Wednesday, April 21, 2010

How to Check Credit Worthiness

How to Check Credit Worthiness

Knowing your credit worthiness can help you obtain financing and protect against credit card fraud. Many lenders will not lend you money if your credit is in poor or even average standing. Poor credit worthiness leads to difficulty when you apply for car loans, mortgage loans, utility service and insurance. Checking your credit worthiness can also alert you if you've been a victim of credit card fraud because you will see if your credit score has plummeted for no apparent reason.

Instructions

    1

    Request a free credit report through AnnualCreditReport. The federal government mandates that each person is entitled to one free credit report each year. AnnualCreditReport is a centralized site created by the three major reporting agencies. It provides a free report for any consumer who has not received a free report in the past 12 months.

    2

    Request credit scores directly from the three major consumer credit reporting companies, if you have already used the free service within the past 12 months. TransUnion, Equifax and Experian all gather credit information from your bank, utility companies and other creditors. You can request a report online or through the mail. All three companies charge a fee for providing a credit report.

    3

    Obtain a FICO credit report. FICO credit scores are the most widely used. Several credit categories make up your FICO score, including payment history, amounts owed, length of credit history, new credit and the types of credit you have used. Many lenders use your FICO score when they are deciding whether to approve you for a loan. You can obtain your FICO score online for a fee.

3 comments:

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