It's very important to have good credit . It's equally important for you to check your credit so that you can check for any mistakes made on it or to double check any oversight that credit bureaus might have committed.
If you've ever applied for a credit card, a personal loan, or insurance, there's a file about you. This file is known as your credit report; it's also called a credit file disclosure. It is full of information on where you live, how you pay your bills, and whether you've been sued or arrested, or have filed for bankruptcy. You cannot escape this information, cannot have it altered for a price, and like a shadow follows you whatever you do. You apply for a home loan or you plan to buy that 32" LCD television, how you take care of your credit impacts those buys.
This credit file is maintained by consumer reporting companies - TransUnion, Experian, Equifax. The information there are provided by these consumer reporting companies in a consumer report about you to a third party, such as a lender. A credit file disclosure also includes a record of everyone who has received a consumer report about you from the consumer reporting company within a certain period of time ("inquiries"). The credit file disclosure includes certain information that is not included in a consumer report about you to a third party, such as the inquiries of companies for preapproved offers of credit or insurance and account reviews, and any medical account information which is suppressed for third party users of consumer reports. Remember that by law, they are obligated to provide you with a free annual credit report.
Here are the toll-free phone numbers of the three major credit reporting agencies where you can get a free annual credit report:
These consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses with a legitimate need for it. They use the information to evaluate your applications for credit, insurance, employment, or a lease. It's good business for them and they make millions of dollars off those information.
On the other hand, newspapers, radio, TV, and the Internet are filled with ads for companies and services that promise to erase accurate negative information in your credit report in exchange for a fee. The scam artists who run these ads not only don't deliver — they can't deliver. Only time, a deliberate effort, and a plan to repay your bills will allow you to improve credit score as it's detailed in your credit report. For some quick bucks for them, they promise you the sky and since you don't take good care of your credit, you are vulnerable.
More Free Annual Credit Report Info
A credit score is commonly called a FICO score. They range from a low of 300 (really bad credit) to 850 (very excellent credit which assures you the lowest finance charges if you have it). It's an abbreviation for Fair Isaacs, the company that invented the FICO® credit risk score that lenders use. Starting in the 1960s, Fair Isaac sparked a revolution by pioneering credit risk scoring for the financial services industry. This new approach to lending enabled financial institutions to improve their business performance and expand consumers’ access to credit. Today Fair Isaac’s FICO® score is widely recognized as the industry standard for lenders.
The table below gives you a good ideal of what kinds of APR (Annual Percentage Rates) your FICO score can get for you so get your free annual credit report now. Strive to improve credit score which is all-important to survive during these financial times.