Credit Report - What, Why, and How

2007-03-08 10:33:40

( Financial )



A credit report is an essential financial document. It details your personal information such as your residence, how you pay your bills, and even the frequency of your credit report orders. You will need your copy of credit report for various reasons—to apply for a credit card, when getting a loan, or when buying a property such as a house or a vehicle. Occasionally, you may also want to get your copy of credit report to check it for inaccuracies and updatedness. Reviewing your report will also shield you against identity theft.

The Fair Credit Reporting Act (FCRA) made it a requirement for credit bureaus to give every one a free credit report annually. You may secure a copy of your free credit report online in the centralized website www.annualcreditreport.com, through the toll-free number, or by mailing the request form downloadable from www.ftc.gov/credit.

When requesting your copy of credit report, you will need to provide information about yourself. You will have to give your name, address, Social Security number, birthday, and things that should verify your accounts. When you order online, you gain access to your free copy of your credit report immediately. It will be advisable to print your report as it will be kept online for only 30 days from the time the request was made.

Orders through the toll-free number or mail normally take a longer time—within 15 days from the receipt of your call or mailed request form. The processing may also be slowed down by the volume of requests at a given time.

Free credit reports are given only once every year. However, you may get extra free copies of your credit report gratis if you have been declined for credit or employment, charged higher rates and fees on the basis of a credit report, or if you have been a victim of fraud. To get your free extra copy, you will have to mail a proof of turndown or a letter stating the circumstances of fraud against you with a request form.

If you do not qualify for extra free copies of your credit report, you may purchase from the same order points. Your credit score is not yet included in your credit report. Getting credit scores have additional fees. They may be ordered individually with the free copy of credit report or may be packaged with a paid extra copy of credit report. At some point, you may also need to order an expense report. This is requested by filling out an expense report form. Many companies with expense report software services can help you with this.

When you receive your credit report, examine it carefully and report inaccuracies to the bureau concerned right away. Remember, when you maintain a healthy credit history, your credit report will benefit you and your financial future.


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