|
|
Get a free copy of each credit report once a year As of March 1, 2005, you can get a free copy of your credit report from each of the three bureaus, once every 12 months, as part of a recent amendment to the Fair Credit Reporting Act (FCRA). |
||
Well, if you want to live the
“American Dream” and be able to buy a house or start a business or
even buy a car, at least three groups will care about what is in your
credit report.
|
How to order your free credit reports Important: Do not go to the individual bureaus! You must use the central source that was set up by the three bureaus at www.annualcreditreport.com or Call toll free, 1-877-322-8228 |
||
| It's important to realize the following: | Additional Information Your Access to Free Credit Reports - a Federal Trade Commission article More Credit Report Publications from Federal Trade Commission |
||
|
1. |
Your credit report is your financial management report card. The report contains basic personal information like your social security number, birth date, and where you live. But, just as important, your report also includes information about money you have borrowed and how well you have repaid it; how you use and pay your credit cards or credit accounts and your debt level; and how well you pay for goods and services that you have been provided, such as rental housing, medical services, and utilities. Your credit report also includes public information, such as liens or judgments against you. Most negative information can stay on your report for seven years, or 10 years in the case of a bankruptcy. Inquiries, or requests made for your credit information, are also included on your report and stay on your report for two years. |
||
| 2. | The
information contained in your credit report is used to create a “credit”
score. This score can range from 300 to 850. According to
information on myfico.com, the
scores of almost 90 percent of the nation fall between 500 and 800. The
better your past credit behavior, the higher your score. The higher your
score, the less risk you pose to a lender. People with the highest
scores get the best interest rates. A lender who is concerned about your credit score may still extend you credit, but will charge you a higher interest rate to compensate for the added risk. Over time, you can improve your credit score by removing incorrect information and improving your credit behavior--paying bills on time, paying more than the minimum, paying off debts, and showing you can handle credit cards and loans. For more information on how credit scores work, visit http://.myfico.com. |
||
| 3. | It’s up to
you to make sure the information contained in your report is correct.
If there is wrong information in your
report, or you are the victim of identity theft (and may not know it),
this information can affect your ability to get credit, how much you pay
to borrow money, your ability to get a job, or how much you pay for your
insurance. You can dispute information in your report that you believe is wrong. To find out how, check the Federal Trade Commission's website. |
||
| 4. | Make sure you check your
credit reports at least once a year. Check your report from each of the three major credit bureaus: Equifax Each credit bureau may contain different reporting information. |
||
| Written
by Suzanne Zemelman Gellman, M.S., J.D. Consumer Economics Specialist 636.970.3000 zemelmans@missouri.edu |
|
|
||||
 |
stcharlesco@missouri.edu |
 |
||
