Getting an annual credit report has been likened to getting an annual
physical check-up. Some people may view it as something that can be put off for
later. It may have been an annoying inconvenience in the years past, but today’s
Internet technology has facilitated the process. It is as important to an
individual’s fiscal health as a physical exam is important to his or her
physical health. Also, as in a physical exam, getting a credit report can help
prevent bad things from happening (financially speaking) and if financial
problems already exist, viewing your credit report can prevent things from
worsening.
During the past years, an individual would have had to fork over $9 to get a
copy of his or her credit report. Today, however, consumers are entitled to get
a free copy of their annual credit report, thanks to a law passed by the United
States Congress in 2003: the Fair and Accurate Credit Transactions Act (FACTA).
Under this law, American citizens can avail of a copy of their credit report
every twelve months, gratis. All they have to do is log on to Annual Credit
Report, a web site made possible through the cooperation of the top three U.S.
credit bureaus: Experian, TransUnion, and Equifax. It is also possible to
request individual credit reports from these three agencies.
However, keep in mind that the content of credit reports from these agencies
may differ. For instance, a person’s TransUnion and Equifax credit report may
contain information about court accounts and late payments, while his or her
Experian report may reveal other information. All these pieces of information
are vital to a person’s fiscal health. Why is this so? Many people might not
realize it, but there are entities that use their credit report for reasons that
affect their everyday lives.
For instance, if you are applying for a mortgage, or if you want to
re-mortgage your property, you can be assured that your credit report is one of
the things that your potential creditor will consider. This information is also
pertinent when it comes to things such as your automobile insurance, home
insurance, and loans. It all boils down to a concept called creditworthiness.
Are you credit-worthy enough for financial institutions to lend you money or
underwrite your potential debt? Your credit report is one of the main factors in
helping financial institutions decide this, so it is worth your time and effort
to make sure that your credit report is in order; or if it is not, to take the
necessary steps towards credit repair.
Because even if you are certain of all your financial dealings, you might be
surprised to find inaccurate information in your annual credit report. Although
such occurrences are not that frequent, they can happen nevertheless. Sometimes
payments you have made or debts you have cancelled may not be reflected in your
credit report, and this will negatively affect loans or other financial dealings
for which you are applying. Did you know that interests on your car loan or
mortgage can be affected by negative information in your credit statistics? This
is one major reason why you should have the most updated copy of your credit
report – any such inaccuracies will be noticed and you can take the necessary
steps to correct these mistakes as early as possible.
Your credit report is another exceptional indicator of whether you’ve been a
victim of identity theft. Think about it: you may have given personal
information such as your Social Security number to an e-mail asking for that
information or to a web site requiring that you give that sort of data first
before being allowed to proceed with the site’s other services. The fact is, an
unauthorized person who has your Social Security number and other personal
information can get loans or credit cards under your name. Fraudsters who do
this usually go on a spending spree, racking up debts with you as the debtor.
Meanwhile, you go about on your daily business, innocent of the fact that your
credit reputation is being ruined (for, because you don’t know about your
alleged “debts,” you don’t take steps to pay them).
Then the time comes when you need financial services of your own: a mortgage
refinancing or the renewal of your car insurance, and it’s only then that you
see from your credit report that you’ve been a victim of identity theft.
Although such situations are remediable, they can take a lot of time and hard
work, not to mention the additional payments needed for credit repair
purposes.
Getting an annual credit report, therefore, is essential to helping ensure
one’s financial well-being. It can help you fix inaccurate credit data as early
as possible to your advantage. And best of all, this credit repair tool is
free!