Understanding Your Credit Report
A Credit Article Contributed by Annie Bauers
Understanding Your Credit Report
Your credit is very important and you should periodically check you credit report. This will enable you to know where you stand as a consumer and in addition it will give you the opportunity to check for errors on you report.
What to Look for on Your Credit Report
When you review your credit report you should check to make sure that your name, address and social security number are correct. It is important to check this information because if anything is incorrect on your credit report it could result in you being denied for credit.
In addition to checking the accuracy of your personal information on the report you should confirm that all the information regarding any loans, the loan amounts and past due payments are listed correctly on the credit report.
How Do I Read the Report?
The report does look confusing when you are not accustomed to the information you are looking at. You will notice that there are a lot of codes and other information you may not understand. If you look closely at your credit report you will see that there is a key on the report that will explain to you what these letters and numbers mean. After you learn exactly what to look for you will that it becomes routine to read over your report after you have done it a few times.
How Do I Get a Copy of My Credit Report
You can obtain a copy of your report from one of three credit reporting agencies. If you have recently been denied credit or for a periodical check you can ask one of the agencies for a copy. The three credit reporting agencies are TansUnion, Equifaand Experion.
You can obtain your report online through one of these agencies or call their toll free phone telephone number to request a report or do so in writing.
How Much Will It Cost Me to Get a Copy of My Credit Report
You are entitled to receive one free credit report per year. On January 1, 2004 4, due to the new FCRA Act of 2003, all credit bureaus will be required to provide you with one free copy. But keep in mind that they are not required to give out your credit score. Most of the credit reporting agencies will charge on the average of about $12.00 to $13.00 for a copy of the complete report.
Is It Worth the Money to Pay for a Report?
It is worth the few dollars you spend every few months for a copy of your report. The reason is an error on your report that goes unnoticed could cause problems in purchasing and obtaining credit in the future. Errors could prevent you from purchasing a home or other items you want. By looking at your report and knowing your score and where your credit rating stands makes you an educated consumer and enables you to take charge of your finances and work towards your goals.
