As a consumer seeking credit-based financial products or services, you should give yourself every advantage. Virtually all loan grantors utilize your credit report contents to determine whether – and on what terms – they will extend credit to you.
What does a credit score report contain?
In addition to general personal data such as your address, employer, etc., the main component of your report is debt repayment history. Public record entries such as judgments, liens, and bankruptcies are also recorded. All prior inquiries into your history usually appear in your report, as well.
Why do I need to get a free credit report?
Not only is your credit report used by credit grantors, but prospective landlord, insurers, and employers increasingly use your credit report in their decision-making. You need to know the specific information your credit file contains; inaccurate derogatory data can cause unfair denial of employment, insurance, housing, and credit.
What factors affect my credit report?
The primary factor is your history of debt repayment. If you have a history of defaults or delinquencies, you will be perceived as a poor risk. If you have faithfully met all credit obligations, any outstanding judgments or liens will still have significant negative impact. Even without either of these types of derogatory entries, your credit score report can convey a negative impression if you have excessive outstanding obligations or too many recent inquiries into your credit history.
How can I get a free credit report?
By Federal law, you are entitled to one free copy per year. The law does not entitle you to free disclosure of your credit scores, however. Your credit score is a three-digit numerical value that provides a “snapshot” of your overall creditworthiness. Credit scores are increasingly relied upon by credit grantors who use automated processes whereby your request for credit or other services is evaluated entirely by computer.
The law does not mandate ongoing notification of significant changes in your credit score report, or continuous monitoring of its contents by you. These are critical functions that you should perform regularly. If you get a free credit score analysis via one of the online subscription-based credit report providers, you can enjoy the distinct advantages of these extra features. Such services also facilitate easy removal of derogatory information by providing platforms by which you may dispute such items. Moreover, their services include individualized consultation and advice about how to improve your particular credit profile.
Hank Warner writes about cash advances and tips on ways to acquire credit reports on the Internet. Hank is currently a senior financial marketing analyst who specializes in payday loans, cash advances and online credit score reports. If you need information on these topics as well as any other fast cash loan programs, Hank’s articles do a great job of educating consumers.