Posts Tagged ‘free credit report’
Posted by: admin in on March 25th, 2009
What exactly is a credit score? What type of formula decides my score?
A credit score isthe most common method that represents the level of risk that a specific individual may be for securing any type of loan, shown in numbers that are between 349 and 849. The higher the number that’s shown in an individualâ€™s credit score gives creditors the assurance that they need to know that a person will be more likely in a position to repay a loan, and less likely to be one of many that default. These numbers are figured by a special math formula that is used to measure a variety of different types of helpful information that are obtained by public records, information from your previous payment history, as well as the ratio of debt to income.
Why is it so important to check my free credit report? Why do I need to know my score?
In todayâ€™s society it is a known fact that there are constant increasing problems that concern issues with fraud. This is a very good reason that makes it vital to consistently check the status of your credit report. The sooner you are able to detect a fraudulent matter, the faster and easier it will be to clear and remove any acts of fraud that may have been committed on your credit report. Problems that are simply left unnoticed can end up costing you a tremendous amount of valuable time and a large amount of hard-earned money in the long run. When an individual has the ability to obtain important information that is contained in your credit report, it then makes it very easy for them to steal your identity and open fraudulent credit cards, banking accounts, utility services, and even loans.
There are several situations you will want to check your credit score:
- When you apply for a job
- When you try to purchase an automobile
- When you would like to obtain a credit card
- When you would like to secure any type of loan
It can be extremely important to maintain a credit score that is above 650. Otherwise your financial well being for the future can be greatly affected. Now is a great time to make improvements, so be sure to obtain a free copy of your 3-bureau credit reports, along with a free copy of your credit score. These can be easily obtained online and then you can begin the important process of making an improvement to the worthiness of your credit.
Don’t waste any more time! The Internet is a valuable source that makes it very easy to obtain your personal Credit Report, along with all 3 Credit Scores!
Did you know that less than 1% of the United States population has “perfect credit?” The credit scale ranges from 300 to 850, and believe it or not, you too can reach that magical 850. All it takes is the mastery of a few key traits, and you’ll be a part of that 1% in no time:
- Keep the amount owed on all credit accounts less than 30% of your limit.
- Make sure you never have major discrepancies e.g. bankruptcy or foreclosure.
- Keep most of your accounts open for a long time, at least 10 years because you need at least 10 years of positive history to get anywhere close to 800 on your FICO score.
- A few “installments” in good standing e.g. auto loans or mortgage.
- Minimal late payments, overdraw charges, or any other account issues.
In addition to mastering these details, you really need to be checking your credit report at least once a year. This can help ensure that all your information is accurate and up to date. A quick tip, is that from each of the three major credit bureaus, Experian, Equifax, and TransUnion offer you one free peak at your report once a year.
If you’ve been hearing about free credit report and free credit score offers, you’re probably wondering what the big deal is. Unless you don’t have a problem with paying high interest rates and fees to lenders, you should consider getting some background information about your credit. Consider this, the range of your credit score can affect how much you will pay for your monthly mortgage payment, for example:
If you have a good credit score:
Mortgage Loan Amount: $250,000
Interest Rate: 6.75%
30 Yr Fixed Rate Payment: $1,621
Total After Finance Charges: $333,734
Prior to meeting with a lender to request a loan, sign up for a new cell phone service, purchase a car/home, or interview for a job, you should definitely check your credit history. The information on your credit report may influence whether or not you get the loan, cell phone, car/home, or job.
- What Information Shows Up On Your Credit Report?
Your credit report contains information regarding your financial behavior and past/present credit balances. It provides information like when a credit account was opened, the limit or loan amount, monthly payment amounts, and current balance. It will also show whether or not youâ€™ve made payments on time. The report also contains information about bankruptcy, child support, and taxes. This type of information can remain on your credit report for seven years or more.
- What to Do if You Find Errors
If you find that your credit report is inaccurate, investigate immediately. The problem could be a simple error or something very serious like identity theft. The faster you correct the issue, the better. To correct credit errors, first notify the agency you have a dispute with and present them with the information you have to support your finding. Then you wait to see what happens and do what they tell you to do.
In case you didnâ€™t know, the only way to be 100% sure that your credit score is healthy and accurate, is to check your credit report. Your credit report is considered your identity to potential lenders, employers, and anyone looking to invest in you. Here are some great tips to fine tune your credit and boost your likeliness to get a loan.
1) Correct Errors
Once you take the plunge to check your credit report, you may be surprised to find that there are quite a few errors. Relax; this is common for people who donâ€™t stay on top of their financial history. Anyway, correcting the errors will take some time contacting various bureaus and companies, but the time is well spent. With a clean slate, you can start over rebuilding and maintaining your credit.