Tim Gorman asked:




With many consumers continuing to hamper their ability to save money by falling deeper and deeper into debt due to relying on credit and overextending themselves learning how to raise their credit score by 100 points is becoming more important. Nationwide the average credit score is rapidly dropping and most lenders and loan providers are being forced to deny loan applications and requests for credit. Let’s be honest, the financial knowledge and money management skills of the common consumer is not where it should be causing turmoil and financial distress in many.

In order to raise a credit score prior to applying for a new loan there are a few things everyone should implement before allowing the lending agencies or institutions to conduct a credit check them. As you can expect, the first item up for grabs is to order a copy of your free credit report from the three major credit bureaus in order to review it for any errors or inaccurate data. Numerous studies have shown nearly 7 out of every 10 credit reports contain bad information which negatively impacts approximately 25% of today’s consumers.

Although it sounds bad there is actually a bit of good news. The credit bureaus are required by law (the Fair Credit Act) to review and respond to any inquiries or disputes you may have on your credit history or report within 30 days upon notification from the consumer.

With that said, once you have received your free annual credit report you will need to conduct a full review of your report in order to identify any inaccurate information or inefficiencies in your credit data in order to dispute these credit report errors with the credit bureaus.

The easiest way to perform this important task is to take out a highlighter and highlight any inaccurate information on your report making sure to annotate why the data is erroneous. This may include accounts marked as open when they are actually closed or vice-versa, late payments that never took place or in some extremes having the wrong account numbers or social security number on the file. You should also highlight any potential problem areas that you feel may be holding your credit score down.

Next you should start the dispute process with the credit bureaus. Because this action can require some time to complete (as long as 30 or more days) you should start this process immediately. Try to focus on the 2 or 3 items that you have deemed as the most harmful to your credit score and work to have them eradicated from your record first. While undergoing the dispute you can also see if you can increase your current amount of available credit by calling some of your lenders and asking to have your credit limit increased. This has the net effect of improving your credit to debt ratio which will immediately help improve your credit score.

George

Laura Evert asked:




Have you wanted to buy a house or a car but you have a low credit score? You can fix that by checking your annual credit report to see if all information is accurate. However, if you have been missing bill payments or have been going over your credit limit then you can consider counseling. Remember, the interest rate you will pay for the money that you borrow will be determined largely by the three-digit number generated from your report.

You are lucky if you have a good report and score from credit report companies but if you have a poor one, you will have big problems. Most lenders have rules that are carved in stones about handling out the best terms. These rules always place a major emphasis on your score. For instance, if their best rates are offered to borrowers with a score of 700 or higher and you have a score of 698, those two points could cost you thousands of dollars.

As FICO said, the interest rate difference between those two ratings is bout one-third of a percentage point. FICO or Fair Isaac Corporation created the FICO rating and is the most commonly used rating. You should consider understanding FICO if you want to know how to raise your credit rating. On 30-year fixed rate mortgage of $165,000, that third of a point could cost you more than $11, 172 in interest charges, assuming 629 percent is the lowest rate available. If you fall below 660, the rate goes up another.81 percent.

Of course, the numbers mentioned are averages. Today, most lenders practice tiered pricing with interest rates rising as ratings go down. You annual report should be monitored if you want your level not to go down. However, each ender chooses its own “break points” between tiers. While one lender may increase the interest if the level falls below 700, another lender might not charge higher rates until the level is 690 or lower. The picture being painted here is that if you stick with one lender whose break point is 700, raising your level from 698 to 701 can be vital.

This underscores the importance of not only doing means on how to improve credit level but also shopping thoroughly when looking for a mortgage. From a mortgage broker’s point of view, who can choose among a sea of many lenders, no sharp break points exist. As a consumer, you should do what a good broker does and look for a lender that offers the best rate to a specific level.

Henry

Max Maltz asked:


Why is it important you get your free annual credit report?

 

to ensure you are protected from identity theft and fraud to help you attain the mortgage you need to insure you receive the lowest possible interest rate on a vehicle or consumer purchase to make sure a potential employer or landlord sees accurate information of how you handle money

 

The three major credit bureaus – Equifax, Experian and TransUnion – are required by Federal law to provide you as a consumer with a free annual credit report. According to the FCRA upon your request once a year, you can receive your credit score at no cost.

This is good news for those consumers who are on a tight budget and can’t afford the fee the credit bureaus normally charge. The credit bureaus do typically charge a fee, under other circumstances.

It’s important to know you may only request a free annual credit report every 12 months.

Consumers beware… There are many websites offering a free report, but you may find out some will require you to buy something in order to get it.

It’s a good idea to investigate websites that may be questionable about getting something for free, especially if there’s a stipulation that goes with it.

The fastest and simplest way you can get your free annual credit report is to request it online.

With this request, you will have to enter your personal information. Although it varies by website you will typically be required to provide the following:

 

full name address social security number

 

If you have resided at your current address for less than two years, a former address is requested. This information helps to establish stability within the past several years. Once you have submitted your information and request, you will receive your credit report instantly.

It’s your responsibility to ensure the data on your report is accurate. Even if your credit is bad, knowing what’s on your report is the #1 step to repairing your credit. I hope you have found this information helpful about understanding and obtaining your free annual credit report.



Nicholas

Bart Newman asked:




Credit reports are very important in many ways. It does not only tell you your credit standing, it also helps you on your loan, credit card, and job applications. These reports are generally the basis for the approval of such applications. For this reason, having an updated copy of the report at least once a year is very important. And if you want to know the best ways to order a credit report, you’ve come to the right place.

There are three ways to order a credit report. One way is to print out the annual credit report request form and mail the copy to the agencies that offer free report. And if you’re not comfortable with this method, you may order the report by phone.

There are three major agencies where you can get this report from. These are Experian, Equifax and TransUnion. What’s great about them is that they offer free once a year. Here’s how you can order a credit report from each of these agencies.

Experian

Ordering this report through Experian is pretty easy. You just need to fill out a request form and you’ll get your the report in a matter of seconds. After viewing your report, take note of the report number in case you need to view it again within 30 days.

Equifax

With Equifax, you’re offered various features and product promotions. And although you’re not really required to get the extra services that this company offers, you may avail of their credit monitoring and analysis services at a discounted price. Equifax also allows you to view the report again within 30 days.

TransUnion

As a new TransUnion user, you would need to create your own account with them. And if you already have an account, log in to view your credit report. Like other two agencies, TransUnion allows you to view your report again within a 30-day period.

Although it is not really recommended that you constantly check your report, there may be times that you would need to view them again even after you’ve used up all your freebies.

Aside from these the three bureaus, there are also other online sites where you can order a credit report. At any time, you can purchase this information online by subscribing to monitoring program that offers regular access to this data. But just be vigilant to make sure that they are credible companies. There are sites that pretend to give your report after you fill out a request form but are actually scammers trying to steal your personal information.

Gerald

Emanuele Allenti asked:


Some people are curious about their credit report and would like to know if it needs repairing. A free annual credit report will let you know if your credit score is in trouble and is in need of serious repair. You may think that your credit score is fine one year, but could take a tumble the next year. A free annual credit report will mean that you can look at your credit score every year and see what has happened–whether it has gotten better or worse. A free annual credit report will let you know this and will let you know if you need to do any work on your credit score.

If you are interested in receiving a free annual credit report, then you can do this in a number of ways: you can order your free annual credit report by telephone, or by mail, and you can also order your free annual credit report through the Internet. If you are looking for instant access to your credit score, then the Internet is the best way to do it.

But if you are going to view your free annual credit report online, then you need to be aware of unofficial sites. There is one way to ensure that the website you are viewing is official: The website will have HTTPS in the address bar when you are entering sensitive information, rather then the traditional HTTP. This will be because you are swapping sensitive information and then no one will be able to see what you are typing.

If you are never really sure about your credit score, then a free annual credit report will keep you up to date with how good or bad your credit score is. But also when viewing your credit report, you will need to make sure that everything is being kept up to date and that your information is not being used by someone committing identity fraud.

There was a time when we would have to guess what our credit score was. It seemed that we would never be able to know our own credit score. But those days are over now: all American citizens are entitled to a free credit report score. The ability to get your free credit report score is a huge relief for many Americans, as they would like to know their credit scores instead of having the figure hidden in a bank’s computer files.

If you want your free credit report score, then you have to understand that it will be different from your annual credit report. An annual credit report will let you know your monthly credit rating with your accounts that you currently have open and the ones that have been closed recently. A credit score, however, will just give you a three figure score based on your credit history.

A free credit report score is a good idea if you already know your credit rating and would just like to know your credit score. Most companies get an idea of your credit score by obtaining information from lots of different customers. Then they get a credit score system and that is how your credit score is determined; it may seem strange, but that is how it’s done.

Your free credit report score is a great way to just get a glance at your credit rating. You will see where you are on a scale based on the bank’s rating system. There will be a side of the bar that is green that will indicate that you have a high credit rating, but there is also a red side of the bar, which of course indicates that you have a bad credit rating and you need to improve it sooner rather then later. Your rating will be written down and you will see where you are on their chart. You will obviously want to be nearer the green side of the bar when you receive your free credit report score.



Erik

Amy Gordon asked:


Keeping data of your annual credit report is very important because the importance of the credit reports have increased to a great extent. Nowadays, you must be aware of every ups and down in your credit status as every financial matter is related with your credit scores. Anytime and at anywhere like while seeking a loan, while applying for credit cards, getting an auto or a home loan or for applying for a job; you will have to produce your credit reports. So, it is very important to know about your credit status and the free annual credit reports will be helpful for you in that context.

Visiting the credit bureau to know your credit reports frequently is not possible. So, you should do such arrangements that these reports are easily available to you. One best way is to go for the online facilities and get information on what you want just by sitting in your home. Just provide the required information like your identity and then avail the reports easily. This will help you in being informed and alert for your records and hence you will be able to avoid any possible unwanted situation.

Such credit reports use to keep data of all kind of expenses, credit status, loans and repayments, major financial transactions and outstanding payments. As the credit scores are being provided in such reports so it will be helpful for you to take precautionary steps if the credit score is going to be poor. These will also save you from suffering any sort of identity thefts.

The free annual credit reports use to be of several types like consumer credit report, business credit report or personal credit reports. Therefore, you will be updated quite easily through such free such services and will be able to keep problems away.



Hector

Jay Delgado asked:


You have the right to obtain one free credit report a year from each of the major credit reporting agencies: Equifax, Experian and TransUnion. Reviewing your free credit reports each year can be extremely beneficial when it comes to protecting and improving your credit standing. If you have not taken advantage of this free resource, you should do so immediately.

There are three ways that you can order your free report:

* Online: When you order your credit report online, you will be able to view and print it instantly.

* Phone: 1-877-322-8228. If you order your report by phone, it will take 15 days to process your request.

* Mail: Annual Credit Report Request Service, P.O. Box 105281, Atlanta GA 30348-5281. You will need to fill out a request form to order your report by mail. It may take 3 to 4 weeks to receive your report through the mail.

Remember; you can only obtain your free annual credit report through Annual Credit Report; you can NOT contact the credit agencies directly for your free report. They will provide you with a report, but you will have to pay for it (average cost $10.50).

When you request your free credit report, you need to have the following information: address, social security number and date of birth. If you have lived at your current address for less than two years, you will need to provide your previous address. You will also need to be able to provide information about your personal financial affairs so that the bureaus can confirm your identity. Some of the most common questions asked by credit bureaus involve information that you are very familiar with such as the amount of your mortgage payment, car payment or credit card balance.

In addition to one free annual credit report, there are special circumstances where you may be eligible for a free report directly from one of the credit reporting bureaus:

* Adverse Action: If you are turned down for credit, employment or insurance benefits because of information contained on your credit report, you are entitled to a free report within 60 days of receiving notice of the action. The notice will include all the information you need to request your free report.

* Unemployment: If you are unemployed and plan to look for a job within the next 60 days, you can request a free credit report from one of the three main credit reporting agencies. You are only allowed one per year. This also applies for families receiving public assistance.

* Identity Theft: If your report is inaccurate because of fraud or identity theft, you can request one free copy per year.

Most financial advisers recommend that you review your credit report for errors every 90 days. If you are not requesting your free reports regularly, you could be putting your financial future in jeopardy. Nearly 25% of credit reports contain errors that can lead to a denial of credit. Yours may be one of them, but you will never know unless you check it out for yourself.



Michelle

Helen Hecker asked:


If you want to get rid of negative credit you can easily take a few steps to completely turn it around and see a significant improvement in your credit score. Thousands of people face the same problems and assume it takes a credit professional or credit repair service to do it for them. These offline and online credit services don’t come cheap and often people spend their hard-earned money trying to fix negative or bad credit.

First of all you may not know what is actually on your credit report today. You may assume you have bad credit based on your payment history in the past or you haven’t had the courage to get a copy of your credit report even though it’s free. Many resist this because of the fear of what they think they may find. However you may be surprised. There may be entries on your credit report that are totally false and can be easily corrected or there may be entries you can easily change with a little documentation.

Really it’s not that difficult to get these corrections taken care of on your credit report. You can actually take care of it pretty fast and it won’t cost you a dime other than a first class stamp. In actuality you can do a better job than any credit repair clinic because you’re in the position to actually add some positive credit marks to your report if you know how to do it and I’ll explain below.

Okay these are the 3 simple steps to repair your credit history.

1. First get a copy of your free credit report if you don’t already have a CURRENT copy. Everyone is entitled to a free credit report every year according to federal government laws. You can get an absolutely free annual credit report online instantly at the approved Web site: type in ‘annualcreditreport’ and then a dot and then com. You’ll be able to print it out as soon as you provide identification.

You can also call 1-877-322-8228. When you call you’ll get an automated service. Know what phone number you’re going to use as that is a requirement in the process. However it will take about 15 days to get the report. You can also write but instant online or calling is easiest. This free service is sponsored by the three credit reporting agencies – Equifax, Experian and TransUnion.

Now you must know that you won’t get your credit rating or score when you get the report. There is an additional charge to get a score. However if you recently applied for credit and were turned down, call the lender and ask what your score is. You can usually find out that way for free.

Once you have your credit report in hand, sit down and note any negative items or anything that doesn’t seem right to you. You may find a few mistakes, sometimes even with your birth date or other personal information. These are easily corrected. There can be some totally false information such as credit information for someone else with the same name or similar name.

2. Write a dispute letter. It’s easy to write a dispute letter. If you’re not sure how to do this, sit down and pretend you’re writing a letter to a friend. It does not have to be fancy and it can be in your own handwriting if legible or typed out. Don’t make it too hard. Make a list of the bad credit marks or wrong information that you want to dispute. Make sure to keep it as short as possible and don’t add any fluff. Get the facts as you know them. If you have any documentation to include to ‘back you up’ then add this or include copies with your dispute letter.

When the credit bureau gets your letter they will do an investigation and will either verify the item in question and remove or fix it – or they will be unable to verify the negative credit information to remove it.

If they notify you that they are unable to verify any negative credit mark thus not removing it, then you can still dispute it by sending another letter asking how they arrived at their decision. This is called a ‘method of verification’ or sometimes ‘procedural request’. If the dispute is regarding a creditor the credit reporting bureau and the creditor must both provide you with adequate proof of their decision. Otherwise they are required by law to remove the negative credit mark from your credit history.

3. How to get positive credit marks on your credit report. This is simple to do over a period of a few months to start building a positive credit history. Get department store and/or gas credit cards and use them. Pay them off on time. Make note that these usually come with higher interest rates so compare rates first. Pay a little more than you owe and pay a little early. Paying online ensures that your payment arrives and is not lost in the mail.

Keep a bill calendar and write on it when payments are due and another notation on the calendar a few days before so that you make the payment online early. If you wait till the last minute, the Web site may be down for maintenance or their may be other network issues. But in any event make sure to make the payment before it’s due. Try to get an installment type of loan or automobile loan through your bank or credit union.

Be aware that if you try to buy a car or other vehicle that the car dealer will contact several lenders to get the best interest rate and EACH one of these will contribute a mark to your credit report. This can affect your credit score, also called FICO. So try to get a pre-approved loan before you head to an auto dealer. If you can do this over a few months you will build up a recent and good credit history fast. No credit repair service will be able to build up this positive history for you.

For additional help removing or erasing negative credit you can easily get a good credit repair guide that will help you read and dispute the report and will cost pennies as opposed to a credit repair service which can cost you significantly. And a service can’t do it as well as you can or add positive credit marks to your credit history. Sit down now if you already have the credit report right and do a quick letter before you start dwelling on it. You can do it! And YOU can do the best job. The faster you take action the sooner you’ll see a turnaround.



Julio

Bart Newman asked:




How to Get My Credit Report?

Before you even file a claim for your credit report, make sure you have gathered all financial records and other identification that will serve as proof of your identity. Then, you can evaluate the various means at which you can reach the credit reporting agencies, whether it through the web, by phone, or through mail.

How to Get My Credit Report for free?

If you plan to seek a copy of your annual credit report via the web, there are websites that offer you access to these reports for free. You can follow the indicated steps to go over this procedure and make sure that you have input the correct information to ensure that the process is successful. Once the process is completed, you can access this report online and have it printed out so you have a hard copy.

You can also check online or the respective reporting agencies for their contact numbers so you can file request for your own copy via phone. As with the above step, you need to provide basic and financial information to prove your identity. After your initial phone request, expect your copy to arrive by mail within 4 to 5 weeks.

And finally, you can download the request form you got online and print it out for you to fill up with required information. Then, mail it to the respective mailing address. Leave up to at least 15 days of processing, such that you can expect your credit report copy to arrive within 4-5 weeks.

What To Do After I Get My Credit Report?

Once you have the information through your report, the next step is to find ways to improve your credit score, especially if you have a poor credit rating. Here are the steps in which you can improve on your score:

Securing your report copy from the 3 reporting agencies is your first step in making the necessary corrections. It will enable you to identify the areas in the history that you need to work on. Clean up credit by identifying errors in the report and addressing the issue right away to the bureau to ensure to update the information contained in your report or remove any false information. The information reflected on your report will greatly affect your chances of securing loans, so you have to improve your score. When you are already in a poor credit situation, the least you’d want to happen is to worsen your status. So, make sure to stop accumulating further debts until you have finished paying off previous debts and made up-to-date payments.

One should not stop at the question “How do I get my credit report?” But instead, you need to identify what use the report is for, what impact it could make in your financial standing, and how you can improve it.

Theodore