1. Every person has three credit reports, and they are all slightly different. The first lesson relates Credit 101 is to understand that you do not just have a credit report, you have three of them. There are three credit bureaus that creditors, such as credit card issuers or your auto loan provider, report: Equifax, Experian and TransUnion. Most creditors do not report to all three credit bureaus, which means that an item that appears on your Equifax credit report may not appear on the other two. That is why it is necessary to check all three reports, rather than one, because not to do so could cause you to miss items that were reported incorrectly. If you have been turned down for a loan or credit card, but do not understand why, make sure you look at all three credit reports -. You just might be missing something important
2. You can view your reports for free once a year. It might come as a surprise to some, but by law, every person in the United States has the right to see their credit reports from each of the three bureaus once a year (every 12 months). Thanks to the Fair Credit Reporting Act, which provides citizens a number of rights relating to their credit reports and credit bureaus. To request free copies, visit AnnualCreditReport.com, which is run by the government and sponsored by the three offices. Remember, you can only view your reports again, so it's a good idea to have access to a printer so you can save each report for future reference. Note that you have to pay extra to see each of your credit scores.
3. It is useful to keep an eye on all your credit reports throughout the year. All consumers absolutely must print and view their credit reports every 12 months, but in a world where identity theft is a problem and data more and more violations of sensitive information leaks all time, which is really not enough. The ability to access your credit reports on a regular basis is priceless, if you have great credit and plan to keep it that way or are working to rebuild yours after a financial misstep or two. Fortunately, credit monitoring services - like Identity Guard, which offers plans for individuals, couples and families - not only provide regular access to your credit reports, but also allow you to see your credit score and keep you updated with timely alerts whenever a change in your reports or scores is detected. In addition, many help you when it comes to contacting the credit bureaus if you need to file a claim. You can read reviews of the best credit monitoring services on our website to decide which could be your best option.
4. You do not need to be an expert to decipher your credit reports. Once you have copies of your credit reports in your hands (or you watch them online), you might feel a little overwhelmed trying to analyze what the different sections and the labels mean. Fortunately, your credit reports can be broken fairly easily. In the end, all credit reports can be divided into four types of information: credentials credit history public documents and investigations . You can see an example of how this configuration works by watching this sample credit report on the website of Experian. Your TransUnion and Equifax credit reports may differ somewhat, but in general, all credit reports follow the same structure, making it fairly easy to identify what information they share - and where they diverge . If you choose to sign up for a credit monitoring service, it will result in each credit report in an easy to read, which may be better for you to understand.
Most credit reports will tell you which items are considered potentially negative, and which are considered positive. Pay attention especially to the negative elements, since these are those that can bring down your credit score and cause problems. If you do not recognize something, you are in the right to request more information. AnnualCreditReport.com a page with information on what to look for to determine if the elements of your reports are legitimate or not.
5. items on your reports will not be there forever. If you are concerned about an account that went into collections or defaulted loan, the good news is, it will not be there forever. The way it breaks down, according to Equifax, is the following: unpaid accounts, history of late payments, collection accounts, etc. will remain on your credit reports for seven years, so that the accounts will remain marked as paid up to 10 years. There are some exceptions, and some states have laws that could affect the duration remains something on your reports, it is best to do your research if there is something you are unsure. The reason why the positive elements remain longer than the negative elements is fairly obvious - it gives consumers the chance to rebuild after a negative impact on their credit because good credit survive bad. Of course, if you intend to try to rebuild your credit, it is best to be diligent in paying your debts and keep your account in good standing in order not to add seven years on what is already there.
6. You can dispute incorrect items on your credit reports. Many people see ads for credit repair services and mistakenly think these services are able to magically erase negative credit reports of their inputs, no matter what the debt. Unfortunately, if an entry on your credit report is legitimate, even if you reach a settlement or pay the debt in full, you will still have to wait outside before it is removed from your credit reports. There is no magic eraser to a credit report riddled derogatory items except for the time and good behavior credit in the meantime.
However, if you notice something on your credit reports that does not add - a credit card that you know that you take on a mortgage account or for a home unless you can - you the right and the ability to file a chat with the credit bureau (or offices, as applicable) in question. The bureau must investigate, and if it determines that you are in the right, the item will be removed from your credit report. This can be a lengthy process, which explains why credit repair services can be useful, because they make legal action on your behalf. That said, there is not much of a credit repair service offers you can not do yourself (if you're willing to put in the time), so it is advisable to take advantage of these services if you have long histories of full credit mistakes to unravel.
Understanding your credit reports may feel a bit like learning a foreign language, but once you know the basics, you are well on your way to be in control of your financial situation . Follow our credit monitoring blog to learn other ways to improve your credit reports and keep an eye on your credit reports.
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