Understanding Credit Report
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By Gary Gresham |
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Understanding credit report scores is important when you see your
credit report because you need to be able to make some sense of
it.
Your credit score is used by anyone loaning you money
such as credit card companies, home loan lenders, auto loan
lenders and finance companies. They all use your credit score to
determine your credit risk. The interest the lender charges you
is based on your credit risk. So you can see how understanding
credit report scores is information that can save or cost you
money.
You need to find out what your credit score is
before you talk to any lender in case there is something on your
report that you may question. You don't want the lender to find
a mistake that you aren't aware of. If you find a mistake, it
takes at least 30-60 days before you see corrections in your
credit reports and scores.
You have probably heard that
checking your credit will bring down your score. But checking
your own credit report and score is counted as a "soft inquiry"
and doesn't harm your credit score at all. Only "hard inquiries"
from a lender or creditor, made when you apply for credit, will
bring your credit score down a few points.
Your credit
report should have the three main credit services Experian,
Trans Union and Equifax and each service will give you a
different credit score.
The credit scores will range
between 300 and 870 with each credit service giving a different
score. The higher your score is the better, because as your
credit score increases, your credit risk decreases.
The
average high approval score where the best interest rates are
offered is 680 or above. The credit score the lender uses comes
from the middle score or an average of all three scores is
sometimes used.
Don't be surprised if you find an error
once you get your credit report. Statistics show that 70 percent
of credit reports contain serious errors. Those errors are what
you want to clear up because they will affect your credit score.
If you find a mistake, you have the right to dispute the
information free of charge. Contact the credit bureau that
provided the information and dispute the inaccurate information.
Below are the names, addresses, phone numbers and web sites of
the three credit bureaus TransUnion, Experian and Equifax.
Equifax Credit
P.O. Box 740241
Atlanta, GA 30374
Equifax 800-685-1111
http://www.equifax.com
TransUnion
P.O. Box 1000
Chester, PA 19022
Trans
Union 800-888-4213
http://www.transunion.com
Experian
P.O. Box 2002
Allen, TX 75013
Experian 800-682-7654
http://www.experian.com
You can also contact the creditor
direct and ask that the corrected information be provided to the
credit bureaus.
If you suspect any fraud, contact all
three credit bureaus immediately and place a fraud alert on your
report. Then, contact your credit card companies and bank to
protect your accounts.
Understanding credit report scores
and checking your credit report at least once a year will keep
fraud in check and keep your credit score safer.
Copyright 2005 Credit Repair Facts.com All Rights Reserved. |
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