Personal Finance

Free Credit Report

At some point, you are likely going to want to make a major purchase that will require you to be in good credit standing. Whether you want to buy a house, a car, or a boat, in order to get a secured loan with a good interest rate, you will have to be in good standing with your creditors or others that you owe money. It’s easy to find out what your credit report looks like, because everyone is entitled to a free credit report. A free credit report will tell you a multitude of information, and give you an idea of where you stand with potential lenders.

Bad credit isn't just detrimental to your wallet; it can keep you from gaining employment or even renting an apartment. When you order a credit report, you will not only be able to see any past loans or credit accounts you have opened, but you will also be able to see whether they were paid on time, paid in full, or if they are closed or still open. You will also see personal information, such as current and past addresses, phone, numbers, and employers. This is all information that is seen by potential employers, creditors, or landlords when they run a credit check on you.

With that in mind, it is important to look for any accounts or personal information on your personal credit report that does not belong to you. If you do see an account that you did not open, or an address at which you did not live, it is vital that you contact the credit agency to get the information removed from your credit report. Identity theft is serious, and can cause irreparable damage to your credit and finances, along with preventing you from getting a job, apartment, or financing for anything in the future. Free credit reports are available to everyone from three credit companies: Experian, Equifax, and TransUnion.

The best thing to do is to visit AnnualCreditReport.com, where you can fill in some basic information, and have instant access to all three credit reports. Going through the central agency is the only way to guarantee seeing your credit reports instantly and for free. Viewing the different reports is important, because while they will likely all have the same information, there could be slight differences in accounts or personal information.

Your basic credit report is free to you. But if you want to know your credit score, you can pay $7.95 to get the magic number. Your credit score is the number, ranging from 300 to 850, that determines how dependable and trustworthy you are to a potential lender or creditor. This number is determined by taking statistical information from your credit report. That is why errors on your credit report should never be ignored!

In the world of buying and borrowing, you are at the mercy of your credit rating and report. You should always pay your bills on time, and get a copy of your free credit report at least once a year to check for any errors or misinformation. Get mistakes corrected right away, and clean the slate. Then, when you want or need to get financing, your will have no problems getting the amount you need, at a reasonable interest rate!