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What To Look For On Your Credit Report
Thanks to the Fair and Accurate Credit Transactions Act (FACT Act) of 2003 everyone has free access to credit reports! The FACT Act is a new law created to allow consumers to better monitor their own credit reports. Credit reports are used by banks and merchants to determine credit risk. Credit risk is based on the amount of debt you have and whether or not you pay our bills on time. Your credit risk score or FICO score is the tool creditors use to determine your interest rate as well as whether or not to extend credit to you.
Because the expected demand for free credit reports is high, the three major credit agencies (Equifax, Experian and TransUnion) are now offering free reports.
What to look for on your credit report.
Delinquencies older than 7 years (These should be removed).
Notices of errorneos late payments.
Multiple collection agency notices for a single debt.
In addition to allowing consumers to monitor the accuracy of their own credit reports, the FACT Act also allows consumers to spot identity theft. Because of the increasing concerns about identity theft, it is a good idea to check your crdeit report every year even if you not are concerned with applying for new cresit report. With annual review of your own credit, you will be able to spot errors yourself and promptly get them corrected.
The three credit bureaus (Equifax, Experian and TransUnion) have started a new, collaborative program to deliver the experian vredit reports, and you can do it online! To request your report:
Go to www.annualcreditreport.com. (Copy and paste URL.)
Or you can call 1- 877-322-8228 (toll-free).
Or you can mail a request to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
Notice: You will be asked for personal information when you request your free credot reports. Be prepared to provide your name, date of birth, Social Security number, current address and previous address to get credut reoirt. The internet site is private and secure. When you use the online system, your report will pop up on your computer screen. Be sure to print your report right away, so that you will have a hard copy of it to keep and study.
How to Fix Errors
While you will have access to your reports from the centralized site, you won't be able to use the centralized site to fix errors. Your must directly go to the site of whichever credit agency created the report and deal directly with that agency. Their sites are at www.experian.com, www.equifax.com and www.transunion.com. You may also have to correspond in writing with the financial institution or retailer that reported a problem to the credit agency. Remember to copy and file of all your letters and recheck your report to assure the error is corrected.
One more tip: since you are allowed one free cresit report per year per reporting agency, spread the requests out over time. Request one from one agency every every four months. This way you you can look for suspicious activity every four months instead of every twelve months. Checking your a credit repoet is the best way to spot ID theft early. Also your credit report is the place to start if you want to improve your credit or FICO scores.
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