How to Check Credit Score & Find Out Old Debts

In a struggling economy, loans are increasingly difficult to qualify for. Most companies now require a substantial down payment, or a high credit score to secure financing. It is important for consumers to keep an eye on their credit report and score to determine inaccuracies that may cause their credit score to drop. Under the Fair Credit Reporting Act, consumers hold the right to obtain their credit scores from each credit bureau, in addition to a description of how that value is reached. If old debt is a concern, now is a good time to contact the creditor and negotiate a settlement so derogatory credit can be removed.

Instructions

1

Order your credit report. This can be done online, by mail or by phone. You can order all three credit bureau reports combined free of charge at AnnualCreditReport.com, or you can order them individually from Equifax, Experian and TransUnion. Consumer individuals are entitled to one free credit report from each agency every 12 months.

2

Obtain your credit score. You can order your credit score along with your credit report for a charge, or you can purchase your credit score directly from the credit reporting agencies for a fee. Credit scores are calculated based on many factors, including number of accounts, amount of credit used, payment history and number of inquiries. Scores will differ among the three bureaus, since certain creditors only inquire or report to one agency.

3

View credit report and determine credit score. Review all of the reported information to determine if any errors or inaccurate information has been reported, so it can be resolved.

4

Assess old debts. When reviewing your credit bureau reports, old debts that haven't been recently paid will show as a "charge off" or "collection account." Old debts paid or charged off can include credit cards that have had any reporting in the past seven years, collection accounts, auto loan or repossession accounts, mortgage loans or foreclosure accounts, old medical bills that weren't covered under insurance. The old debts on your credit report will list the creditor name and contact information, so communication can be initiated and any issues can be resolved.