3 Credit Reports for Free

3 Credit Reports for Free

3 Credit Reports for Free 

A person’s history of credit is extremely important especially if the individual would like to apply for a mortgage loan, bank loan, employment, etc. An individual’s credit history is not only important to him or her, but a lot of other companies and people are interested in it as well, such as: banks, utility companies, mortgage lenders, possible employers, etc. It’s vital to understand one’s credit score, credit report and the agencies that gather the credit data – credit bureaus.

Each consumer or individual has the right to request a 3 credit reports for free, under the Fair Credit Reporting Act bill that was passed in 2003. The bill mandates that reporting companies like TransUnion, Equifax and Experian provide a consumer with a free credit report at the consumer’s request. The consumer can request their 3 credit reports for free every 12 months.

A person’s credit reports contains a person’s information on where he lives, how he pays his bills, whether or not he has been arrested or sued, or if he has ever filed for bankruptcy. The companies who report consumer credit sell this data to insurers, creditors, employers, potential employers and other establishments in order to evaluate the individual’s credit when applying for employment, renting a home, applying for credit and/or insurance.

Information on Credit Reports

In addition to the information given above, an individual’s name and Social Security number will be included in the report. The consumer’s current credit status, such as mortgages, credit card accounts, student loans, car loans, etc. may be of great importance for other reasons. In addition, it may also have how much the consumer owes his creditors, the terms of the credit and the payment history. There will also be the information about the consumer’s public record as to whether there are any court judgments against him, whether he has filed for bankruptcy or if there are any liens against his property.

The fact that consumers can receive 3 credit reports for free is important in that the consumer should be aware of what is on his or her report. To have the free report is helpful information to the consumer because lenders could use his credit information to determine if he can get a loan and what the terms of the load would be. Insurance companies will want to see the credit reports because they use that information to help them determine whether the consumer can obtain insurance and at what rate.

Even the utility and telephone companies may want to use the consumer’s credit report for decision making on the services they may provide.

3 Credit Scores

Getting all Three Credit Scores

3 Credit Scores 

Credit scores are a statistical expression built on a numerical analysis of an individual’s credit records to signify the creditworthiness of that individual. Credit scores are mainly built on credit report data usually from credit bureaus.

Lenders like credit card companies and banks use the credit scores to gauge a possible risk to lending to a consumer who may have bad credit or problems paying his debt. Lenders will use the consumer’s credit scores to determine if the consumer is qualified for a loan in addition to attaching what rate of interest and the credit limit for the requester of credit.

The scores of credit bureaus are frequently titled “FICO scores” due to the fact that the majority of scores from credit bureaus that are utilized in the US are from a particular software created by Fair Isaac and Company. The FICO scores are given to lenders by the main credit reporting companies.

Consumers have 3 credit scores, or FICO scores – one score from each of the three main credit companies: Equifax, Experian, and TransUnion. The 3 credit scores are based on data that the credit bureau has on their record about the consumer. If a consumer’s FICO score is calculated to a low number, there are steps that he or she can take to improve his or her FICO score which will help the consumer be qualified for better charges.

Additional Credit Scores

There is more than one score in the world of credit scores. When people speak about an individual’s credit score they are speaking about his or her present FICO score. The fact is that there is not just one credit score that is used to make lending decisions because:

  • FICO scores aren’t the only scores from credit bureaus

Even though the FICO scores are used the most, there are scores from other credit bureaus. These scores may appraise an individual’s credit report another way than FICO scores, but the individual could run a higher risk of different scores

  • The scores of credit bureaus aren’t the only scores that are used.

Quite a few lenders have their own scores of crediting that often includes FICO scores in addition to other personal data

  • FICO score could change in time

As an individual’s information changes, so do the credit scores, which cause his or her FICO score to change.

  • Credit scores may differ from the main agencies

There is a chance that an individual’s present scores differ from the other agencies because they have different information on the individual.

All 3 Credit Reports Free

All 3 Credit Reports Free

All 3 Credit Reports Free 

Every person has the right to have all 3 credit reports free one time each year. Because of the Fair Credit Reporting Act the consumer reporting corporations nationwide are required to provide each consumer with a copy of his/her credit report for free. However, the consumer must request the credit reports only once a year. The FCRA endorses the privacy and accuracy of data in the credit records of the national companies that report consumer credit ratings. The Federal Trade Commission is the nation’s protection agency for consumers and puts in force the Fair Credit Reporting Act as far as consumer reporting agencies are concerned.

A credit report contains data on how individuals pay their bills, where they live and whether or not the individual has ever been arrested or sued or have applied for bankruptcy. The credit reporting agencies sell the data in an individual’s report to insurers, employers, creditors and additional businesses that employ it to assess the person’s applications for insurance, renting of a home, employment or credit. It is necessary to discuss the particulars of an individual’s FCRA rights, which founded the free credit report plan

Getting your free report

The three national reporting companies of consumers have established a telephone number that is toll-free, a main website and an address for interested consumers who would rather mail in their request for their free credit report.

Consumers have the opportunity to either request their credit reports from the three individual credit-reporting companies all at once or individually. This law permits consumers to request a free credit report from the three credit companies once a year.

Individuals who request a free report must supply their address, name, date of birth and Social Security number. If an individual has moved within the previous two years, he/she might be asked to give his/her former address. To continue the safety of one’s file, the three national credit-reporting agencies might ask for additional information that only the individual requesting the report would know. Each agency may or may not require other information due to the fact that the data that each company has the probability of coming from different bases.

Depending on how an individual request his or her free credit report determines how long it may take to receive it. Requesting a report online gives instant access. If requested by phone, it may take up to 15 days. It will also take around 15 days to receive the requested free credit report if the individual mails in the request.

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