Review Your Annual Credit Report

Not too long ago, consumers were effortlessly able to get a loan, mortgage or credit line. The recent tumult in the economy has made that ancient history. Consumers are reeling from the recent decline in home values, the economic downturn and the credit crisis. Banks have tightened their lending standards and are examining the credit histories of applicants much more closely than before. That means that mortgages, loans and lines of credit are harder to come by. One way to make sure you are a safe bet for lenders is by making sure your credit history is strong and clean. Your annual credit report can provide the information you need in pursuit of that goal.
Your credit report, also referred to as a credit file disclosure, contains personal information that provides a snapshot of your financial and employment history. When you apply for a new account, mortgage, job or insurance, the company you apply with will request your credit report. Businesses who are considering offering you insurance, a mortgage or a position with their company want to know if you are a sound applicant. Your credit report is used to calculate your credit score. The rates you are given for loans and credit is directly impacted by your credit score. That is why it is crucial to know and understand what is on your annual credit report.
The Fair Credit Reporting Act (FCRA) protects your credit by setting rules about who can access your credit records and how. Under FCRA, everyone has the right to a free annual credit report from each of the three major credit bureaus. The three major bureaus are Equifax, Experian and TransUnion. If you wish to request a free annual credit report, do not do so with the three major credit bureaus themselves. You will need to request your reports one of three ways. You can do it online via AnnualCreditReport.com, which is the only authorized online source for your free reports. You can request your annual credit report over the telephone at (877) 322 8228. You will need to undergo some verification with the agent on the phone before you can proceed. Your third option is to request your annual credit report via mail. You can download the form online, then print and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348. The aforementioned three options are the only methods authorized by the FTC for your free annual credit report requests.
Your annual credit report will give you a snapshot of what potential lenders see when you apply for credit or loans. Make sure you take steps to fix any inaccuracies on any of your reports. Contact all three of the major credit bureaus to make sure each annual credit report reflects the changes. You will not receive a free annual credit report automatically. Make your request through one of the government sanctioned and trusted options and examine your reports. Doing so will keep you informed and in control of your credit future.