Staying in the know about your finances can be quite a task. Fortunately, you have access to your own personal credit report free of charge. Read on to learn the basics about credit reports.
What is a Credit Bureau?
A credit bureau is a company that gathers and provides information about the credit history of individuals and businesses.
Credit bureaus are responsible for collecting, storing, and distributing consumer credit data. They also provide reports to creditors, insurers, employers, and others with a legitimate need for such information.
Credit bureaus collect information on the payment behavior of consumers by gathering data from public records (e.g., court filings) as well as private sources (e.g., banks).
What is a Credit Report?
A credit report is a document that summarizes a person's credit history. It contains information about the person's repayment history, public records (bankruptcy filings), inquiries (made by lenders when reviewing an applicant’s loan), and credit limits.
Your credit report includes:
· Your address and where you’ve previously lived
· The creditors you currently owe: loans, charge cards, and more
· Past credit accounts
· How many times and with whom you applied for a loan
· Whether you pay your bills on time
· If you’ve filed for bankruptcy or had tax liens in the last 10 years
· Other facts about your financial and credit life
How Can You Obtain a Copy of Your Credit Report?
Obtaining your credit report is easy if you know where to start. It is important to know that there are three major credit reporting agencies in the United States:
1. Equifax. The address is, P.O. Box 740241, Atlanta, GA 30374-0241. Their phone number is: (888) 766-0008.
2. Experian. The address is, P.O. Box 2002, Allen, TX 75013. The phone number is: (888) 397 3742.
3. Trans Union. The address is, P.O. Box 2000, Chester, PA 19022. The phone number is: (800) 916-8800.
All three of these companies are required by law to provide a free copy of your credit report once every 12 months, if you request it. You can go online or simply call the 800 numbers and request a copy of your report. There are also other ways to obtain a copy of your credit report without cost. For example, you can request a copy from all three bureaus at AnnualCreditReport.com.
It’s not unusual to receive different information from each credit bureau. Banking institutions sometimes utilize just one of the credit bureaus. Therefore, any information they have about your loan habits might only be sent to one credit bureau.
Why Should You Obtain a Copy of Your Credit Report?
If you want to stay informed about how you’re doing financially in terms of managing loans, payments, and the like, you’ll want to get a copy of your report at least yearly. Many companies, including employers, cell phone providers, and insurance companies, are now checking your credit report before doing business with you.
The information in your credit report also determines if the creditor will approve your application and what interest rate they will charge on your loan. The better your credit history, the better loan terms you can receive. A good credit score, or lack thereof, can have a significant impact on offers you receive from lenders.
In the event that your personal identification, credit card, or checking account has been compromised, it’s important to follow your credit report closely.
In addition, it’s important to check your credit reports for mistakes. Those errors could cost you money or even a chance at a lucrative new job. You can have mistakes eliminated or corrected.
Summary
In order to keep up with your finances, it is crucial to know about credit reports. It's important to know what credit bureaus do, what a credit report is, when and why you should get one, and how to obtain it. This knowledge will help to have a successful financial life.
The more you understand about credit reports, the more competent family leader and better money manager you'll be!
