Thursday, 2 February 2012

Issues To Consider With Regards To How To Get A Credit Report

By Elizabeth Jackson


Most people work hard and try to pay their bills on time, which can make them prime targets for thieves who want to steal their personal, financial information. By following a few simple steps, they will know how to get a credit report to make sure they are not victims of identity theft. It can be done easily, on a yearly basis for no charge.

Basically, the information shows where the person lives, what kind of loans they have and how often they pay their bills. It lists any mortgages, lines of credit or auto loans the consumer has gotten. It also shows if they have filed for bankruptcy or have been arrested. Any errors found on the paperwork should be corrected as soon as possible.

Lenders use the data to determine if they want to give the consumer a loan, based on their past history with other financial institutions. Lenders can also use it to decide how much they will charge the person for the money they borrow. The more negative information contained in the payment history will mean higher interest charges.

The United States has a federal law, allowing any consumer the right to get a copy of their report, once every year. The copy is based on details kept by the country's three largest reporting companies. They do not send the copies out automatically. Consumers must first ask for the data.

One of the easiest ways to obtain it is by contacting the three largest reporting companies, directly. They each charge a small fee. There are also other companies that also provide the same service for a fee. Consumers can also contact the Federal Trade Commission, or FTC. The Commission is responsible for handling the financial reporting industry, and helps monitor the federal laws relating to the companies.

The Federal Trade Commission also has a pamphlet that consumers can request. The agency will send the brochure, called the "Annual Credit Report Request, " directly to the person requesting it. Once the individual fills it out, they can mail it back to the agency.

There are also other reasons besides the one federal law, that allows consumers to get additional copies. Any individual who is denied a job, any kind of loan or an insurance policy, because of the report, can also request additional free copies. There are several states who have also passed other laws, allowing their residents to get copies more often at no charge.

A person's overall score is not contained in the information. The score is a three digit number, based on the information. Consumers wanting to know their score must pay a credit bureau to release it to them. The better a person's credit payment history, the higher their overall score.

Almost every week, there are headlines in newspapers around the world about another gang of thieves, who have stolen the personal financial information of innocent victims. It is important for consumers to know how to get a credit report. It can help them monitor their financial information to discover if someone is illegally using their good credit history.




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