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Credit Reports & Credit Scores Living a Better Life Credit Scores and Credit Reports It's a good idea to check your Credit Report for accuracy every year, but especially before seeking a new loan. Reporting errors are very common and can be quite embarrassing if not corrected beforehand. Just one small error on your report can bring your Credit Score down, and that's the information your loan company will be using to decide your interest rate. * * * What is a Credit Score? Your Credit Score (also known as a Beacon
Score,
Emperica Score, or Fico Score What Affects My Credit Score? Here are some things that will affect your Credit Score... Positive
Negative
* When a consumer asks for his/her own Credit Report, it does not hurt the Credit Score. Why Does My Credit Score Matter? Obviously, the better your Credit Score the better credit (and interest rates) you will receive when seeking a new loan. But that's not all. It's important to keep your credit in good shape and make sure there are no errors on your report, even if you don't need a new loan right now. You see, banks and credit companies are not the only ones looking at your Credit Score. In addition to all lending institutions, your Credit Score may be taken into consideration by current and future employers, insurance companies and even rental landlords. What are the Numbers? Credit Scores have a wide range, 300 to 850, but the following levels are the most common. In order to get the best interest rate on a new loan you'll need to be in the top 2 levels, and preferably the top... 850-720 Visit MyFico
How Do I Get a Copy of My Credit Report? It may cost you $10-12 to get a copy of your credit report, but If you have been turned down for credit or have received any negative feedback concerning your credit in the last 60 days, you can obtain a FREE copy of your credit report by contacting the three main credit bureaus listed below. (see additional information below for free annual credit reports) Equifax is considered the main credit bureau and most widely used by loan companies, but it's also a good idea to get your report from all three companies because they may include different information - as they do not report to each other. Also, if you're married, each spouse should order a copy of their own report - if there is a mistake on one spouse's report it is likely to be on both. After you contact the credit bureaus and order your credit report, you will receive a copy of your report within 2 weeks. How Do I Correct Errors on My Credit Report? After receiving your credit report, sit down with some good lighting and review it thoroughly. It can be a bit tedious to check your report thoroughly, especially since they include information going back 7-10 years, but it's well worth your time. If you find any errors on your credit report that need to be corrected (or old accounts you would like to be removed - which they may or may not do), simply fill out the information on the correction pages included and mail them back. You will also have the opportunity to update your employment information. In a few weeks you should receive an updated copy of your credit report, along with an explanation of any changes they made. And rest assured, if there is a true error on your credit report, they will remove it promptly! If for any reason they do not correct the error, send them a second more detailed letter explaining in full why it should be removed - that should get it done! Here are the main 3 Credit Bureaus to contact... Equifax (Many people
consider this the most popular credit bureau.) Experian TransUnion Free Annual Credit Reports (Please note: The Annual Credit Report company is sponsored by Equifax, Experian and TransUnion. If you have already ordered a credit report in the last 12 months and would like to order a new one, you can contact the credit bureaus directly.) Please keep in mind, Credit Bureaus are simply recording agencies who are paid by those seeking your credit report. Federal laws have been put in place to protect you, the consumer, and they are very much in your favor. In other words, they do not have legal powers over you and are usually very easy to work with. It's just a matter of taking the time to make sure your information is being recorded correctly, and not doing so can be very costly. And one last thing, please use caution when seeking your Credit Reports online with new companies! You can contact the Credit Bureaus as listed above and order your reports directly from them each year. We will keep this page up to date with their contact information and provide the link on the left hand column of our site. * * *
Copyright © 2004, 2005, 2006 by Michelle Jones. All rights reserved. Want more money-saving resources and tips? Get a FREE Subscription to our monthly newsletter!
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