View Credit Report

To many people, credit score reports and credit report history are confusing terms. They are different from each other. It is possible to view a credit report for free at AnnualCreditReport.com. The big three credit reporting agencies put together this website after the United States Congress took some action with credit laws making it mandatory that consumers be allowed to obtain a credit report from each of the big three CRAs every year. Experian, Trans Union and Equifax are the “big three” credit reporting agencies; they keep records on credit transactions and histories for everyone who uses credit lenders that make reports.

Not every lender makes reports to credit reporting agencies. Consumers should find out what is in their credit report to check for accuracy and also to be sure that no one is illegally using their identity to obtain credit. If there is any error, the consumer can make a statement and request an investigation. If there is any possibility of a stolen identity, the consumer can request that the CRAs put a fraud alert on their account. This makes it impossible for anyone else to open credit in that name.

Credit reports are made by lenders on a monthly basis and all payments that are reported to credit agencies will be shown on the credit report. Get a new credit report every few months for one of the big three to best monitor your credit report history.

Credit reports score every consumer based on the amount of credit available, length of time credit has been open, number of credit accounts, and payment history. Late payments will result in a lower credit score. Low credit scores result in higher interest rates and possibly an inability to obtain new credit.

The credit score system is based on something called a FICO score. FICO is a registered trademark of the Fair Isaac Corporation. It is a system that measures credit risk. Numbers run up to 850 for a high score. A good score is above 720. Fair and poor scores are lower, with 300 being lowest.

Factors that are included and weighted in calculating credit score reports are: payment history, how the creditor uses their credit, how long they have had credit, what type of credit they have, and recent searches to obtain credit. The debt to credit ratio is important; credit scores can be raised by paying down credit balances but keeping accounts open.

Each credit reporting agency will provide a consumer credit score, but since they all calculate the scores differently, there will be three different numbers. The median credit score is 723, with most falling between 650 and 799.

The importance of having a good credit score has brought about a credit repair industry. Some of the tactics used by these companies work; others are fraudulent. To raise a credit score, consumers need to pay off/down debt, obtain higher credit limits but not use them, keep accounts open and pay accounts on time. Monitor consumer credit reports frequently.