Knowing the information on your credit report helps you qualify for different types of financing, from mortgage loans to credit cards. Some consumers don't review their own credit report, which often results in errors and identity theft. Learn the importance of an accurate credit report and learn how to acquire your personal file.
Purpose of Reports
Credit reports are documents that reveal your entire credit history; they feature every credit account that you've held in recent years and the status of each account. Lenders checking your credit to assess your habits can see this information, and based on their findings, they decide to approve or reject your application for a credit card or loan. Factors that harm credit reports and scores include late payments, delinquencies, collection accounts, bankruptcies and foreclosures.
Free Credit Reports
Every consumer should check their personal credit report at least once a year. Every consumer has three credit reports available from the three major credit bureaus--TransUnion, Experian and Equifax. Consumers can request a free report by contacting each bureau individually, or by requesting free reports from Annual Credit Report. Annual Credit Report is the company authorized to provide consumers with free reports from each of the bureaus. Consumers can request a report online from the company's official website and view their complete reports within minutes.
Disputing Mistakes
Credit report mistakes can occur, and depending on the seriousness, mistakes can impact credit scores. What's more, someone can steal your personal information and open an account in your name. This fraudulent account can appear on your credit report and possibly lower your personal score. If ordering credit reports from Annual Credit Report, there's a link on the website that lets you file a dispute online. You can also dispute errors by contacting the creditor who reported the information and asking them to investigate the mistake and update your file.
Reports and Inquiries
Checking your own credit report will not reduce your credit score. However, credit checks or inquiries conducted by creditors and lenders can impact your credit score. Sporadic or one-time inquiries may not affect your rating. On the other hand, frequently applying for credit, such as completing pre-approved credit card offers, or completing applications for a retail charge card will take points off your score. Only apply for credit when necessary.
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