A Free Credit Report Will Help Keep an Eye on Your Loan Potential


Obtaining a free credit report can be easier than you think. Many different sites tell you that you can get a free report. It?s important to be very careful to make sure you are not signing up for something that you do not want. Some of these sites offer credit monitoring and other items that cost a monthly fee. If you have to put your credit card information in to receive the report, you are probably buying something else in addition to your report.

A free credit report can be obtained by logging into FreeCreditReport.com. The site walks you through the steps needed to get the information on your credit report file. The site gives you a credit file report from TransUnion, Equifax or Experian. You can also get all three if you want to. It?s best to get all three reports because there can be some differences on the file. The site will then ask you to prove who you are by asking some information that only you will know.

Once the right information is received, it will open each file. You can view them online or save them to your computer. Do not save them if you are not using your computer. Each credit reporting agency will give you the necessary steps needed to dispute items if your report shows incorrect items. Make sure that you review your file carefully. A free credit report will give you an opportunity to make sure the report accurately reflects how you have paid your bills. If it does not, then it?s time to start the process to get your report updated.

There are many things that are reported on your credit file. It should show how you pay for your car loan, credit card loans, personal loans, utilities, and any other loan you have. It will also show if you have been sued for defaulting on a loan. If you have filed for bankruptcy, that will show on your credit file as well. Your current addresses as well as previously reported addresses are listed there along with your employer. This information is obtained when you fill out a credit application so it will be as accurate as the last applications.

When you apply for a loan, that information is captured as well. It shows in the credit inquiries section. Each time a loan company pulls your credit file, their name and the date it was filed will show there. The amounts of credit inquiries can also keep you from obtain credit. A potential loan company can see many credit inquiries as trying to obtain too many loans and therefore overextended. Obtain a free credit report to look at the number of credit inquiries you have. Inquiries can be inaccurate also. Keep in mind that if you have applied for a car loan recently, they tend to put your file through several loan companies in an attempt to get you approved. This process doesn?t tend to show favorably on your credit file.

A free credit report can be obtained once a year. If you dispute an item on your credit file, the credit reporting agency will send an updated file once the investigation is completed. If you have signed up for a free report and another service like credit monitoring, then you may be able to get your credit file more often. More than one credit file may be included in the monthly fee that you pay. If you decide on a free report, you may set a reminder on your computer so you can get your report when the year anniversary is reached.

Free credit reports can also be obtained if you have been turned down for credit. Typically you can get a copy of your credit file for free when a potential lender has declined your application. This also helps you because your credit file may be showing something that is incorrect. You can have your credit file reviewed and updated.

Once that process is complete you can then contact that potential lender again showing them that the problem has been resolved positively. Many times people give up after this point because they are upset that they have been turned down. Remember that a decline is not necessarily forever. They may be willing to review the new information after you have had it updated. You may even wait a few months and then reapply. The timeframe that you contact the potential lender is left up to you.

A free credit report is an excellent way to keep an eye on your credit file. Even though you have access yearly, reviewing it once a year is better than not reviewing it at all. It is taking a proactive approach to your own credit. Reviewing your credit can also protect you from identity theft. If you review your credit file and see an incorrect address or an account that you didn?t know about, you may be an identity theft victim. If you find this information, contact the credit reporting agency right away. It?s best to get started on it right away to keep credit thieves from wrecking your credit file.