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Free Annual Credit Report - Three reasons to Get One

Managing your credit history is a very important step in creating wealth in your life. A good bit of it is according to your money and credit correctly. The other part though is when it gets reported too.

Everyone in the US includes a credit rating. For some people it is blank. They do not possess a record yet of how they handle history. For some people it could fill a sizable volume of encyclopedias. Now the question becomes is your credit rating accurate?

The US government requires the major credit agencies to provide a copy of your credit rating for free once a year. That's the reason you will often hear people talk about the free annual credit report.

It isn't the same as your credit rating though. It is important to understand that your credit rating continues to be difficult to determine as each company calculates them differently.

The three major credit bureaus are Experian, Equifax and Transunion. Think about them as giant record keepers. They get reports from credit card companies, auto loans, home loans, along with other areas. Its not all company reports to any or all three. Many will only report your information to one or a couple of them.

free annual credit report

You will find three major causes to get a copy of the free annual credit report. 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 possible that information is reported towards the company incorrectly. For example your credit card company can are convinced that you'd a card go into collections. It may happen from an employee mistyping information into a computer program.

It is also possible that someone else's credit is being sent under 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 obtain a loan on a home, they were very confused by her credit rating. They lived in various states, had different jobs, and various financial histories. The loan bureaus had mixed them up in places.

It took some time to get everything corrected so she could purchase her home. Obtaining a copy will help you to find these errors quickly and get 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 identify out if someone has stolen your personal information. The credit bureaus will show any credit that's opened in your name. By checking it regularly you are able to prevent this. You may also request that they put a freeze on your credit. This prevents anyone from opening credit inside your name. Just be sure you take it off when you are getting ready to make an application for credit.

annual free credit report

Forgotten credit lines might not appear to be a problem however they could be. It's not a good idea to have lines of credit going swimming. I discovered a couple of store charge cards on my report that I had completely forgotten about. I'd gotten them after i was much younger and establishing my credit.

I kept the loan lines but requested that they be frozen. I did not wish to take them off as they would impact my credit score. I additionally didn't wish to leave them scattered about just in case someone got the information and started using them.