Credit reports are a record or inventory of your payment history, accounts, balances and your payment actions toward each. The credit report lists all the accounts and payment history for the last two years, liens and judgments for 7 years and bankruptcy 10 years. It should be confused with a credit score or the three-digit gauge of your credit history. Credit reports should not be discarded as not being important because they are. A credit score uses the information from the credit reports for calculating the credit score.
Studies show that up to 60% of people who check their free credit report find errors.
Periodic checking of your credit report and carefully going over it is critical for your credit history. Credit scores range from about 400-820 and a score of 700 or above is very good. Any inaccuracies and errors found in those should be corrected as soon as possible too. It just needs a little time and patience to do so, reaping you rich dividends in the end when you want to rent an apartment, buy a car or even to apply for a job.
It usually takes a denied loan, insurance or job to open one’s eyes and contemplate about getting a credit report done. There are 3 major credit bureaus which collect information from major creditors. Equifax, TransUnion, Experian. A credit report usually costs about $10.00 each if one needs to order it. But under the 2003 Fair and Accurate Credit Transactions Act, all the people of are entitled to receive a free credit report annually. A person is also eligible for a free credit check if they have been denied credit in the last 60 days.
One should be careful to order it from a centralized agency, as approaching credit-reporting agencies directly can be chargeable. Like credit reports there is also information about your medical and health policies, rental history, auto insurance, check-writing history and employment screeners etc out there. The same law which mandates credit history covers the above information too.
Credit advisors and debt counselors recommend a credit check at least twice yearly.
Most credit bureaus offer a free credit score with the purchase of a credit report. BestCreditCardRatings.com is a website which gives a range of resources to access credit reports and credit scores from.
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