A complete
understanding of your credit report is the most important financial tool you will
ever own!
Reasons To Get Your Credit
Reports
1. Never Seen It or Haven't Seen Your
Credit Report in Years?
If
you have never seen a copy your credit report, you definitely should order a 3-in-1
credit report, which includes your credit report from Experian, Equifax, and TransUnion.
Why a 3-in-1 credit report? The three national credit bureaus do not communicate
with each other, so you actually have three credit histories. It is up to you
to make sure that your credit histories are accurate, so you should get all three
of your credit reports.
2. Mistakes DO Happen
Do
you know who has had access to your credit report information? Do you know if
the information they saw is accurate? According to a study by U.S. PIRG, 70 percent
of the credit reports have errors of some kind and 29 percent contained serious
errors like false delinquencies and judgements that don't belong to the consumer.
3. You are applying for a credit card
If
you are considering applying for a car loan, bank loan, or credit card, you will
want to see your credit report and make sure all information is accurate. Since
each inquiry can count against your credit rating, make sure that your application
isn't rejected based on mistakes in the credit report.
4. Co-Signed a Loan
If
you have co-signed a loan for a family member or friend, their payment record
will also appear on your credit report. Make sure you know how your credit is
affected.
5. Mortgage-shopping
Before
you start shopping for mortgage, take a look at your credit report before the
mortgage companies do.
6. Renting
If
you are going to be renting an apartment, especially in a competitive market,
it is wise to have a recent copy of your credit report with you while apartment
hunting. Most apartment owners or managers will want to check your credit report
before offering you a lease.
7. Divorce
Your
credit may be combined with your spouse, and there may be certain transactions
that you may not be aware of. If you get a divorce, notify the three major credit-reporting
agencies that your status has changed to "single." Provide them with
new addresses for both you and your ex-spouse. Specify that all accounts should
henceforth be reported separately. Otherwise, transactions may be reported on
the wrong spouse's account. The records could get tangled confused, especially
if one of you were to remarry. Occasionally, one or both spouses may experience
credit problems during the separation period preceding the final divorce, especially
if marital assets are frozen during settlement negotiations. You will need a copy
of your credit report to review with your attorney so that you can accurately
evaluate how your divorce will affect you financially.
8. Fraud Monitoring
Someone
may be committing fraud by using your identity and applying for credit in your
name. Credit reporting companies do not have to inform you of suspect items, so
it's up to you to be vigilant about your credit. You should regularly check your
credit report to make sure that all new inquiries and accounts are not fraudulent.
Make sure all information is accurate and if you suspect fraud, contact your credit
reporting agency and ask that they put a fraud alert on your file.
9. Self-Employed?
If
you have your own business, it is imperative that you regularly monitor your credit
condition. The stronger your credit, the greater your ability to secure the financing
you need to properly build and maintain your company.
10. Financial Planning
If
you use a financial advisor, it is recommended that you check your credit report
at least once a year and review it with him/her so your financial condition can
be accurately assessed.
What is in a credit report?
The following types of information
are found in your credit report:
1. Identifying information: includes your name, nicknames, current and previous addresses,
Social Security number, date of birth, and current and previous employers. This
information comes from any credit application you have completed, and its accuracy
depends on your filling out forms clearly, completely and consistently each time
you apply for credit.
2. Credit information: includes specific information about each account including
the date opened, credit limit or loan amount, balance, monthly payment and payment
pattern during the past several years. The report also states whether anyone else
besides you (i.e. a spouse or cosigner) is responsible for paying the account.
This information comes from companies that do business with you.
3. Public record information: includes federal district bankruptcy records; state and
county court records, tax liens and monetary judgments; and, in some states, overdue
child support payments. This information comes from public records.
4. Inquiries: includes the names of those who have obtained a copy
of your credit report for any reason. This information comes from the credit reporting
agency, and it remains available for as long as two years, as per federal law.
Don't
like surprises? Find out what lenders see when they access your report BEFORE
you apply for a loan. Click here for your comprehensive credit report.
While there are a number of
good reasons to order, review and master the details of your credit report, one
primary truth cannot be avoided:
Your credit report is your electronic
fingerprint.
You can't escape it. It will always
precede you. It represents your reputation in the personal financial community.
If it is solid, it can be one of your best assets. If it is damaged, it can be
one of your biggest liabilities.
The sad truth is that the majority
of Americans have never seen their credit reports, though their credit profile
affects practically every aspect of their financial lives. Even more disturbing
is that of those who have seen their credit reports, a significant number don’t
understand what they are reading.
Credit is not something to be feared,
but rather a tool to build financial security. It is simply a different kind of
investment portfolio.
As more and more Americans put
their funds into the stock and bond markets, it is not uncommon to see people
hunched over the morning newspaper, watching one of the financial news networks,
surfing the net checking out their portfolios or doing research, or pouring over
their monthly investment statements. Unfortunately, few, if any, people realize
that were they to dedicate just a fraction of the time they spend reviewing their
investments to working on the development of a credit portfolio, they would dramatically
enhance their ability to build the type of financial security they are striving
for.
Think of your credit report as
the equivalent of an investment statement. But just as you can’t know your entire
financial picture without reviewing statements from all of your investment accounts,
you will not see your entire credit picture unless you read a report from each
of three (3) major credit reporting agencies (Experian, Trans Union and Equifax).
Because just as Merrill Lynch doesn’t share your account information with Etrade
or Schwab, none of the three (3) national reporting agencies share information
with each other. Therefore, simply seeing one, or two, credit reports may not
give you the entire picture.
There is, however, a way to see
your entire credit profile as reported by all three (3) bureaus one (1) report.
It is known as a 3-bureau, or triple-merged, credit report. And, since it reports
each credit account you have and indicates which credit bureaus report which accounts,
you can finally see who knows what about you.
Don't
like surprises? Find out what lenders see when they access your report BEFORE
you apply for a loan. Click here for your comprehensive credit report.
FREE CREDIT REPORTS:
"You can receive a free personal
(not business) credit report by simply requesting it in writing with the form
below. Be sure to attach the information as requested.
Personal Request Forms
Experian (formerly TRW)
P.O. Box 949
Allen, TX 75013
(800) 682-7654
Experian:
I am requesting a free credit report. Please find enclosed pertinent information,
and if there are any questions, please contact me at:
Address:
__________________________________________________
__________________________________________________ __________________________________________________
Residence (past 5 years)
Phone: ___________________________
Please find enclosed items:
SS #
Year of birth
Verification
/ copy driver license
Certification / copy of major billing statement.
Signature at bottom of request. Thank you....
Name: _______________________________________
Signature: _____________________ Date:________
There are 3-4 main sources for
this information, including Equifax, Experian and Trans Union and TRW. Here are
a few phone numbers as well.
TRW 1-800-422-4879
TRANSUNION
1-601-933-1200
CSC CREDIT 1-800-759-5979
Here are the
latest addresses available for the three main credit services.
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
(800) 685-1111
Experian (formerly TRW)
P.O. Box 2104
Allen, TX 75013-2104
(800)
682-7654
Trans Union
Customer Disclosure Center
P.O. Box 390
Springfield, PA 19064-0390
(800) 916-8800
