How to obtain a copy of your individual free credit report
Credit reports contain information about an individual's financial background including loan history, credit card accounts, employment history, and legal situations. They provide the information that lenders use to determine the viability of providing or loaning money to people. This includes all types of loans, including mortgages, home equity, auto, and home equity lines of credit or HELOC.
Important facts included in an individual's credit report can influence the interest rate and terms that are offered with specific loans. Additionally, this information can impact the amount of the loan or money that they will be approved to borrow. The information included on credit reports can eliminate the possibility of obtaining any type of loan at all.
Each credit report, also known as a credit history, includes a credit score that reflects the type of credit a person has. The higher the credit score is, the better the individual's credit rating. Likewise, the higher the credit score is, the better the individual's chances for obtaining a loan or new credit card account.
Credit reports are compiled by agencies known as credit bureaus. Each credit bureau has its own formula for calculating a person's score. Therefore, the scores vary from one credit bureau to another.
Through the FCRA or Fair Credit Reporting Act, consumers may apply for one free copy of their individual credit report from each one of the three major credit bureaus once every year. These three bureaus, Trans Union, Experian, and Equifax, operate throughout the country.
Consumers can visit the website at www.annualcreditreport.com in order to apply for their free credit report. Additionally, various other credit bureaus will provide a copy for a small fee. Moreover, it is possible to use a credit monitoring service that will provide a copy of the report in addition to monitoring the activity on your credit accounts.