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Free Credit Report
Free credit report lets you check for problems often
Your credit report is a vital document that has more importance in your life than you may realize. You can check it for free up to once per year, per credit bureau, so get in the habit of doing so. You may be able to avoid identity theft and other problems.
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Checking your free credit report can save you from a host of problems
We are now in the 21st century, and life has become more complicated than ever. One of the complications in twenty-first century life is the emerging importance of the credit report in our lives. The summary of every single financial transaction we have ever had is a single number, known as the FICO score. That score is vitally important, as it affects our ability to buy a home, buy a car, obtain a home equity loan, and even our ability to find a job or a place to live. Since all of these things are important, it is equally important that we make sure that the information contained on our credit report is accurate. The best way to do that is to examine it regularly.
Prior to last year, there were two ways to obtain a copy of your credit report - you could purchase one through one of the major credit bureaus, or you could obtain one from a credit bureau for free if you had recently been denied credit. Congress has made it easier for Americans to keep an eye on their credit through the 2004 passage of the Fair Credit Reporting Act. The Act allows Americans to obtain one free copy of their credit report each year from each of the three reporting agencies - Trans Union, Equifax, and Experian.
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Heavy anticipated demand for the reports has caused the program to be installed in stages. People living in the West, Midwest, and South can obtain their reports now; those in the Northeast will have to wait until September 2005. All that is required to get yours is to provide your name, Social Security number and some additional information at the official free credit report Website. Since it is so easy to do, there is no reason to put it off.
The credit score is a three digit number that represents a distillation of a person’s financial status. The score is obtained through a complex and proprietary formula that takes into consideration a person’s ability to make payments, borrowing habits and spending habits. Any filings of bankruptcy are noted as are any liens or mortgages. Scores range from 300 to 850; the higher the score, the more qualified the applicant is for credit. The average score is 723. The information contained on a report is generally accurate, but mistakes do happen. People can get confused with others who have similar names or Social Security numbers and this can negatively affect your credit rating. A check of the credit report could reveal such a problem and it could also reveal spending from unknown parties that might indicate possible identity theft. If your identity is stolen, you could find yourself liable for expenses you never incurred. Worse, your overall credit score could be negatively impacted and you could find your self being forced into bankruptcy or being unable to obtain a loan or a job. Recent changes in Federal bankruptcy law draw no distinctions between those who spend themselves into bankruptcy and those who have it forced upon them through identity theft.
The law allows one document per credit agency per year, so anyone who is interested can check their report once every four months. Since our lives are affected heavily by our financial information, this is a great idea.
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