subject: Common Myths and Misconceptions About Your Credit Report [print this page] Common Myths and Misconceptions About Your Credit Report
Common Myths and Misconceptions About Your Credit Report
Your credit report has a big impact on your life. Creditors, lenders, and many other businesses use it to make decisions about you. Since your credit report has such a big influence on your life, it's important to recognize some of the most widely spread misinformation floating around about credit reports.
Credit bureaus don't make mistakes. Just because they're big companies and they have a lot of money doesn't mean they don't make mistakes from time to time. Errors can appear on your credit report and sometimes it's the credit bureaus fault. Fortunately, federal law gives you the right to an accurate credit report and you can have this information removed.
Only a lender or other big business can check your credit report. Some people incorrectly believe that only a mortgage lender or credit card company can check their credit report. While this was true several decades ago, it's not anymore. Now, every person can check his or her credit report for free once a year. If you've already ordered your free credit report, you can purchase your credit report from one of the three credit bureaus.
Paying off bad debts removes them from your credit reports. Paying your old debt is good, but that doesn't automatically take them off your credit report. Negative information can be included on your credit report for up to seven years or ten years for bankruptcies. Other than that, you'll have to live with that bad debt being on your credit report unless you can convince the creditor to remove it.
Checking your credit report hurts your credit. You can check your credit report as many times as you wish without it taking a toll on your credit score. But, you must do it through the proper channels. You have to order your credit report through a credit bureau, FICO, or another authorized third-party. If a lender pulls your credit report, your credit score will be hit.
There's no need to check your credit report. Even if you pay all your credit card bills on time, you still need to check your credit report at least once a year. You should check your credit report to make sure the credit bureaus and other businesses have reported your information accurately. Checking your credit report also lets you catch instances of identity theft faster.
You only have one credit report. The truth is that you have at least three credit reports one for each of the major credit bureaus: Equifax, Experian, and TransUnion. There are other credit reporting agencies who also maintain credit reports, but these aren't widely recognized by lenders and other businesses that check your credit.
You can get a free credit report once a year through FreeCreditReport.com. It's true that you can get one free credit report each year, but not with FreeCreditReport.com, which charges you $1 for your credit report one time. Your yearly free credit report is available every year through AnnualCreditReport.com without a credit card or a subscription. Beware of other sites that promise a free credit report, AnnualCreditReport.com is the only free one which has been mandated by federal law.
