It is a wise decision to get a credit report from a credit reporting agency. Once you have your report, you must know how to read it. This will help you in understanding the information sent and judging your financial position from a lender's point of view.
It should be remembered that there are three main credit reporting agencies in the USA namely Equifax, Experian, and TransUnion. It is a requirement of the Federal Trade Commission that all three of these companies give a credit report to their clients free of cost once ever year, if asked for it. Remember that this report is sent to the lenders and credit card companies to check your record if you ask for a loan or credit card so knowing your credit score beforehand would be beneficial for you. It has been seen that credit reports contain fraud, identity theft and wrong information which makes the person ineligible for getting a loan, credit card etc.
It is quite easy to understand a free credit report. Here's how! The report consists of five basic points.
1. The particulars of the person such as name, social security number, phone number, etc.
2. Public Records Information, i.e. if you have any previous evidence of bankruptcy, civil judgments etc
3. The information about collection agency, which basically includes any debts that you were unable to pay.
4. Information about your credit cards, open accounts, utilty accounts, loans, leases etc.
5. The names of companies who have asked for your credit reports in the past.
Ensure that you have gone through all these points. Also, keep a check that your information is updated. Immediately report any wrong information to your credit agency because it takes a few weeks for your request is processed.
Tuesday, December 15, 2009