Credit was first designed as a matter of convenience so you could make large purchases, and you did not have to carry a huge amount of cash on you. Now it's a modern day problem that edges into your life bit by bit.

The first sign is that you are carrying a balance, this may only be small but it's like the drinker who only has 2 or 3 drinks a day, or like a recreational drug user who then experiments with harder drugs. This is how all addictions start off, you need to nip it in the bud before your balance increases.

Banks don't help as they let you increase your credit limits, so you get into more debt. 

The potential of a large credit debt makes lenders nervous. They hate to see you applying for a lot of credit. As it makes them think you're going to get in debt and the way over your head with debt. You will have a distinctive pattern that they will see. This is of opening new accounts. Or maybe it's applying for new accounts

The best way for this to be prevented is to get a debt card, you can still use it like a credit card - that is buy purchases over the internet and over the phone but you will not be spending money that you don't have, you will not be spending credit.

Have a lot of debt makes it really hard to get a big loan when you will need it for something really important like buying a house. 

Not having a credit card also means that you are likely to miss payments when you have to pay back your monthly amount.

If you have to have a credit card then make sure you pay back your monthly spend and balance your credit card, set your credit limits low so you are not template to "just whack it on credit". Make sure you pay back your amounts well before the 30 day limit, Some banks will report your late payment even if you are only 25 days late. As their reporting schedule might only be after 25 days.

I really do hope this information gets your mind ticking over and gets you into action. I also hope it provides you with a few tips and some good advice on How To Repair Credit Report when obtaining your credit report.

To get more advice and information on How To Repair Credit Report, or Credit Score and Credit Reports click on http://www.credit-reporter.net

Written By: Justin Fox

Secret to the Best Credit Report - Tips and FAQ's

Best Credit Report - Want to get the best credit report out there, you know you have to get three copies of your report form the 3 different American credit bureaus companies - you get one for free but what about the others? and what fraud protect is best, let me help:

First, what is s credit report and what use it it? Have you ever applied for credit and been turned down, but didn’t understand why? You need to understand your report and how to get the best out of it.

Why have a credit report?

Well, A typical consumer has access to $12,900 worth of funds on all credit cards combined, and there were 9.9 million victims of identity theft in 2002. It is the fastest growing crime in America
With consumer credit is at an all-time high and credit card fraud.

We need a Credit Report to protect us and let us get credit. By obtaining your credit report you can pro actively do things to improve your credit score - used by lenders to asses whether to lend us money or not.
Credit reports provide protection - What you see in that report will let you know if you’re in jeopardy of becoming a victim of credit fraud. There are a lot of scams out there so you need to constantly analyze your credit report to spot fraudulent activity. You check your credit card statement don't you? then for the same reason you need to check your credit report.

To get the best credit report you need to access your report from the three main credit bureaus - you can go direct to these companies, or obtain it through the huge number of companies how offer more competitive rates and other services. The government allows you to get one free report per year.

The reason you need more then one is because all the information on each report is different. Lenders will only pass information onto one bureau. It is not uncommon for your credit score to differ by as much as 100 points - so you need to get the 3 credit reports and then contact each bureau and update your info.
The July 2000 issue of Consumer Reports quoted a study where more than 50% of the credit reports checked contained errors, from this high number you can see the likelihood of your report not only being inconsistent but containing errors too.

My report contains some bad information - how do I go about fixing that info?

There are three primary ways to repair your damaged credit score therefore improving your credit worthiness:

1. Wait 7-10 years for the items to fall off your credit report
2. Repair your credit yourself
3. Use a professional credit restoration firm

First, ask yourself:

• Are there errors on your credit report?
• Could you renegotiate a better interest rate with credit card companies?
• Might you begin working with a financial planner?
• Have you been a victim of Identity fraud?
• You might need to need to refinance your home
• Maybe a relative or spouse’s credit information showing up on your credit report?
• Do you need to improve your insurance premium rates?
• Improve your debt structure?

Be careful of companies guaranteeing to fix your Credit Score

A common trick for them to use is illegal! can could get you into big trouble.
They will contact the Credit bureau and dispute a legitimate section of your report - by law the bureau has to take this info off until the dispute has been resolved.

So from your point of view you've handed over $500 - $1000 and they have seemingly removed that negative information, but once the dispute has been resolved and they have found it is legitimate it will land right back on your repot - by this time, the company has made like the wind - good luck trying to get your money back!

Be sure to do your homework when getting the best credit report - for more information and other tips and tricks go to credit-reporter.net

To get your free credit report today visit www.credit-reporter.net

3 Informative Reasons Why You Need A Credit Report Now

Are you looking for a loan? Or perhaps looking for employment? For fact loans, employment and many other monetary transactions require your credit score. 

If you don’t know your credit score, it’s time you apply for

Today, any financial transaction requires your credit score-- one of the reasons you should request your credit score even if you aren’t purchasing anything; it always helps to be ‘in the know’.

 Let’s share some insider news with you. Certain credit agencies in the US are entrusted with the duty of storing credit information of users which they can sell to other companies that need to evaluate people on the basis of their credit score. You can order a free credit report annually through these companies just to know where you stand.

We’re now going to touch base on the top 3 reasons why Americans are ordering individual credit reports.

You need a loan

You could be hunting for a loan for various reasons. The very first thing you need to do before applying for your loan is to find out if you are eligible for a loan. No matter the purpose of the loan, all of these loan applications would require your credit score.

Here are the top 3 reasons you might want to sign up for a loan

•   To buy a property

•   To buy a car

•   To set up your own business

Let’s assume that you have been waiting to buy a house for a long time. Maybe you already have something in mind and want to buy it before it’s taken off the market. You might have saved up some cash for this purpose as well, but as property prices are shooting up by the day you may end up invariably requiring a loan.

If you have perfect credit scores, you can wrap up the transaction in a jiffy, but if you don’t, it takes you back to square one—requiring you to save up and wait, hoping against the odds that your dream house will still be available. You must also understand that your request for a loan could be rejected if you have low credit scores; don’t push it too long to realize that you aren’t eligible for a mortgage at the last moment.

 Additionally, your credit scores can affect the terms and conditions of the loan. It’s the same principle even if you are looking to be an entrepreneur. You know that you have the potential to succeed in your business, but don’t have the capital required for a start-up.

Let’s face it. Whether you are trying to buy a house, a car or setting up your own business, you need money. Unless you have someone to help you by lending money personally without charging any interest, the next option is to request a loan. As any bank offering a loan requires your credit scores, you’d want to know your score before you apply for the loan.

You want to help someone by co-signing a loan

Sometimes, there are certain situations that need your attention. If you decide to co-sign a loan, the banks or anybody else lending a mortgage are sure to check your credit report.

You might want to co-sign a loan for many reasons.

•   To help your children

•   To help your spouse

•   To enter into a business agreement with your partner

Though it is extremely risky to co-sign a loan--- no matter how close that person is, you need a credit report. Even if you want to help your son or daughter buy his/her own car or want to help your spouse buy a property, it is very dangerous to co-sign a loan. If they fail to pay, then the banks will sue you, as you have given them the authority by signing a contract.

This may affect your credit scores very badly. Plus, you also need to be aware that co-signers are accountable for the terms and conditions mentioned in the contract. For instance as a co-signer, you will be liable to pay off the loans if they are unable to do it.

 However, if they pay their loans on time, it will boost your credit score. Bottom-line, your credit report needs to be perfect, in case you decide to help someone. And you should check in on your credit score every once in a while to make sure the person you’ve co-signed the loan for is actually paying it off.

You need to be aware of identity theft

If you think that your financial information has been compromised, it’s time for you to request a credit report immediately. In such cases, you might notice that someone else has been enquiring for a loan under your name. If that’s the case then chances are that your data has been compromised. As preventive measure, you may need to request your credit scores from different credit bureaus to understand how bad the situation is.

You can apply for your credit score now from

•   Free Credit Pro (Experian)

•   Auto Credit Express (For those with bad credit!)

In cases where your financial information has been stolen or misused, it is possible that your credit scores could vary. If you notice that the scores from one company are way too low compared to the others, you need to start taking action. In addition, these companies don’t share information with each other. Therefore, the best way to handle this situation is to request your reports and contact each of these companies individually to understand why it happened.

Even if you have never been a victim of identity theft, it helps to check your scores to figure out if someone else has been looking at your credits. It is safe that way and moreover, if you discover any fraudulent activity, you can always file a report.

Conclusion:

As you can see, it is critical for you to check your credit scores regularly: it’s better to be safe than sorry. If you have never taken a look at your reports, you should start today. It’s important to have a complete control over your credit history, and making sure any erroneous entries are reported to the credit bureaus as you spot them. Start today and you won't regret.

 Ariyo Akinlosotu is a web based writer on financial issue