A credit report is a detailed report prepared by a credit bureau that contains a person’s credit history and ‘creditworthiness’. It contains the information of how a person handles his or her debts, such as how much debts does this person have, how the debt and bills are paid, etc. These information are used by a lender in determining whether a person is qualified for other loan applications. The report includes: personal data, SSN, history of employment, summary of credit card history, account information in details, number of inquiries made into the owner’s account, etc.
When Do You Have The Right To A Free Copy Of Your Credit Report
According to the federal law, a person is entitled to receive his or her credit report for free once every 12 months from each of the three nationwide a credit reporting companies which are: Equifax, Experian and TransUnion. Once you do financial business with different companies, they will send your debt information to one or maybe all of the three companies mentioned and the credit reporting company will be the one in charge of updating your account or credit report.
How To Get A Free Copy Of Your Credit Report
A credit report can be ordered online from annualcreditreport.com; this is the only authorized and centralized website for free credit reports. The annualcreditreport.com is granted to credit card users by the Fair and Accurate Credit Transactions Act (FACTA). This is the only place where you can get free credit report without any obligation. You just have to give few basic information such as your name, address, social security number, and the date of birth for identity verification.
Here Is A Step By Step Process Of Getting A Free Copy Of Your Credit Report:
- Fill out a form completely and honestly.
- Pick out the report you want (choose from the three credit reporting companies where your report will come from)
- Before you can finally get your credit report, you will need to answer a few questions. These questions are meant to be tough and quite hard because the company just wants to make sure that nobody else but you can get your credit information.
- Once you answer all the questions successfully, you will be able to get your credit report and you can print it. You can look at it later on.
Importance Of Getting A Free Copy Of Your Credit Report
This is the two most important reasons why you should take advantage of being able to get a free credit report even though you can only get it once every 12 months.
- This prevents you from identity thefts because you can review your credit report and see suspicious transactions and you can report it immediately to authorities.
- To check for errors especially when you are planning to apply for a new loan.