What Is A Credit Report and Why is it crucial
Monitoring your credit is one of the easiest and most effective ways of protecting your credit against errors and identity theft. Your credit score is one of the most important components of your financial profile it is calculated based on the information in your credit report. Credit scores allow lenders to quickly make on-the-spot credit decisions based on a 3-digit number that sums up your credit worthiness. There are many credit scoring models in use today; all are designed to rate your likelihood to repay your debts. While most of us have never even seen ours, our know what FICO or credit score is. By learning to interpret your credit report will help you make critical financial decisions, it can also help you realize just what it is that is holding you from getting the credit that you may need. You may request your free credit report online, request your report by phone or request your report through the mail. Free credit reports requested online are viewable immediately upon authentication of identity. Free credit reports requested by phone or mail will be processed within 15 days of request.
What is in your Credit Report?
Your credit report will contain your whole legal name, your social security number, earlier and current addresses, date of birth, and current and past employers. This information has been obtained from any old credit applications you have filled out. It will also include selective information about any financial accounts you have now or have had in the past. This will include any loans, credit cards and their credit limits, monthly bills, and so on. It will also include the names of any other persons that may be responsible for payment on these accounts. Particular comments or items can be very harmful to a person’s credit history. This is why it’s very significant to check your credit report at least twice a year to make sure that your report is free from errors and bad notes. Any financial situations that you have been engaged in that are public record will also be included. This means that judgements, charge-offs, debt collections, foreclosure,tax liens, bankruptcies, overdue child support, etc., will also register up on this report. Please note a derogatory note can remain in your report for 7 - 15 years and send a negative impression to prospective lenders. Inquiries are also seen on your credit report. Anytime you apply for a loan, credit card, or anything that calls for an institution to call for a copy of your credit report, it will be noted.
What Is a FICO Credit Score?
Fundamentally your credit score is based on a mathematical equation that measures all the selective information on your credit report. The end result is called your FICO Score. FICO stands for fair Isaac, and Company, the organization that evolved the scoring mechanism. This score is what will be employed by companies to make up one's mind whether you are a safe financial risk or not. In order to even have a FICO score, you must have at least one open account on your credit report and that account needs to have been open for at least six months. Your FICO score is determined by your financial history. Serious debts past 30 days, consistent late payments on monthly bills, and any collection action that has been brought against you will influence what your score will be. Your credit score will influence not only the conclusion to give you the loan or credit card, but also the amount of interest to bind to the line of credit. The higher your credit score, the lower your interest rate and vice versa.
Your payment history is the main determining factor of your FICO credit score, information on specific types of accounts (credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc.) How many past due items and length past due and amounts on past due accounts compared to number of accounts paid as agreed. Followed by amounts you owe as how many open accounts with balances in proportion to total credit limits. The length of your credit history meaning how long has it been since you opened the account and the time since last account activity. Is the credit considered new credit for instance, how many recently opened accounts and inquiries. Compared to the length of time the new accounts and inquiries were made on your account. Finally the different types of credit accounts being used credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.
myFICO - Check Your FICO Credit Score and Credit Report Online
myFICO® is the consumer division of Fair Isaac, the company that invented the FICO® credit risk score that lenders use. Starting in the 1960s, Fair Isaac sparked a revolution by pioneering credit risk scoring for the financial services industry. This new approach to lending enabled financial institutions to improve their business performance and expand consumers’ access to credit.
Today Fair Isaac’s FICO® score is widely recognized as the industry standard for lenders. Get the score that lenders use most, from the company that invented it. myFICO provides you immediate access to your FICO score and credit report online.
www.myfico.com
Equifax - Credit Reports, Credit Scores & Identity Theft Protection
Equifax empowers businesses and consumers with information they can trust. With a strong heritage of innovation and leadership, we leverage our unique data, advanced analytics and proprietary technology to enrich the performance of businesses and the lives of consumers. Equifax.com – Get your Free Credit report and credit score from the source. Protect your Identity with ID Patrol and Pay Down My Debt faster with DebtWise.
www.equifax.com
Experian - Credit Report, credit score and credit check
Experian® is the leading global information services company, providing data and analytical tools to clients in more than 65 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft. As a top credit reporting agency, we are dedicated to helping people get their credit reports, find out their credit scores, prevent identity theft
www.experian.com
TransUnion - Check Your Credit Report and Credit Score Online
TransUnion is a global leader in credit and information management. For more than 30 years, we have worked with businesses and consumers to gather, analyze and deliver the critical information needed to build strong economies throughout the world. The result? Businesses can better manage risk and customer relationships. And consumers can better understand and manage credit so they can achieve their financial goals. Our dedicated associates support more than 50,000 customers on five continents and more than 500 million consumers worldwide. View your credit report and credit score online at TransUnion.com. You can also dispute an item in your credit report online, protect yourself from identity
www.transunion.com