How to Get a Credit Report

Everyone is talking about their credit score and how to get a credit report. There is a good reason.  It is called Identity Theft and with the rise of the Internet and shopping online, it is in epidemic proportions.

It is very important that you get a credit report at least annually; There are three different agencies that may have a report on you. You can call them for the forms to fill in or you can get one downloaded off their website. They are:

Trans Union 1-800-888-4213 or go to www.transunion.com

Equifax 1-800--685-1111, www.equifax.com

Experian 1-888-397-3742 www.experian.com

Even if you have to pay to get a credit report, it rarely costs over $10.00 to do so. That is less than lunch in many places today. And, it will be well worth your time, effort and money to do so. Do not assume just because you have not used your credit card on line you are not vulnerable to identity theft.

When you get a credit report, it may have a score on it. It is called the FICO score. The higher the score, the better your credit potential to a lender. Any score over 750 is excellent. If it is between 720 and 749, that is also very good. However, if your score is between 720 and 660, even though it is considered acceptable, it may bump you into a higher interest rate category. Below 660 and you are considered a risk. Most likely you will be turned down for a loan and will have to resort to getting the money at an outrageous interest rate of up to 25% through a lender that takes poor credit risks.

How are these scores calculated? 35%, or the majority, is based on how often you made payments, what amounts and to whom. Then another 30% comes from the amounts you currently owe to credit cards, banks, mortgage companies, dealerships, etc. Another 15% is tabulated from your history over the last seven years and the length of it (i.e. how many people you have owed money to and for how long- paid off or not.) The last 20% is split between the number of new accounts you have applied for or opened within the last year and on how much of a mixture it is. The less you have the better your score. Also the longer you have had credit with one company ups your score because it proves financial stability and responsibility.

If you wish to dispute your credit score or something in your report, it is best to go through the company who reported it, not the reporting agencies. However, if you spot something that is fraudulent, contact everyone, including the authorities. Be the squeaky wheel until it is resolved and your credit score is recalculated. Any disputes you have will be reflected on the report until resolution to your satisfaction has happened.

Keep in mind that your FICO score may vary between each of the reporting agencies because not every lender belongs to all three. In fact, most do not. It may take time, but might be worth the effort to contact your lenders and ask them which they report to before deciding who to get a credit report from, or whether you have to get it from each of them.