3 Credit Bureau Report – Free Score

David Faulkner asked:




Companies providing credit have certain criteria’s to ensure whether u will be able to pay back your loans or not. What ever sort of loan it may be, a car payment, a Visa or MasterCard or Discover or American Express, a department store credit card, a gas company credit card or a mortgage, they are all clubbed under one category and then accordingly a credit score is maintained by all the three big credit companies in United States of America. The credit score is calculated not only keeping in view the current unpaid bills but the complete account history and accordingly they analyze whether their money with you is safe or not and what more can be offered to you. So credit score does make a whole lot of a difference.

Criteria of credit score:

Most of the times a digit most probably ranging between 450 and 850 are allotted to the holder according to which your reliability is calculated by the bureau. The credit score system cannot be said to be fool proof, in fact there are some flaws in it. Some times a credit may be reflecting in more than bureau and as time passes as do the contracts and staff. Any errors that are left are untouched and remain there as it is. The credit company for the lender has changed but the defaults are still carried forward. This is not the case with Mortgage Company, that an exception, as it is reported to all the three bureaus depending upon the amount.

Credibility Of the system:

Another factor which raises eyes on the credibility of credit scores analysis system is the amount of data a credit bureau has to maintain. Such huge data can’t be errorless, not their fault. Not only they Keep track of your current status but also maintain the complete previous record. The total amount of data sums out to billions of records considering the number of businesses and customers in the country. According to studies around 10 percent of the records are corrupted, which is a lot.

No bureau can figure out the worthiness of a customer according to the credit score as the bureaus [http://www.creditscorereportguide.org/Experian_Credit_Report/] do not share their data with each other and a person being very appropriate in one case might be a defaulter with the other bureau. So the credit score is not an exact picture of your credit history but just a hypothetical thing.

What else is the option for us? All we can do it keep a close vigil on our own track record. One should not just rely on one of the bureaus and get regular statements from all the three agencies Equifax, Experian and TransUnion and check them regularly. In case of an error we must report it back and they have to either justify the thing or refund it. This process must be followed at least twice in a year so as to maintain your credit score as it does reflect how you have been in handling credits.

Lonnie

John Rasor asked:




Let’s say you are what most people would consider a good person. You help out in the community, volunteer to help others and even show up on the front row for church every Sunday. You recently applied for a home loan and to your surprise were denied. How could this be? You’re a good guy or gal, and deserve this loan, right? Could you be on the credit bureaus blacklist?

Since there is no such thing as a “blacklist” within the credit scoring system the answer is no. You are not on a blacklist. Your credit history are based on nothing more than factual data that lenders have provided about your pay habits.

Your fico score has absolutely nothing to do with your age, marital status, race, sex, nationality or religious beliefs. Your occupation and length of time on the job also have nothing to do with how your credit score is calculated. Only information present on your actual credit report make up your credit score.

Pretend for a moment that you are an underwriter working through a mortgage loan application. What would be of the most importance to you? Ironically, underwriters look at the same thing that the credit bureaus do.

1. Payment history is a biggie. This tells the tale of whether or not you can handle what you currently have on your plate. If you are consistently 30 days late on your car payment, why would you think you are worthy of a home loan?

2. Credit history is also important. The age of your accounts reveals your experience with credit. Multiple accounts like credit cards, student loans, car payments with several years of history, especially with perfect payment status will surely pass the test for an approval.

3. Your debt load makes a difference in how you handle available credit. If all or even a few of your credit cards are maxed out a red flag pops up. People in control of their finances typically use credit cards sparingly or always pay them off in full each month.

4. Recent inquiries can wreak havoc if you’ve had too many. Multiple credit card applications make it look like you are in desperate need of more credit, or just credit in general. Its ok to have a few inquires with multiple mortgage companies within a 14 day window. The bureaus only look at these as one inquiry since most people will shop around for the best home loan.

It always makes sense to obtain a copy of your credit report either before you make a mortgage application or if you are declined credit as a result of a low credit score. There are several arguments for this statement. One is identifying potential errors and fixing them before your lender pulls their copy. Another is having the upper hand when applying for a mortgage. If you have a great credit score use it as leverage and tell the lender up front. Request terms based on it and make that lender wait to pull your actual credit report until you have received multiple offers.

Clinton