Free Credit Report
If you are considering doing a no closing cost refinancing loan or any applying for any financial product it is really advisable that you get a free credit report and study it for errors and negative information regarding your credit history.
A free credit report will point you to potential credit problems in your credit history that could derail any credit application for credit cards, home loans, car loans or even home loan refinancing.
Free Credit Report-How to Get a Free Credit Report
A free credit report is available from a few sources and an annual free credit report is mandated by federal law.
- Some states require that the credit reporting agencies give consumers a free credit report every year. Check with your State to see if it requires a free credit report be made available to its citizens each year.
- Anyone can get a free credit report from each of the three major credit reporting agencies once each and every year. To get a free credit report from TransUnion, Equifax and Expedian go to free annual credit report dot com and follow the instructions on the website. Please note that the annual free credit report does not include your credit score. There is an extra charge if you wish to get your credit score.
- If you have applied for credit and have been turned down for credit reasons you are entitled to a free credit report within a 60 day period
- If you have been turned down for insurance and the reason stated for your insurance application being declined was credit related you are entitled to a free credit report within 60 days of your insurance application being declined.
- If you have had an employment application rejected for credit reasons you are entitled to a free credit report within 60 days.
Free Credit Report-Credit Score
A credit score should not be confused with a free credit report, a credit score is number between 300-850 which is computed by the fico formula taking into account your outstanding debt and your bill payment history. A credit score or fico score of723 is the the median FICO score in the USA. FICO scores below 600 are considered by lenders to be high risk or poor credit. A credit score or fico score of 620 is considered to be the dividing line between good and bad credit. 640 or above being good, 650 is in the average good range and above 690 to 720 is considered an excellent credit score.
Free Credit Report-Improve Credit Score
The best way to improve a credit score is to get a free credit report and study it for errors, omissions and negative data.
Free Credit Report-Errors
When you get your free credit report look for negative entries that are erroneous. If you find errors you have the legal right to ask the credit reporting bureau to investigate the negative entry and have it removed if they cannot validate its correctness. By having negative entries that are erroneous removed you will increase your credit score.
Free Credit Report-Omissions
It there are active accounts that are in good standing that are not reported on your free credit report you should take steps to either have the lender rep[ort your good payment record or ask the credit reporting bureau to include these accounts in your credit report.
Free Credit Report-Negative Entries
Scan your free credit report for negative entries that are correct and analyse if there is the possibility of rectifying some of them. If there are negative entries for small amounts of money you could contact the reporting creditor with a proposal to make a satisfactory payment and have the negative entry changed to read “paid satisfactorily”.
