In order to find out what your credit standing is, you need a Free Credit Report - no denying that. But the word FREE seems to get up my nose a bit. In order to, er, order you have to insert your Credit Card - daft, if the service is at No Cost! Yes, you do get a 30 day FREE trial of theirsystem, but Heaven forbid if you don't cancel before the 30 days are out. If you did forget then it's curtains and your Credit Balance will be bigger.This to me seems rather odd. And something that I find a little unfair. If people are checking their credit file then it is to get a very clear picture of their credit standing. And then they are offered the Score. This is the most essential element of Credit Analysis, but is that bit FREE - not on your debit card!Every time you make a credit application, the creditgrantor uses the information at hand to decide whether to grant you credit or not - in essence to approve or decline your application. This can only happen if a certain score is obtained, or higher. How do they 'the credit providers' arrive at this score, they're not telling.Now, don't get me wrong, the Credit Score is an essential tool to live with in this day and age. Especially for families caught in circumstances beyond their control like Hurricane Katrina or some other natural or business mishap. These people need to access funds fast but do the credit agencies have to make so much money in such horrid periods. Maybe I'm jaded after my exposure to such ruthless tactics. Maybe not'So back to the Score. Scores are based in essence on numerous variables. These are numbers in flux according to the consumers spending habits and can change on a day to day basis. This makes the 30 day FREE trial even more perplexing as you need to see the figures changing as you improve your credit and the agencies don't respond with much speed. Checkout CreditExpert to see how this system works. Do not forget to cancel once you have your reports.Some report / score optimisation specialists believe that a consumer can be more secure by simply being informed of being analysed that they can be high risk, and what they can do to prevent this. This tactic again promotes the Credit Reporting agencies and can have an unhealthy impact on the overall score. Anyway, to enable access to your score you have to pay extra and this again makes the UnfairFree Credit Report all the more obvious.Did you know that three figures in your Credit Score could help you save thousands in high-rates and monthly payments. Credit providers are using Scores almost exclusively to give consumers the green light. This affects Credit Cards, Lines of Credit, Loans and Mortgages. This is also a quick way to work out who to offer the low-rate loans to.All the information about you and your credit experiences such as payment profile, types of bank accounts, any late payments, accounts in default, outstanding debts, how long they've been outstanding is all collected together and held on the agencies servers ready to be accessed by another credit offerer. Consumers with high scores are the ones that get the better loans, credit cards and mortgages (some high scores can also result in lower insurance payments.)Anyone thinking of ordering their FREE Credit Report should be careful and be aware that their are possible risks. Consumers with a great or high score can find it all too easy to expand their lines of credit or store cards. The opposite is also true, so proceed with CARE.If you take out the Free Credit Report you don't have to buy any of the additional features, but just be aware that the Credit Score is the most important section - and this is NEVER FREE! Without it your report is in essence useless.With all this said, "How do you go about Improving your Credit Score?" First thing - this sounds crazy - get your Credit File. Regardless of whether you see it as Fair or Not, you need it. You need a complete breakdown of your history including: All credit reports Experian & Equifaxplus all credit scores.There is only Experian that will give you On Line Access in seconds but, for reasons only known to them, Equifaxwill only do the letter and delivery thing. Next, get theCredit Repair Letters from my site (they really are FREE)follow the steps and take the necessary action - it's that simple. You are minutes away from improving your Credit and getting those low-rate Mortgages and Loans.
The importance of getting your free credit report cannot be overemphasized. In the current economic climate, with such a strong squeeze on credit, everybody's credit rating is at risk, and even if you think you have a premium credit score, you might be in for an unpleasant shock. People are getting such shocks not only daily, but hourly throughout the USA.
However, before we discuss that, let's have a look at what a credit report is and what information it gives you. It contains four parts basically: your personal details, your credit history, public records appertaining to your financial stability and finally, inquiries made by third parties as to your credit record. While you might not understand the need for this information, they are carefully examined by potential lenders.
To put it in general terms, your credit report is a record of your credit history and your financial stability. It contains financial details such as mortgages, loans, mail order agreements, credit cards, banking facilities and so on, and includes your repayment history, any late payments, missed payments, defaults and so on. It also includes any details of credit or loan applications you have made, and whether any have been turned down.
If your credit report is bad, you will either not be offered credit or will have to pay a higher interest rate than those with a good credit report. In some cases you will be refused credit. Hence the importance of knowing what your credit record is like. The same is true of your credit score that lenders use to assess your credit-worthiness.
The implications of a bad credit report include you being refused a credit card application, a loan, a mortgage, a car loan and any other form of credit. You could even be refused a mail order agreement or even a car hire. That is not the end of it, because the same could apply to your partner and your children if they reside at the same address as you. When your kids look for a mortgage of their own before being married, or seek a loan for their first car, they could be refused because of your poor credit record.
That is fine if the record is correct, because although it is bad for you, at least it will have been deserved. However, it has been estimated that up to 90% of credit records are inaccurate, and that a large proportion of people are being wrongly refused credit. Not an entire 90%, obviously, but a lot of people are being unfairly refused credit, and that could be you or your kids. You won't know till you apply.
Why wait till then? Why not just get a credit report now, so that you know where you stand. It makes sense, and since it is free what are you waiting for? Did you know that anybody can see your credit report? In the USA, the Fair credit Reporting Act (FCRA) allows employers, creditors, landlords, insurers and any other business to have access to your credit report for purposes of credit, renting a home, employment or any other reason where your financial situation could be of interest.
These reports are available in the USA from three agencies: Experian, Equifax and TransUnion, and each has to provide you with a free copy of your credit report annually on request. Once you have a bad record on your report you have to wait 7 years to have it removed.
However, there are companies that help you to check up on your report and have any inaccurate data removed. You could easily have your next credit request refused due to inaccurate or false information. Identity theft or even mistaken identity is no longer uncommon. Nor is it uncommon for office staff to make typing errors and you to have something on your credit record that never occurred.
In today's economic climate your credit is the one thing you must do all that you can to protect, so make sure you implement your right to a free credit report. There are companies that can get your free report from all three agencies, and then check it with you to make sure that nothing is untoward. With 90% containing inaccurate information, that might be highly likely. If so they can help you to get these false records removed.
It's your credit, and it affects everybody living in your home. Get it checked out now with a free triple credit report. Also check up on your credit score at the same time.
Both Barry Smith & Peter Nisbet are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Barry Smith has sinced written about articles on various topics from Free Credit Report Score. Barry Smith is a contributing author to many Websites and is an acknowledged expert in the area of Credit Score Improvement. You can find him at