Managing your credit is important to make sure you get the best financing possible on any purchases you make. Also, the better your credit score, the more negotiating power you have with credit card companies. Choosing the right source for checking your credit is just as important as keeping on top of your score.
Credit Agencies
There are three major credit reporting agencies, Equifax, Experian and TransUnion. Not all creditors report to every credit agency. Because of these differences, it is important to check all three scores on a regular basis. Your credit score, FICO, for example, is based on a proprietary mathematical formula. Each agency calculates your credit score differently.
The Law
The Fair and Accurate Credit Transactions Act allows you to get a copy of your credit report from each of the three credit bureaus once every 12 months. The rules also state that you must be able to get all three reports with one contact, a phone call, letter or website inquiry. While you can get your credit report for free, you have to pay for your score, since that isn't covered by the law.
Why Your Score is Important
A credit score is one of the major things that a lender looks at when making a loan decision. Since your score is made up of information about how you have handled your debts in the past, it gives lenders a good indicator of what you will do in the future.
The higher the score the better. Sometimes the score just determines whether you will be extended credit. With some larger purchases---homes and cars, for example---the score helps determine the interest rate and fees you will be paying.
www.annualcreditreport.com
The credit reporting agencies have created www.AnnualCreditReport.com to be the centralized service to get your annual reports. This is the only site that is authorized by the agencies to provide your score.
When you are requesting your credit report you can also order your score.
Credit Bureaus
You can also order your credit score directly from the credit bureaus at their websites.
Summary
You can get your annual credit report online in many places. The safest and most reliable is the one provided by the credit bureaus themselves.
If you haven't gotten your report in the last 12 months, order your report and score at www.annualcreditreport.com so you can get the score and the information that the score is based on.
If you have gotten your report recently, then go directly to the credit bureau whose score you are interested in checking. The updated score will show the effect of the payments you have made since you last got your report.
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