Why You Need a Free Credit Report and How to Get One


Credit is one of the most powerful tools you have in life. With a good credit score, you can have all the best things. You can easily be approved for a home loan (as long as you have the income to back it up, of course). You can enjoy the use of credit cards. You can easily apply for and be approved for an auto loan. Credit is wonderful, powerful and beneficial. Safeguarding your credit is essential. One of the best ways to guard your credit from blemishes is to use your free credit report to ensure everything remains on the up and up.

What is a free credit report? According to federal law, you are entitled to one free copy of your credit report every year. You actually get three, one from each of the major credit bureaus, Equifax, Experian and TransUnion. These companies act as storage areas for consumer information. Almost every detail of your financial history can be found on your credit report. However, it is important to note that you should always obtain your free credit report from each of the Big Three ? each report will be slightly different and this will ensure that you have the most comprehensive picture of your credit status.

Where do you get your free credit report? Your first stop should be at AnnualCreditReport.com, where you will be able to choose which credit reports you want and how you would like to receive it. You will also find a toll free number that you can call to order your credit report if you prefer to do it that way. Once you have your credit report, you'll need to do a few other things to ensure that you have the purchasing power you need to enjoy all there is in life. What do you need to do first?

Once you have obtained a copy of your free credit report, you'll need to actually look at it. This might be confusing, but the website mentioned above will give you some pointers on how to read it. In addition, each of the three major credit bureaus gives you a detailed explanation of how to make sense of their individual reports. Now that you know how to read the reports, it's time to start looking for things. What are you searching for?

Obviously, the first thing you want to do is ensure that each item on your credit report is attributable to you. If you find things on your report that you know you did not incur, then it can be a sign of identity theft. It can also be a simple mistake on the part of the credit bureau whose report you are perusing. Regardless, the next step if you have found erroneous items is to contact the credit bureau in question and ask them to remove the faulty items. This should be done in writing, and submitted with a copy of your credit report (never send in your original ? use a photocopy). You should also send in any supporting documents, such as a paid statement or proof that the item is not of your making.

Now that you have begun to eliminate erroneous information from your free credit report, there is much more you can do. First, you can find out what lenders see when they run your credit. Unpaid and paid debts are obviously reflected. However, other items will also be found on your credit report that might surprise you. You will find marriage and divorce information on it, as well as taxation and legal judgment information in some cases. Each item listed on your credit report tells a lender something more about you as a consumer. Therefore, it is in your best interest to keep your credit report as clean as possible to ensure that you enjoy the utmost in buying power throughout your life.

How often should you get a copy of your free credit report? Under US federal law, you are entitled to one free copy each year. However, some states allow you an additional copy. Of course, you are also free to purchase as many copies as you like. If you anticipate needing several copies of your credit report, the best option is to sign up with a company that offers you unlimited access to your credit report for a fee. This will help you save money, while simultaneously keeping an eye on your credit.

Your free credit report is a powerful weapon in your battle to maintain your financial strength and stability. It is essential that you check your report at least once each year in order to make sure that no false information or identity theft has occurred and that your report reflects your spending and buying habits accurately for any potential lender.