Guide to Credit Reports and Scores
- projectdoneangie
- May 7, 2012
- 2 min read
Have you looked at your credit report recently? Are you overwhelmed with credit issues due to a low score? There is an online resource for helping us better understand what a credit report means and how to use it and improve it if needed. The Federal Reserve has an online guide with the basic information in an easy to read guide at: http://www.federalreserve.gov/creditreports/
Your credit history is important to a lot of people: mortgage lenders, banks, utility companies, prospective employers, and more. So it’s especially important that you understand your credit report, credit score, and the companies that compile that information, credit bureaus. This site–maintained by the Federal Reserve Board–provides answers to some of the most common, and most important, questions about credit.
The guide includes the basics:
What is a credit score?
How is a credit report used and why is it important to protect our credit history?
Who uses credit report information?
How long does negative information stay on the report?
What to do if there are errors on the report.
We can get a free annual credit report from all three credit bureaus at: http://annualcreditreport.com You should get all three reports at once the first time so that you can become familiar with the layout of the information. Then, it would be wise to spread the reports out by ordering one report quarterly from only one of the credit bureaus and save the $9.95 order fee. Review your history and be on the lookout for errors on an regular basis.
Lenders are required to tell consumers when negative information on their credit report will translate to higher rates and fees for mortgages, credit cards, and other loans. If you are turned down for credit, ask the lender for a copy of your credit report. They are responsible for getting this to you at no cost but you have to ask within 60 days. This is another way to get a credit report for free.
We are still required to pay a fee for our credit score. There are online sites like http://creditsesame.com that can help. Enter your credit information and your score is determined. Credit Sesame sends a monthly email letting you know if your score has changed as well as tips to improve your current score.
Take charge of your financial future and be in control of what your credit history says about you. We are not our credit score but the number dictates our financial leverage. Reading and understanding your credit report takes a little time and patience so start now!
I am here to help and answer any questions that you have. You can subscribe to my blog for future information or send me a message on my Facebook page at http://Facebook.com/ProjectDone which I will gladly answer.
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