Your Credit Report

Everybody should get their credit report and learn their credit rating to see if they have good or bad credit.

There are three major credit bureaus in the United States; Equifax, Experian and Transunion. Each of these agencies maintains a file on all of the banking, credit card and other financial activity of every person over 13 years old in the United States. If you have a bank account, credit card, car loan, or mortgage chances are the big three have a file on you.

These files show your credit history which is a computer file that shows your banking and credit activity. Simply put it shows whether you have any bad debts such as unpaid loans or closed bank accounts. It also shows whether you pay off your credit card and other debts.

Why You Should Care About Your Credit Report

Banks, credit card companies, mortgage companies, car dealers and other lenders use the records compiled by the big three to determine your credit worthiness. That is whether they should loan you money or give you a bank account or credit card.

Credit worthiness is based upon a credit score based on the files compiled by the Big Three credit bureaus . The higher the credit score the more credit you can get. The lower the score the score the less credit you can get.

Anybody can see your credit score by requesting a credit report or credit file disclosure. This is a record of your credit history for the past seven years and your credit score. Banks and other financial institutions use this to make decisions about credit cards and loans.

This information is also used to make decisions about rental applications and employers sometimes use it for job applications. This means that if there’s anything false or inaccurate in the credit report it can hurt you by keeping you from getting credit, a job, a car, an apartment or even a rental.

How To See Your Credit Report

You can get a free copy of your credit report by going to www.annualcreditreport.com. This is a website run by the Big Three which allows you to request a free credit report. Go to this site don’t go to other sites which use a free offer of a credit report as a way to seel you a credit tracking service. These services simply charge you for information you can get elsewhere.

Why You Should Read Your Credit

You should look at your credit report every few months because the credit bureaus do a very poor job of checking the information that goes into it. They simply report what banks and other financial instituations tell them.

The credit bureaus make no effort to determine if this data is true or accurate. That means false or inaccurate information can be on your credit report and causing you to have bad credit.

You can challenge this information by writing to the credit bureau and questioning it. The credit bureaus will sometimes remove such information but they often don’t. Many people have had to complain to Congress and the news media to get false information removed from their credit reports.

Everybody should check their credit reports on a regular basis to avoid bad credit.