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Free Annual Credit history - Three reasons to Get One

Managing your credit report is an extremely important step in making money in your lifetime. A good bit of it is based on your money and credit correctly. Another part though is when it gets reported too.

Everyone in the US has a credit history. For many people it's blank. They do not possess a record yet of how they handle history. For some people it could fill a large amount of encyclopedias. Now the question becomes is your credit history accurate?

The federal government requires the major credit bureaus use a copy of your credit rating free of charge annually. That is why you will sometimes hear people discuss the free annual credit report.

It isn't just like your credit rating though. You should understand that your credit rating is still difficult to determine as each company calculates them differently.

The three major credit agencies are Experian, Equifax and Transunion. Think of them as giant record keepers. They get reports from credit card issuers, automotive loans, mortgage loans, along with other areas. Its not all company reports to all three. Some will only report your information to one or a couple of them.

annual free credit report

There are three major causes to obtain a copy of your free annual credit history. We'll discuss each of them in more detail below.

Inaccuracies Identify Theft Forgotten Lines of credit

Inaccuracies can riddle your credit score. The systems involved with collecting this post is not perfect. It is very entirely possible that details are reported to the company incorrectly. For example your credit card company can are convinced that you had a card go into collections. It can happen from a worker mistyping information into a computer program.

It is also possible that someone else's credit has been sent beneath your identity. I have a friend whose name is the same as her sister in law. They share first and last names but have different middle names. When she went to apply for a loan on a home, they were very confused by her credit history. They lived in various states, had different jobs, and different financial histories. The loan bureaus had mixed them up in places.

It took some time to obtain everything corrected so she could purchase her home. Getting a copy will help you to find these errors quickly and obtain them corrected.

Identify Theft is really a growing problem in the world. Obtaining a copy of the credit rating makes it possible for you to find out if a person has stolen your individual information. The credit bureaus can have any credit that's opened in your name. By checking it regularly you are able to prevent this. You may also request they put a freeze on your credit. This prevents anyone from opening credit in your name. Just be sure you remove it when you get ready to apply for credit.

annual free credit report

Forgotten lines of credit might not sound like a problem but they can be. It is not smart to have lines of credit floating around. I found a couple of store charge cards on my are convinced that I had completely forgotten about. I'd gotten them when I was much younger and establishing my credit.

I kept the loan lines but requested they be frozen. I did not want to take them off because they would impact my credit score. I also didn't want to leave them laying around in case someone got the data and started using them.