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Free Credit Report And Score - Why You Need Them Both
By: L. Sampson
You keep a record of how much money is in your checking account. Chances are,
you keep a running tally in the back of your check book and you balance that
with the statement the bank sends you each month. As important as it is to know
how much money you have available before you write a check, it is equally
important to know your credit score and what is on your credit report. Not
knowing these things could cost you money.
A credit score helps predict how credit worthy you are
Many factors go into determining your credit score including your bill-paying
history, the number of credit accounts you have, late payments, collection
actions, and outstanding debt. Once this information is compiled, statisticians
compare your information with other consumers and give you points for each
factor of your history that shows you to be a good credit risk. Your total
number of points are added up, giving you your credit score.
A credit report shows how credit worthy you have been
Simply put, a credit report is a tracking of all of your credit purchases and
payments compiled by a credit bureau and made available to any agency that is
trying to determine whether or not to give you a line of credit or loan you
money. The report lists every account you have open, even if it contains a zero
balance. Information published on the report stays on it for 7 to 10 years.
Everyone should know their credit score and have a copy of their credit report
If you are getting ready to apply for a home loan, you should know what is on
your credit report before your lender ever sees it. If there is an inaccuracy,
you will have a chance to have it fixed, so it won’t spoil your chance of
getting the loan. Having your report in hand will also give you a chance to
close any old accounts that you no longer use. Having too many open accounts can
influence the amount of credit you are eligible for to receive.
Everyone is entitled to a free credit report
The law requires each of the three credit bureaus to provide you with a free
credit report each year. You may take them all at once or spread them out, but
it is important to obtain them and make sure that the information of your credit
report is accurate.
About the Author:
Visit www.abcloanguide.com/freecreditreport.shtml for a list of credit
report agencies. View our recommended sources for a free online credit report. |