Why Is Free Yearly Credit Report Important

Why wait till you need a loan or mortgage or a new job to get your free yearly credit report and check it? Your credit report is something that informs you about your credit ratings. It includes all information about a person’s payment history, bankruptcy and any other legal suits that the person may have, which is why it is all financial institutions and prospective employers insist on checking the credit report. The credit report determines your interest rates at the time of taking out loans. A good credit score always creates favorable impression of financial responsibility. Unpaid bills and accounts lower the credit scores and increase the rates. But if the bills are paid on time, the scores go up.

How to Get Free Yearly Credit Report

Three audit bureaus, Equifax, Trans Union and Experian, review this report. You can avail yourself of this free yearly credit report once a year. The bureaus are bound by law to provide you with this report free of cost once a year. But if you need it more than once in a year, then certain charges are to be paid. You can place your request for your free report at www.annualcreditreport.com, by mail or over phone. Apart from this, there is no other company, which actually provides a free yearly credit report. There are always some charges involved.

What Does the Credit Report Contain

Your credit report contains all details about you. It has all the details of your payment history, any lawsuits, legal problems, your address, unpaid bills and accounts, defaulted loans and bankruptcy filings.

What to Check in the Credit report

When you are in possession of your free annual credit report, check it for any inaccuracies. If you find any inaccurate information, report it and get a notification. Most people find out about these inaccuracies only when they apply for a loan or for a new job. It is then that they come to know of charges that they had never made. Checking the report at least once a year ensures that you are informed immediately in case of stolen identity. Ensure that you inform the authorities of the discrepancies in your report within the stipulated time in writing.

Your free yearly credit report is gauged for much more than credit worthiness. It is also gauged by employers to assess a candidate for a job. If the credit score on the report is very low, then he or she may be passed over in preference of a candidate with a good score.

Conclusion

As your report contains all details of your life, it cannot be just pulled up by anyone without any legitimate reason. When your report is accessed by anyone else apart from you, your score goes down a little.