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Obtaining Your Free Credit Report and Score
By Francine L. HuffMortgage Credit Problems Columnist
If you're thinking of
applying for a debt consolidation or home equity loan and have poor credit, you
need to make sure you know exactly what is in your credit report. Lenders use
your credit report to decide if they want to risk extending credit to you, as
well as the amount of interest they will charge you for a loan. Here's what you
need to know about obtaining a free credit report and credit score.
Who Issues Credit
Reports?
Federal law requires that the three nationwide consumer
reporting agencies give you a free copy of your credit report once a year upon
your request. Free reports from those agencies, Experian, Equifax, and
TransUnion, should be requested at www.annualcreditreport.com. Exercise caution
with other websites that offer free reports since many of them require
customers to sign up for credit-monitoring or other services that may start out
as free but then change to paid services after a few months. You also are
entitled to a free copy of your report if your application for a debt
consolidation or home equity loan, as well as other types of credit or
insurance, is denied. If that happens, you have 60 days to request a copy of
your credit report directly from the consumer reporting agency named in the
letter you receive.
Getting Your Credit
Score
Don't confuse your credit score with your credit report. The
credit score is calculated based upon the information in your credit report.
The most commonly used score is the FICO score, which ranges from 300 to 850.
Experian, Equifax, and TransUnion also have their own version of the FICO
score. Generally you'll have to pay for your FICO score. However, if you are
denied credit and the lender cites your FICO score as a primary reason, you are
entitled to ask the lender what that score is for free. The consumer reporting
agencies and other agencies may offer free credit scores if your sign up for
other services.
Don't wait until the last minute to request a free credit
report or credit score. If you plan to apply for a home equity or debt
consolidation loan, it's a good idea to request a free credit report and credit
score about six months ahead of time.
Source:
Federal
Trade Commission
About the Author:
Francine L. Huff is a
freelance journalist and the author of The
25-Day Money Makeover for Women. She
has appeared on a variety of TV and radio shows.
About the Author
Francine L. Huff is a freelance journalist and the author of The 25-Day Money Makeover for Women. She has appeared on a variety of TV and radio shows.
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