subject: Credit Reports - Keeping The Facts Straight [print this page] Not many know about or are even familiar with credit reports. Some are reluctant to ask as well. Here are some facts about the credit report, how to avail of it, and the benefits gained.
The What and How
A credit report is simply a person's detailed financial history. This record is provided by the three main nationwide credit bureaus namely, Equifax, Experian and TransUnion. Finance bureaus are also referred to as Consumer reporting Agencies.
The report or finance statement is a very important tool especially because it determines whether to purchase something on credit based on the data in the report. The latter also constitutes the grounds on whether you are considered reliable on issues involving credit. Therefore it is very important that you have a good standing or rating. credit reports are generally very accurate and can display financial data as old as seven years. Missed payments, for instance, are supplied to creditors for further reference on various applications. These stains on your report, however, can be fixed as missed payments are usually deleted after seven years; bankruptcy issues are removed after ten years.
There are a few ways to obtain a cheap report or statement. The good thing about each and every one of these ways is they are effortless in their own aspect. For example, you can easily request for a financial report online or by traditional mail. Moreover, under the Fair and Accurate Credit Transactions Act (commonly referred to as FACT Act), Americans are entitled to a free annual credit report from the three credit bureaus. The free report can be requested online, through mail, or over the phone. In addition, you can easily request the lender for your finance report whenever an application (like a loan) is denied.
Keeping Tabs on Your Credit Report
It is also essential to frequently keep track of your credit report. Credit-related crimes are among the most common in the rising rate of identity theft occurrences. When one's identity is stolen by means of illegally gaining access to physical documents (such as credit cards, as in this case), not only does his credit report grow longer, but the latter is also bound to shell out on expenses he has never even made.
Checking on your report allows you to maintain and control finances. By doing so, one is aware if he is qualified for a loan or purchase on credit.
By regularly verifying a credit report one is not only alert on his financial standing, but is also able to gain, if not maintain, a high credit rating. A good credit score entails a greater chance of availing loans and acquisitions.
