How to Get a Credit Report at No Charge

By law, you can view your credit report for free once per year from each of the major credit reporting agencies: Equifax, Experian and TransUnion. You should do this yearly to check the accounts listed on your credit reports to make sure there are no inaccuracies. There are several ways you can get your credit report and it will only take a few minutes of your time.

Instructions

1

Go to to AnnualCreditReport.com and fill out an application to view your credit report. Fill out your personal information and answer financial questions to confirm your identity and submit the form to view your report.

2

Call Experian at (888) 397-3742 or TransUnion at (800) 888-4213 to get your credit report for free. Equifax does not have a number you can call to obtain your credit report. When you call, give your personal information over the phone and verify your identity and the agency will mail your report.

3

Complete the Annual Credit Report request form and mail it in to receive your credit report from each agency in the mail. You only need to fill out this one form to receive your free credit reports and you will need Adobe Reader to view the form.

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How to Remove Sallie Mae from Your Credit Report

Consumers' credit reports are very important and can impact their chances of getting a loan, a credit card or even a job. Consumers have the right to inspect their credit reports and can have them changed. If Sallie Mae, or anyone else, has reported a false or erroneous credit item on your report, you need to know what options are available to you and what steps you have to take to protect your credit history.

Instructions

1

Know what your credit reports state. Before you can challenge or remove anything from a credit report, you first have to know what those reports contain. Every consumer can request a yearly free copy of their credit reports from the three credit reporting agencies: TransUnion, Equifax and Experian. You can also visit the Federal Trade Commission site set up for this purpose: http://www.ftc.gov/freereports. If you've already viewed your yearly free report, you can contact the credit reporting agencies or use a company that will collect them for you.

2

Look for inaccuracies. After receiving copies of your credit histories, inspect them for errors. If Sallie Mae, or any other party, has erroneously made a claim that appears on your report, you can dispute it. Make sure to check all three reports, as the information that appears on each of them is not always the same.

3

Dispute any mistakes. The Fair Credit Reporting Act (FCRA) allows consumers to dispute inaccuracies or errors on their credit reports. If Sallie Mae has reported an item you believe is in error, you can send them a letter and demand they contact the credit reporting agencies and have the error removed. Provide evidence to support your claim and follow up. If Sallie Mae refuses to have the item changed or removed, you can then contact the credit reporting agencies directly. Make the same demand to have the item changed or removed. They will have to investigate your claim and decide whether or not to comply.

4

Include a consumer statement. If neither Sallie Mae nor a credit reporting agency agrees to your demand to have the erroneous item removed or changed, you can insist that your credit histories include a consumer statement. This is a statement you can make explaining why you believe the item is wrong and anyone who looks at your credit history will be able to read it.

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How to Remove Credit History

Errors on credit histories happen. Equifax reports that it maintains the histories of over 200 million consumers with over two billion updates per month, with data being reported from over 15,000 sources such as lenders and credit card companies. Occasionally, consumers will find inaccurate data reported on their credit reports and often, history that should have been removed remains on the credit report after the allotted time period. Following the guideline below will enable the consumer to remove credit history from their credit report if the allotted time has passed.

Instructions

Steps to Remove Credit History

1

Contact the credit bureaus directly to request removal of inaccurate information. Send all copies supporting your dispute and ask for an investigation. The bureau has 30 days to investigate and verify it as inaccurate, which will remove the information, or accurate, which will keep the information on your credit report.

2

Write the information provider directly, asking them to verify the inaccuracy. After 30 days, send a demand letter, ordering them to remove the unverified information immediately. If the information provider cannot verify its accuracy, they are legally obliged to remove inaccurate data.

3

Write the credit bureaus directly when the reporting period for the history has passed. Many negative credit items do have a time period. Credit checks can be reported for two years, credit defaults can be reported for seven years, and bankruptcies can be reported for 10 years. However, for certain insurance plans, high-paying jobs background checks, or government positions, there is no time limit on how long data can be reported.

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How to Improve Your Bad Credit Score

If you have bad credit, you can improve your score with a little work. You credit score determines your ability to get approved for loans as well as the interest rates you may get on those loans and credit cards. Staying on top of your debt and getting your bills paid help improve your score, but it does take time.

Instructions

1

Get a free copy of your credit report. The national credit reporting agencies Experian, Equifax, and TransUnion are required to provide you with a free credit report every 12 months.

2

Review your credit reports. If you find any errors notify the credit reporting agency in writing. Detail the error and provide any supporting documentation you have and mail it to the credit reporting agency. The credit reporting agency has 300 days to investigate and respond to the error. If a correction is made all three credit reporting agencies will be notified.

3

Review your debt. Late payments can seriously damage your score, so make all of your payments on time. If you don't have enough money to cover these payments, call the creditor immediately and let them know your situation. They may be willing to work with you by allowing you to pay an interest only payment or to defer your payment until you are able to pay. This will avoid additional late fees and damage to your credit score. Pay off any debts that have gone to collection.

4

Keep your balances low on credit cards. Having a lot of outstanding debt can seriously damage your score.

5

Get help you need it. If you're having trouble paying off or managing your debt, speak to a credit counselor who may help you devise ways to pay your off the debt.

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How to Raise Your Credit Score 50 to 100 Points in 6 Months

If you have run into circumstances that led to a poor credit rating, it can be disheartening to realize it may take years to rebuild your credit. The good news is that it is very realistic to raise your credit score 50 to 100 points in six months. Even better, the steps you must take to get these short-term results will put you firmly on the road to fully rebuilding your credit in the long-term.

Instructions

1

Bring every one of your credit accounts up-to-date so you are paying them on time. Late payments won't drop off your credit history in six months, but the longer you stay current on payments, the less old late payments listed will count against you. In addition, this is the single most important factor in calculating a credit score. Late payments will make it very difficult raise your credit score.

2

Make arrangements to start paying back any debts that are in default or that have been charged off. Once you have started making payments, these problems won't reduce your credit score as much.

3

Avoid applying for new credit accounts or closing existing accounts. Excessive credit activity like this lowers a credit score, but only in the short-term. Previous applications for credit or account closings will drop off your credit history within a year.

4

Contact any lenders where you have a line of credit, including credit cards and home equity lines of credit. Reduce your line of credit as much as possible--that is, close to the amount you currently owe on the account. Eliminating this easy access to credit reduces your risk as a borrower immediately and so helps raise your credit score quickly.

5

Order copies of your credit history from each of the three major credit bureaus (Equifax, Experian, and TransUnion). Review your reports for errors and outdated information. If you find an error, follow the instructions that come with the report for filing a dispute and have the information corrected. Under the Fair Credit Reporting Act, you can get one free credit report from each credit bureau each year. You can obtain your free reports online from the FTC-authorized provider, AnnualCreditReports.com (see References) or by calling toll free 877-322-8228.

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Companies That Help Clean Up Credit

No magic formula exists to repair the effect of a bad payment history on your credit report. But there are companies that can help you understand the laws regulating credit reporting and how to use those laws to your advantage when dealing with negative entries on your credit report. As with any field, some companies are legitimate and others are not. It is up to you to decide if an organization can help you improve your credit score or if you are better off on your own.

The Facts

There is nothing that a credit repair company can do for you that you cannot do for yourself. No company possesses "inside knowledge" or secret tactics that work better than anything you can do on your own. In some cases, credit repair companies can hurt your score rather than improving it.

Methods

The most common method employed by credit repair organizations is to dispute your debts with credit bureaus. If you have more than a few negative entries on your credit history, most companies will dispute them all at once. Not only does this make any disputes from you appear suspicious to the credit bureaus, but your disputes are less likely to merit a thorough investigation. A much better method is to dispute each debt individually because the credit bureau is more likely investigate that issue thoroughly. Ask the credit repair company to outline their approach in writing so you can review it and make your decision accordingly.

Advantages

Credit repair can be a complicated process, and to be successful at removing negative entries an individual must be fully versed in all aspects of law as it relates to credit reporting and disputes. The work involved is often too much for an individual to do himself. In cases like these, a credit repair organization may be worth the expense.

Disadvantages

If your credit report dispute is done inaccurately it can have negative long-term effects, allowing credit bureaus to consider any future complaint frivolous and meaning that you won't be able to erase a negative incident from your history for seven years (see Resource 1). Many credit repair companies do not offer any training to their representatives, meaning the person trying to fix the situation could know less about the process than you. In addition, many credit repair companies are scams, so be sure to investigate the company you choose.

Misconceptions

While some financial planning websites will tell you that you cannot remove accurate negative information from your credit report, this simply is not the case. Once a dispute is filed, the legal burden of proof lies with the creditor reporting the debt. With the large volume of consumer accounts in collections, some creditors are unable or unwilling to validate your information. If this occurs, the debt must be removed whether it is legitimate or not.

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Explanation of Credit Reports & Scores

Determining the creditworthiness and potential risk of a credit applicant is the major function of a credit score. This three-digit number is a key factor for interest rate assignment and credit applicant approval. The score is dynamic and changes monthly and even weekly. Many factors support the assignment of a credit score, so consumers need to be aware how their financial actions impact their score. Obtaining a copy of the credit report is the first step in understanding credit and improving the score if needed.

FICO Score

FICO stands for Fair Issac Corp., the company responsible for creating the FICO score in the 1980s. The FICO score ranges between 300 and 850 points. Scores over 650 represent better creditworthiness in the eyes of lenders. Scores in the lower range indicate high risk and can lead to rejected credit applications or high interest rates. The FICO score consists of five parts; payment history, account balances, length of credit history, new credit and other factors (i.e. mix of credit types). The payment history carries the most weight, 35 percent of the FICO score, while new credit and credit mix each account for only 10 percent of the score.

Credit Reporting Agencies

The individual reporting agencies -- Equifax, Experian and TransUnion -- gather consumer information from credit card companies, banks and lenders. These agencies are for-profit companies and are not affiliated with the government, but they are regulated by the Fair Credit Reporting Act. The three agencies do not exchange credit information so it is important to contact each agency individually to report discrepancies Creditors agree to report consumer information to these agencies in exchange for obtaining information on consumers to assess credit. Each agency calculates credit scores differently so it is possible for a consumer to have three different scores. Most lenders consider all three scores when determining credit decisions, although some only look at one.

Implications

Having bad credit has major drawbacks financially. Home buyers with low credit scores often receive higher interest rates that translate to more money paid over the life of the loan. Utility companies often run a credit check on new applicants, and a low score might mean a higher deposit. Many utility companies do not require deposits from applicants with good credit scores. Missing just one or two payments can cause a drop of 30 points to a FICO score. Having maxed-out credit cards also affects a score negatively. Conversely, paying down credit cards and making on-time payments affect the score positively. Opening new lines of credit affects the score negatively as well, but to a lesser degree. Buying a home will bring the score down initially but over time maintaining the mortgage will add positive value to the credit file since this is usually the largest debt in the report.

Rebuilding Credit

The first step in rebuilding credit after a bankruptcy, foreclosure or other major credit-changing event is to obtain a copy of the credit report. Consumers are allowed one free credit report per year from each agency and can order them by calling 877-322-8228 or visiting annualcreditreport.com. Report any errors on the report immediately and pay bills on time. If possible, pay down credit cards.

Resources

Debt counseling services offer consumers help to conquer debt. Consumers work with counselors to establish budgets and negotiate better terms with creditors. Debt consolidation services allow consumers to pay one fee per month, but these services should be reviewed thoroughly before enrolling because it may be more cost beneficial to pay down the individual debts.

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