How to Check Credit Report

It is a good habit to regularly check your credit report to review your credit score and look for any changes that may affect your credit rating. Also, people who are worried about suspicious activity can also view their credit report to inform authorities about potential identity theft and put a fraud alert on the credit report. Luckily you can check your credit report for free through various credit reporting agencies.

Instructions

1

Go to the Annual Credit Report website (see Resources). This site is backed by the Federal Trade Commission and provides free annual credit reports to those who request one. If you need more frequent credit reports, you will have to pay a modest fee.

2

Provide your social security number, full name, address and date of birth. If you request your credit report online, you will be redirected to a secure page on Annual Credit Report to give this information.

3

Choose the credit reporting agencies that you want to receive a report from. The three central credit report providers include Equifax, Experian and TransUnion. You should opt to receive a credit report from all three agencies. You can also visit each agency's individual website to check your credit report.

4

Check your credit report by sending in an annual credit report request form to the Annual Credit Report Request Service. You can download the site from their website and mail it to Annual Credit Report Request, PO Box 105281, Atlanta, Georgia 30348. You will then receive a copy of your credit report via mail.

5

Call to check you credit report. The final option that you have is to contact Annual Credit Report by phone. Call 1-877-322-8228 and follow the prompts to receive your credit report.

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Equifax Vs. Transunion Score

Equifax and TransUnion are agencies, which report people's credit history with information received from retailers, banks, collection agencies and mortgage lenders. Equifax has been in business since 1899 and TransUnion since 1969.

Comparison

Equifax has offices in 15 countries on three continents, TransUnion has offices in 25 countries on five continents.

Score

Equifax uses Score Power to report people's FICO scores that range from 300 to 850. TransUnion uses zendough to report credit scores with a range of 300 to 900.

Format

Equifax provides credit-report history as short statements. TransUnion displays credit history in a table format.

Coding

Equifax and TransUnion use codes to report spending and borrowing information. Equifax and TransUnion codes may have different meanings that are interpreted differently by companies that read the reports.

Benefits

Consumers can obtain an Equifax or TransUnion credit report to let them know what information has been reported about them by retailers, banks and collection agencies. When people obtain their credit report, they are able to check for errors.

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How Will a Deed-in-Lieu Affect My Credit in California?

In 2010, California had the third highest foreclosure rate in the United States, with 1 out of out every 240 homes in foreclosure. Many of these homeowners choose to give the bank the deed to the home, or deed-in-lieu, instead of trying to pay the mortgage. However, if you choose a deed-in-lieu of foreclosure, it affects your credit the same way as in any other state.

Identification

A deed-in-lieu of foreclosure has the same impact on your credit score no matter where you live. Depending on your credit history and credit score before you completed the deed-in-lieu, your score drops anywhere from 85 to 160 points, according to Les Christie of CNN Money. A deed-in-lieu usually does a little less damage to a credit score than a foreclosure or short-sale, but it is essentially the same in the eyes of lenders.

Tax Lien

California has slightly more favorable credit reporting standards than most other states. For example, the bureaus can only report a lien for seven years after you pay it off or 10 years from the filing date. Unpaid tax liens can remain for 10 years. This is important, because your deed-in-lieu might result in tax consequences if you owe a deficiency balance. Your lender might be able to pursue a leftover mortgage balance after you trade in the property. If you cannot afford the tax on the canceled debt income when you file your taxes, the Internal Revenue Service will issue a tax lien against any of your property. California is a non-recourse state, so it does not allow lenders to pursue deficiency balances except in certain cases, such as a line of credit secured with the home.

Considerations

If you cannot handle a mortgage and it gets to the point where the bank accepts a deed-in-lieu of foreclosure, you probably already have numerous negative items and terrible credit. Thus, the deed-in-lieu likely does little to affect your credit score much. You might benefit more from a deed-in-lieu than most other options, because a deed-in-lieu of foreclosure happens more quickly than foreclosure and short-sales, which means you can start rebuilding your credit sooner.

Tip

Explore every option available before choosing a deed-in-lieu of foreclosure or anything that results in defaulting completely on your mortgage. Your bank might be able to offer a loan modification under the federal Making Home Affordable program. You could try to sell the home for an amount that covers your mortgage. Whatever you choose, ask your bank how it will report the account. Anything less than "paid as agreed" usually hurts your credit rating.

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Are There Any Legal Ways of Getting Bankruptcy Off Your Credit Report After Four Years?

Going through a bankruptcy can do significant damage to your credit score, and any time you can get a bankruptcy off your credit report early will help your score. Federal law dictates how long a bankruptcy, and other negative factors, must remain on your credit score, and you can only get it removed if it is there in error.

Mandatory Period

If you go through a bankruptcy, your credit report will reflect this for up to 10 years from the date upon which the bankruptcy case is filed, according to the Federal Trade Commission.

Credit Reports

Whenever you take part in a consumer credit transaction, such as by paying your bills, applying for a loan or going through bankruptcy, a history of your actions gets included on one of your three consumer credit reports. These reports are maintained by three main companies: TransUnion, Equifax and Experian. It is up to these companies to collect information from various sources and include the relevant data on your credit report. As a consumer, you have the right to look at your credit reports once a year, free of charge.

Errors in Your Report

While bankruptcy information, even when a bankruptcy is filed but later dismissed, has to remain on your credit report for 10 years, errors on your report can be removed. For example, if you filed for bankruptcy protection but voluntarily withdrew the case before the court issues a discharge of your debts, and your credit report fails to show the dismissal, you can demand that this information be changed to accurately reflect the status of the case. Any time you find erroneous information, you have the right to have it changed by contacting the credit reporting company on whose report the information appears.

Non-Erroneous Reports

If your credit report has errors or mistakes, you cannot legally have the record of your bankruptcy removed. You cannot, for example, make false statements or misrepresent the facts about your bankruptcy in an effort to get your bankruptcy removed from the report.

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How to Recover From Personal Bankruptcy

Filing personal bankruptcy stops harassing phone calls from creditors and gives you the chance to wipe out your debts and make a fresh start. While you're no longer liable for debts after a bankruptcy, this process ruins your personal credit score. A low score can stop you from getting a mortgage loan or auto loan in the future. Thus, it's smart to rebuild your credit score and recover after a personal bankruptcy.

Instructions

1

Review your credit report to make sure creditors update your file. Order your credit report from all three credit bureaus a few months after your bankruptcy discharge. Debts included in the bankruptcy should have an entry that reads, "included in bankruptcy." If you don't see this notation, contact the creditors and ask them to update your file.

2

Manage old debts. You have the option of excluding some debts from the bankruptcy process such as a home loan, vehicle loan and student loan. Recover faster from a personal bankruptcy by paying these creditors in a timely fashion--by the due date.

3

Acquire new credit and start fresh. If all debts were wiped out in the bankruptcy, apply for a new credit line and begin rebuilding your credit history. Go to a local bank or credit union and pick up an application for a secured credit card. Ask about the security deposit and other start-up fees for this type of account. Secured cards have an easy approval process and are designed for people who can't qualify for unsecured credit cards due to bad credit.

4

Keep debts to a minimum. Learn from past mistakes and avoid accumulating debt. Use credit cards to build credit, but give yourself a low monthly spending limit. Pay off your new charges at the end of each month to stay debt free.

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Does Applying For Credit Lower the Rating?

Credit applications are part of most consumers' lives. People open new credit card accounts, apply for vehicle loans or fill out mortgage applications to buy new homes. Lenders review their credit reports or check their credit scores before opening the account or granting the loan. These inquiries are all noted by the credit bureaus and become part of the consumers' files, where they may affect future creditor decisions, according to the FICO credit score company.

Factors

Many factors go into determining a person's credit rating, including the number of accounts, current balances, credit limits and payment histories. These items are visible on the credit reports put together by the TransUnion, Experian and Equifax credit bureaus, and they are used by FICO and other credit score compilers to calculate scores that indicate whether the person is a good risk for a loan or credit card. Inquiries by lenders evaluating credit applications also go onto credit reports and get figured into scores, according to FICO.

Types

Credit inquiries come in two different types. One is called a soft inquiry, and it happens when businesses check credit to make promotional offers to consumers, when one of a person's current creditors looks at the records, or when people check their own credit reports. Soft inquiries have no affect on credit ratings, according to FICO. Hard inquiries are credit report reviews that result from applications for new loans and accounts. FICO explains that hard inquiries sometimes lower the credit rating.

Effects

Hard inquiries often have little or no affect on a person's credit rating. The credit score drop caused by a single inquiry should be less than five points for most people. Consumers with a short credit history, or those who apply for many different accounts within a short time span, can see a bigger drop. Inquiries show up on credit reports for two years, according to Bankrate financial site columnist Don Taylor. They lose their impact as time passes and disappear completely at the end of that period.

Purpose

Credit ratings drop when people seek many new accounts because such people pose a greater statistical risk for defaulting on credit cards and loans. FICO notes that people with six or more hard inquiries on their credit files are eight times more prone to filing bankruptcy than consumers with no inquiries at all.

Considerations

Some consumers shop around for the best deals on major financial transactions like car loans and home mortgages. They may fill out several credit applications within a few weeks as part of the process. FICO's credit score formula allows for loan shopping and considers multiple inquiries that happen with two weeks as a single credit check.

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What Is a FICO Score Based on?

The Fair Isaac Corporation, also known as FICO, uses an individual's credit information in order to come up with a score which can range from 300 to 850. Lenders are then able to review the score and determine an individual's creditworthiness.

The Facts

A FICO score reflects the information found in an individual's credit report, which is available through any one of the three credit bureaus including Equifax, Experian and TransUnion. Information regarding five major areas such as payment history, account balances, length of credit history, newly established credit lines and credit types are used to calculate a FICO score. The importance that is placed on each of these areas varies depending on each individual and on their recently updated credit information.

Time Frame

A FICO score is based on information that has been reported to the credit bureau and listed in an individual's credit report. Due to delays in the reporting procedures used by some creditors, the score may not be based on activities from the most recent months.

Considerations

An individual's age, employment and banking information are not part of a FICO score. However, a FICO score does take into account all closed accounts, regardless of whether they were paid off on time or delinquent.

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