Best Free Credit Report

If there is information on your credit report that is not accurate you may file a credit report dispute. This article has information on steps to take when disputing your credit report and identity fraud.  Also information on Equifax, Experian, and TransUnion.

Because your credit report is so important when it comes to your financial health and the decisions that affect your interest, insurance and other aspects of your personal finances, it is vital that it contains accurate information. Indeed, in many cases a credit report error can actually lower your credit score, and prevent you from getting the best possible deal on some loans. You should regularly check your credit report, and when you find an error, you should dispute.

Disputing your credit report

You have the right to dispute information on your credit report that is inaccurate. If there is an error, the credit bureaus are required to correct the problem or remove the information from your report. If the dispute is not settled to your satisfaction, you have the right to add a personal statement to your credit report, explaining your side of the dispute. There are some steps you should follow in order to have inaccurate information removed:

1. Notify the credit bureau. The first thing you should do is notify the credit bureau with the error in writing. You should include the following items in your letter to the credit bureau (or credit bureaus, if the error appears in more than one place): Name, address, the specifics of the dispute, why you are disputing the information and request for the error to be fixed. You should also have a copy of your credit report with the letter, highlighting or circling the items in. If there are documents supporting your claim, include copies (never originals). Send this packet certified mail with a return receipt so that you get proof that the credit bureau received your request.
2. Notify the creditor. The information in your credit file might have been provided by a creditor. In such cases, you should notify your creditor of the dispute, in writing. Make sure that your letter follows the same form as that in step 1, to the credit bureau.
3. Check your credit report. You should verify that your credit report has been corrected. Normally this takes 30 to 60 days. If the creditor proves that the information is correct, it can stay on the report. However, if you are unhappy with the result, you can add a personal statement to your report.

You should understand that you won’t have accurate negative items removed from your credit report. If you have a late payment showing, and it really was late, no amount of disputing is going to change that. Credit bureaus only have to change your report if an error is found. And it is worth checking to make sure your credit report doesn’t have errors, since they are more common than you might think.

In order to find out specifically what you may need to properly dispute your credit report, you can contact the credit bureaus, or visit their Web sites. Here is the information that can help you contact your credit bureaus:

• Equifax: 1-800-685-1111 or www.equifax.com
• Experian: 1-888-397-3742 or www.experian.com
• TransUnion: 1-800-916-8800 or www.transunion.com

You are entitled to one free credit report each year from each of the credit bureaus, and you should make full use of that to check for errors. Most experts also recommend that you check your credit report at least once or twice a year in addition to your free report. This will allow you to catch mistakes faster.

Identity fraud

If you have been a victim of identity fraud, and fraudulent accounts are showing up on your credit report, you follow a pattern similar to that of credit report disputes. However, you should first call the credit bureaus on the phone and request a fraud alert for your account. Then you should call local law enforcement and file a police report. Copies (not originals) of the police report should be use to help back up your claims of identity fraud with the credit bureaus.

When you have been a victim of identity fraud, you are entitled to two free credit reports a year from the credit bureaus. And you should use them to keep track of your accounts, since once you have been a victim, there is a reasonably good chance that you will be targeted again.

If something is not right on your credit report, you should do what is necessary to have the mistake corrected. It can mean the difference between approval and credit denial, as well as cost you hundreds – or even thousands – of dollars in interest charges.

How to Improve Your Credit Score: this articles explains how to fix a credit report problem and build credit. Report problems on your credit report to agencies, building credit with on-time payments, and keeping out of debt are all ways to improve a credit score.

When it comes to your personal finances, one of the most important things you can pay attention to is your credit score. A credit score is like a snapshot of what your personal finances look like at any one point in time. Your credit score is what shows lenders – from your mortgage lender to a car dealer to a credit card company – whether you are able to pay back a loan. It shows whether you are credit worthy, which is another way of saying that you can be trusted to meet a loan obligation that you enter into.

Reasons you want a better credit score

There are two main reasons that you want a better credit score. (Hint: The higher your credit score on a numerical scale, the better. This is not golf.) The first reason is to get approved for a loan in the first place. Your credit score will play a large part in whether or not you can buy the house you want, or whether you get the car you want. Your credit score will also help determine how high your credit limit is on your credit card.

The second reason that your credit score is important is that it will help determine what kind of interest rate you will get. If you have a high credit score, you will be able to get a lower (or better) interest rate. With a lower credit score, you will pay more in interest charges. Over the life of the loan, this can mean thousands of dollars in differences. A higher interest rate means that you will ultimately pay much more than if you get a lower interest rate.

You can see why it is important to do your best to improve your credit score. It could mean the difference between approval and denial – and the difference between paying $1,500 in interest charges or $8,000 in interest charges (or even more on a home loan).

5 things you can do to improve your credit score

1. Make payments on time. Make sure that all of your loan payments are made on time. This includes medical bill loans, auto loans, credit card payments and any other loan payments. Being on time reflects that you are punctual in your obligations, and that the lender will not constantly be trying to collect from you. Also, realize that paying late on rent and utility bills can also reflect on your credit. Some companies and landlords will report you if you are tardy, and this can damage your credit score.

2. Check your credit report. Your credit report is an essential bit of your financial history. You need to make sure that it is accurate. You have a right to one free credit report from each of the major credit bureaus once a year. But even checking once a year is often not enough. You should check every four to six months to ensure that the information in your credit report is accurate and have errors fixed. Inaccuracies can lead to a lower credit score.

3. Keep your debt low. One of the biggest deals with regard to your credit score is the ratio of how much credit you have available to how much of it you have taken advantage of. If you have credit cards that are nearly maxed out, that reflects poorly on your credit score. It is best to try and keep your debt to about 50 percent of what is available. If you have $1,500 available on a credit card, try and keep the balance to no more than $750. It is best, of course, to realize that paying your credit cards off every month is important. Also remember that the type of debt you have is important. A store credit card is more harmful to your credit score than a major bank credit card. A payday loan is more harmful to your credit score than an auto loan.

4. Avoid too many credit inquiries. Every time you apply for a loan, and even when you apply for other things, someone looks into your credit. They want to know your credit score to see if it is likely that you will pay back your loan. When someone looks at your credit score, it is known as an inquiry. A hard inquiry is when you request it so that you can get a loan. This is the type of inquiry that impacts your credit score. (A soft inquiry is one that is initiated for offers sent to your mailbox. This does not affect your credit score.) A lot of hard inquiries in a short period of time can be especially damaging to your credit score. Try to limit credit inquiries to two or three in a six month period. Also, realize that some landlords, employers and insurance companies now check your credit score, and these can lower the score as well.

5. Pay attention to length of credit history. Understand that time is an important factor in your credit score. The longer you have had a credit history (and – more importantly – a good credit history), the better your credit score. This is why many parents help their teenagers get a car loan or a credit card. This way they can start to build a good history. It can also help to keep your first credit card open, even if you do not use it. This way, it shows that you have a longer credit history.

With some careful planning, you can create a good credit history that is backed up by a good score.

What is a credit score and what is a credit report? This article explains how credit reporting works and how to contact the 3 reporting agencies: TranUnion, Experian®, and Equifax. Learn how credit reporting, credit scoring, and credit monitoring works here.

One of the most important aspects of your personal finances is your credit. Credit is a way for others to gauge how trustworthy you are when it comes to repaying your debts. It is basically your financial reputation. Your credit is something that all lenders – mortgage, credit card, auto, and others – look at to decide whether or not they think you are likely to pay your debts in full, and to make on time installment payments.

Establishing good credit is an important part of healthy personal finances. Even if you do not have perfect credit, it is important to work toward having “good” credit. When you behave in a financially responsible manner, your credit will show that you are trustworthy, and you will be more likely to get better loan terms and be viewed favorably by employers, landlords and insurance agents as well as by creditors and lenders.

The three major credit bureaus

When someone wants information on your credit history, they get it from one of the credit bureaus. These are companies that gather financial information and then compile it. This information includes public record items (such as bankruptcy and home purchases) and reported items (such as your credit card balances and payment history from utilities).

There are three major credit bureaus:
• TransUnion: 800-916-8800
• Equifax: 800-865-1111
• Experian®: 888-397-3742

Each of these credit bureaus take information about your financial habits and compiles it into a report that shows whether your payments are made on time, how much money you owe in various accounts, what types of loans you have, information on rent and utility payment history (if it has been reported) and whether you have gone over the limit on your credit cards. This information is then sold to others so that they can determine whether or nor you are creditworthy.

Credit report

The information that the three major credit bureaus gather is known as a credit report. It has a long history, going back as many as 10 years, showing nearly every transaction you have made that involves you borrowing money, or even setting up services like cable television or applying for insurance. Even job information can be found in some credit reports. Here are some of the other things that might appear on your credit report:

• Current address and your address history.
• Bankruptcies and tax liens.
• Your birthdate.
• Your spouse’s name.
• Information on delinquent bills.

There are laws that regulate how your credit report can be used. Banks and other lenders can check your credit report anytime, to see if you are creditworthy. Others, though, such as landlords and employers, must have your permission (usually given when you sign an application) to pull up your credit report.

Realize that with so much information out there, inaccuracies are inevitable. Sometimes duplicate accounts will show up, implying that you have more credit cards than you really do. Or an error by a bank may show that you are late on a payment. It is important to check your credit report regularly to look for such inaccuracies and have them fixed. Problems on your credit report can lead to denial of a loan down the road. You are entitled to one free credit report per year from each of the three major credit bureaus.

Credit score

Your credit score is, in essence, your credit report summarized and reduced down to a numerical value. Each of the credit bureaus has its own credit scoring system, based on the information that it has in your credit report. On top of that, there are other credit scoring systems. Basically, though, there are a few things that your credit score accounts for:

• Length of your credit history.
• Number of late payments.
• Types of credit that you have.
• Number of inquiries into your credit history in a short amount of time.
• How much of your available debt you are using.

This information is then used to determine whether or not you will get a loan, and also what kind of terms you get on the loan. For instance, someone with a credit score of 750 is going to have a lower interest rate (maybe even a much lower interest rate) than someone with a score of 605. This can translate directly into money saved over the life of the loan.

It is important to develop good credit. In order to do this, it is best to make all your payments on time, pay down current debt and avoid getting into more debt. With a little time, and the cultivation of good financial habits, you can improve your credit.

Federal Laws include credit reporting, collections, billing acts, and more. Learn how these federal credit laws affect you and how companies are allowed to bill, report, and collect from you. It’s important to understand lending and credit laws to avoid credit problems.

It is important to know your consumer rights. There are some very definite laws that protect you from unscrupulous creditors. Unfortunately, few people know their rights, and are harassed needlessly. Here are some of the basic credit laws, and how they protect you:

Fair Credit Reporting Act (FCRA)

The idea behind FCRA is to protect you from inaccurate information in your credit report, and to protect your privacy. This credit law is designed to ensure that credit reporting agencies strive to provide accurate and complete information to those who are looking into your credit history. Here are some of the basics:
• You have a right to your credit report. A small fee can be charged, but recently, a law was added that states that you can get one free credit report each year from each of the three major credit bureaus (Experian, Equifax and TransUnion). Additionally, the credit report must have all the information in your file at the time of your request.
• You have the right to know the name of any company or person that requests your credit information in the past year. For employers, that is extended to two years.
• If a company denies your credit application, it has to provide you with the name and the contact information of the credit bureau it used.
• If you have been denied credit, you can request a free copy (this is on top of the required yearly copy) of your credit report from the credit bureau that was used. However, you must request this copy of your report within 60 days of the denial.
• The credit bureau and the company or person that provided information to the bureau must investigate your claim if you find an inaccuracy and dispute it. If you are right, the issue must be resolved within 30 days.
• If you feel that a dispute has not been resolved to your satisfaction, it is possible to add an explanation to be included on your credit report.
• Outdated information (that is 7 years old or 10 years old for bankruptcies) cannot be included on your credit report. This is to protect you from old negative information.
• You have the right to contact a credit bureau and have your name excluded from insurance quotes and unsolicited credit card offers.
• Only those who legitimately need to know your credit have access to it (lenders and banks). Others (employers, medical personnel, etc.) much get your permission first.

Equal Credit Opportunity Act (ECOA)

This credit law basically says that creditors and lenders cannot use race, sex, marital status, public assistance, religion, origin or age as factors in deciding your credit worthiness. This law states that if you receive public assistance in a reliable manner, it must be considered as income. Additionally, the ECOA assures your right to know the reasons behind any decision to deny you credit.

Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA)

These two credit laws work in tandem to set the rules for how to resolve mistakes in the event of credit billing and mistakes due to electronic fund transfers. Some of the things covered in these two acts include:
• Unauthorized or fraudulent purchases or electronic transfers.
• Transactions that are identified incorrectly, or that show the wrong amount.
• Errors in computation.
• Problems with showing credits, transfers or payments correctly.
• Not sending statements to your current address. But you are responsible for sending the information to your creditors – in writing – at least 20 days before the end of the current billing period.
• Requested explanations and documentation with regard to errors.

Note that the FCBA mostly applies to accounts like credit cards and checking accounts with overdraft protection. Loans and debit cards unattached to overdraft checking are usually not covered. With the EFTA, electronic banking transactions, such as ATMs, debits at the store and other similar transactions are covered.

Fair Debt Collection Practices Act (FDCPA)

This is a credit law that protects you from badgering and harassment by debt collectors. Additionally, this law prohibits debt collectors from using deceptive practices. Debts included are family, household and personal, and include all money owed – including for medical bills, car loans and credit cards. Here are some of the highlights of the FDCPA:
• You can only be contacted between 8 a.m. and 9 p.m.
• Debt collectors cannot contact you at work if you have said that your employer disapproves.
• You cannot be harassed, abused or oppressed.
• Debt collectors cannot lie to you. This includes the implication that nonpayment constitutes a crime.
• Debt collectors must clearly identify themselves when they call.
• If you ask, in writing, for debt collectors to stop contacting you, they must.

Because laws are always changing, and because state laws often offer added protection, it is a good idea to look up all of these laws on your own in order to assure yourself of changes – and to stay up to date on additional rights you may have.

For more information, you should also visit the Web site of the Federal Trade Commission: www.ftc.gov.

Identity theft prevention and identity theft reporting are both discussed in this article. Keep your credit history clean and avoid identity theft by checking your free annual credit report with the top 3 reporting agencies. Identity theft and identity fraud are common credit problems.

One of the things that can be most damaging to your credit history is identity theft. Identity theft occurs when someone pretends to be you in order to get some sort of benefit. This can be using your Social Security number to get approved for a loan, stealing your credit card information and making purchases, or any number of things in which someone acts as you.

Because unauthorized purchases and new credit accounts can damage your credit rating, it is important to be vigilant. Do your best to minimize your risk of identity theft, and keep tabs on your accounts and credit report so that you can catch any problems – and work to solve them – as quickly as possible.

Protecting yourself from identity theft

In today’s world, it is impossible to completely protect yourself from identity theft. Because of how much information is being shifted around, and stored, it is possible for any number of actions to ultimately result in identity theft. There are many forms of identity protection and building online. There are, however, some things you can do to limit the risk of having your identity stolen:

• Be wary of people asking for your personal information. Do not disclose entire bank account numbers, Social Security numbers and other information over the phone, through the mail and on the Internet. Make sure that you are dealing with a reputable company. Don’t be afraid to ask how the information will be used, and don’t be afraid to request another method of identification.
• Only carry what you need with you. Social Security cards (memorize your Social Security Number) and extra credit cards should be kept in a safe place at home. This way, if someone grabs your purse, all of your information does not fall into the wrong hands.
• Memorize PINs and passwords. You should not carry them on your person. Keep them in a safe place at home. Also, memorize account numbers that you use most often.
• Choose passwords that are easy for you to remember, but that aren’t easy to figure out. Your mother’s maiden name, your children’s names, birthdates of family members and other information that is easy to come by should not be used. Passwords are most secure when they include a mix of upper and lower case letters, along with some numbers.
• Do not lend your credit card to ANYONE. Always keep it in your possession.
• Shred documents with personal information including driver’s license number, Social Security Number, account number and authorization codes. This also includes credit card offers. Always shred them so that someone else can’t get a card in your name.
• Do not write your account number or other identifying information on the outside of envelopes or in any other visible place.
• Do not let your Social Security Number be placed on your driver’s license.
• Compare your receipts to your monthly bills, and always balance your bank statements. This way you can catch unauthorized purchases more quickly.
• Check your credit report on a regular basis. This way you will be able to see inaccuracies that can be warning signs of identity theft.

If you are a victim of identity theft

If you do become a victim of identity theft, quick action is of the utmost importance. You must act quickly to limit and repair the damage.

• Immediately contact the three major credit bureaus and let them know of the problem. Have them place a “fraud alert” (this service is free) on your credit report. This will ensure that your permission has to be obtained before any new accounts are opened using your name.
• Call the local police department and file a report. Make sure to get a copy for yourself. This is often the proof that creditors need in order to sort out whether you are liable for fraudulent charges.
• Report the identity theft to the federal government by calling 877-IDTHEFT.
• Contact each creditor that has a fraudulent account. Close the accounts that were not opened by you. Notify creditors of accounts you did open of fraudulent charges. Follow up in writing. See about getting a new account number and credit card issued. Password protect your accounts.
• Close any bank accounts that have been accessed by the perpetrator. Stop payment on any checks that have been stolen. Get a new account (with password protection) and new ATM cards and PINs.
• If mail has been stolen, or if a change of address form has been falsified, notify the local inspector at the post office.
• Make sure that the Social Security Administration has the proper information on your employment (in case your Social Security Number has been stolen).
• If you suspect that someone been using your identity to get a driver’s license, or if your driver’s license number is being used for identification, let the local DMV know.
• Order new copies of your credit report after 60 – 90 days to verify that corrections have been made to your credit history.
• Make sure that you are documenting all of your contact with others (names and phone numbers, dates and times) throughout the process.

Do not rest your vigilance when it comes to keeping your identity safe. Your financial reputation depends upon it.