Credit Card Help: Credit Reports And Credit Scores

These seven basic steps to improving your credit score take time and aren't all easy, but once you do them, your score is guaranteed to rise. Think you know credit reports, scores, They're all over the news, but do you know how these important things work, Let's find out with these 10 questions.

You may pay more or less for a service, or be denied altogether, depending on what's in your report. If you are applying for a loan, your interest rate is determined by what's in your report. Lenders and service providers want to know if you can be trusted with additional debt, if you will pay them on time and whether or not you are responsible with your finances. Who Creates Credit Reports,

There are three major credit bureaus in the United States. These are Equifax, Experian and TransUnion. Your financial transactions are usually reported to all three bureaus. However, it's important to check your credit report with each agency to make sure your information is correct. In addition to recording your credit history, these bureaus use your information to determine your FICO (Fair, Isaac and Company) score.

While your score will vary depending on agency, credit scores range from 300 to 850, with 850 being a perfect score. How Often Are Reports Updated, Your credit report may be updated daily, weekly or monthly, depending on the number of accounts you have and when those accounts are reported.

For example, if you only have one account and you are never late on any bills, your report will be updated every month. However, if you have many accounts and delinquencies, your credit report could be updated every day. If your credit report has the wrong information, it is up to you to report it to the appropriate bureau. While the credit reporting agencies have a responsibility to report correct information, you do too.

The Federal Fair Credit Reporting Act (FCRA) helps protect the accuracy and privacy of your information and encourages the bureaus to take action quickly when there is a dispute. If you find information that is not corrected, follow this two-step process to have it corrected. Write the credit reporting agency and tell them what is inaccurate.

The agencies have a responsibility to investigate your dispute within 30 days after receiving your request. The Federal Trade Commission has a sample letter for you to use when you find an error. Be sure to send copies (never originals) of all supporting material with your letter. Write directly to the creditor or other provider that sent in the inaccurate information. Like your letter to the reporting agency, you will want to include copies of all relevant information, along with your dispute letter.

Remember: Many times, creditors have specific mailing addresses for credit disputes. When writing, be sure to find the correct address. You can use the same sample letter as the one above. How Often Should I Review My Credit Report, Your credit report has the potential to change on a daily basis.

It is important to review your report often to check for errors as well as for activity that could indicate identity fraud. Unexplained account activity, inquiries or other transactions could indicate fraudulent activity. If you see suspicious activity, contact the credit bureaus immediately. They can take precautions that can help protect your credit. Visit our ID Theft page for more information on keeping your identity safe.

How do I get my free credit report and score from each bureau, However, this site doesn't provide credit scores, or more specifically FICO® Scores. Also, be cautious of other web sites that offer free credit reports. Many of them are only free for a short period of time and then you get charged.

Always read the fine print before buying a credit product that you may not need. The contents of your free credit report will change as your lenders report updated information to the credit reporting agencies. If you’re planning a major purchase, or are working actively to improve your FICO Score, you should check your credit report more than once a year. Many web sites offer generic credit scores that are not ones that lenders use. If you're planning on making a major purchase, you probably want to check your FICO Score and not just any credit score.

If you really want to be sure that you are seeing the same information that your lender is judging you by, then ask the lender which score they are using and then purchase that exact score, or set of scores. For example, it's typical for a mortgage lender to check all three FICO scores when evaluating you for a loan. However, some auto lenders may only use one FICO Score to qualify you for an auto loan. Make sure you're seeing the credit scores that your lender is using to evaluate you!

Can you trust providers of “free” credit reports and scores, Are providers of free credit reports and scores trustworthy, Some providers of free credit reports or free credit scores are legitimate. One way to get free credit reports is to apply for credit. Companies like Discover offer free credit reports to card applicants. And the Discover FICO score is more commonly used than some other scores like Vantage.

Free credit reports are available all over the Internet, but did you ever wonder if they’re really free, And no less important, are they any good when it comes to mortgage financing, We live in a data-driven economy. Every site you visit, every link you click, is recorded somewhere. Your profile and mine include thousands of data points, little hints regarding what we like and don’t like, what we might buy and which political candidates we like or not.

Credit reports are part of the data economy. They reflect how you spend your money and how you use credit. Your credit score is derived from credit report information. There are three basic ways to get free credit reports. The offer of a free credit report might be tied to the sale of other products and services.