3 Credit Bureau Report – Free Score

Rebecca asked:


I pulled up all 3 credit Bureau reports online…got 3 seperate scores…Is each individual score the same FICO score that lenders go by when considering you for a credit card?

Jeffery

Irena Bocheva asked:




Are you trying to obtain a mortgage or auto loan, but fear being turned down by creditors? Do you want to apply for a business loan, but don’t want to pay thousands of dollars on high interest? Whatever you specific situation is, you are not alone-more than 35 million Americans are struggling with issues related to bad credit score. Getting turned down on your loan, employment or lease application are just some of the side effects of having a low FICO. The growing significance of your FICO makes having a good credit score a necessity.

Here are 3 simple tips that will help you raise your score in less that a month

1 Face your credit problems NOW.

A lot of people postpone solving their bad credit issues until it’s too late. The collection phone calls, the tons of unwanted mail, the fear of applying for loans-deal with the issue NOW. The problem with bad credit is that the more you procrastinate action, the more your credit problem spins out of control. Don’t pretend that the problem doesn’t exist-face it.

2 Approach your credit problem with a clear plan of action.

Order a copy of your credit report and highlight all negative items in it. Which are the most harmful negative accounts in your report? There are various credit repair strategies which are tailored towards each type of negative account (collections, legal judgments, late payments, past due payments, tax liens etc). What works for late payments (pay them in full and send “goodwill’ letter to creditors) does not work with collection accounts (pay only the settlement amount and negotiate for the removal of the negative item). Familiarize yourself with the different credit strategies and start applying them to the most harmful accounts in your report.

3 No proof-no guarantee

There is one simple rule in the world of credit repair-try to keep everything in written form. Always use certified or registered mail, make copies of your correspondence with credit bureaus and collection agencies. Always ask for written verification of every deal you strike with a credit bureau or collection agent. If you don’t keep written proof of your efforts, you might be simply wasting your time.

How raise your credit score fast? The KEY is knowledge about the inner workings of the credit system and the various loopholes in it. Once you start thinking outside the box, you will be surprised to find how easy credit repair actually is.

Kurt

Nitin Saini asked:




Credit report should be checked on a yearly basis. It becomes absolutely necessary to keep a check on your credit reports if your ever aced some discrepancy in your reports. Most common problem that people usually face is identity thefts. While ordering your credit bureau data always ensure that you get three copies each from TransUnion, Experian and Equifax.

The main reason for getting separate copies is that each agency gives a different report. Every creditor has their way of reporting. This means that some creditors report to just one agency where as some report to two agencies. There are also creditors who report to all three agencies depending on the loan type. Your loan history is especially shared to all three agencies when you have taken loans such as a mortgage.

In U.S., the process of keeping records of all the credit history is done for every individual. They keep record of every account you had for 5 to 10 years, loans which you have taken and also the ones that you have paid off. The history of the records helps them to produce their credit bureau data.

All three agencies keep your credit records. This means that there is every possibility of the report having errors. There have been serious discrepancies in people’s records, thus it is not just a possibility, but more of a reality.

The first question that comes up in your mind would be what would happen when you get a faulty report? It results in you FICO score or credit score being calculated at much lower than it actually is. The next question that would arise in your mind would be what effect does a faulty credit bureau data have on you? Well, your lowered credit score is making you pay extra money! You may be paying a 7% on your mortgage instead of 6%. Instead of paying a 2.9% on your car loan, which a qualified buyer pays, you might end up paying 8%. Your lowered credit score does not make you counted as a qualified buyer. These are just a few ways that make you shell out extra money.

There is no mechanism available to the credit bureaus which would automatically correct those errors. The credit bureau does not take any responsibility on their lax of reporting, as they believe it is only reporting that they are doing and they are not the ones generating it.

After checking out the view point of the credit bureau, you should take up the responsibility. You may be just a consumer or a business owner, whatever is that you do get a regular copy of you credit bureau data. Check the data minutely for any kind of discrepancy. Once you find any faulty reporting, approach the bureau directly. This should help you in getting an error-free report.

When you are checking on the reports, do not rush through it, as now you know how it could affect your credit scores. Cross check the data because error-free report will result in a higher credit score. With a higher credit score, you would not be shelling out anything extra from your pocket.

Leon

Francine Denson asked:




You probably already know that your credit history is kept in detailed records by three major credit bureaus. What you may not know is that in addition to all of that data, each credit bureau also assigns you a number, known as a credit score. That credit score is one of the most important factors in whether or not you can get a loan and if so, how much you will pay in interest. This article aims to help you understand your credit score and how it affects your ability to qualify for loans and lines of credit.

In theory, your credit score can run anywhere from 300 – 850. The average American’s credit score is 692 and scores above 700 are good. Your score is calculated using a secret algorithm developed by Fair Issac Company, which is why the term credit score is nearly synonymous with FICO score.

The credit scoring system takes in to account many different factors of your financial history. The bulk of your score comes from your proven ability to pay bills on time. Late payments and failures to pay will seriously damage your scores. Next, the score considers your outstanding lines of credit and how much you still owe. Keeping low balances on credit cards is a good way to avoid loosing points for being overextended.

The length of time that you have had credit is also considered in your credit score. Young people with less of a credit history typically loose points in this area. It’s important to establish some credit as early as possible and to maintain that well to prove over time that you can be trusted with larger loans.

Lastly, your credit score considers the types of credit that you have. A credit card is not the same as an auto loan which is not the same as a mortgage loan. You gain points for having a good history of well managed larger loans.

In actuality, because there are three different credit bureaus each with their own database, you have three different credit scores. Typically a lender will take the one in the middle or an average of the three when determining whether you qualify for a loan.

Each lender uses their own guidelines, but here’s a standard break down of what your score means:

730+ – Excellent credit
700 – 729 – Good credit
670 – 699 – Average Credit
585 – 669 – Higher risk
Below 585 – Very High Risk

If you have average credit or above, you shouldn’t have any trouble getting a loan. Those with good and excellent credit will pay less in interest than those who have smaller scores. If you fall in to a high risk category, it is a good idea to consider seeking help to repair your credit as you may find it difficult and costly to get any type of loan.

Barry

Helen Hecker asked:




Everyone wants a good credit score. So much of what we do financially is dependent on this FICO score on our credit report. Of course it’s important to try to make payments on time, etc. but this isn’t always easy to do. Emergencies come up. You can be the best person in the world and responsible too and you try to do things right. But there are secrets in the credit reporting field.

But you may just find yourself short on cash and try as you may just have to miss a payment or make a late payment or you’re charged for something you did not buy or returned or something else. Many times this is through no fault of your own.

If you don’t have a current free annual credit report you can get a free credit report instantly online. After you have your credit report in hand, look through the report and find all the negative marks or bad items. Make a list. Hopefully it’s short. Maybe you only have one or two. If you have several then list them with the highest amount down to the lowest.

This is an easy lesson in how to repair your credit. We’re going to tackle the lowest amounts first. And here’s the secret that many people do not know. If you write a letter to the three credit report companies or bureaus and dispute any of the amounts, the credit bureaus contact the creditors. If the amounts are small the creditor may not even bother to answer the credit bureaus.

The credit bureau has to remove the item if the creditor hasn’t responded within a certain length of time.

Don’t think that writing the letter is hard to do. Sit down early in the morning when you are fresh or at a time when you have more energy. Just simply address three envelopes to the three credit bureaus. They are Experian, TransUnion and Equifax.

You can easily get their address from the free credit report or online. Just explain that you found some errors on your credit report that you want to dispute. Make it short.

Enclose any relevant documentation, if you have any, which shows there is an error or that you want to dispute. This would include any cancelled checks, online payment confirmations, etc. Ask for a correction. Then say something like you want to keep a good standing and value an accurate and good credit history.

Also say something like a good credit rating and credit score is important to me. Make sure to name the creditor and the date of the error. Keep a nice tone to the letter.

Then close with a ‘thank you’ paragraph. Something like “Thank you for attending to my letter and this matter so I can maintain a good credit history. If possible let me know that my file has been reviewed and send me a copy of the corrected credit report.”

If you review your free credit report often you can catch small errors and fix your credit report before too much time passes. This is a little known secret and if the creditor amount is small enough you should be able to easily get it removed. It’s worth the small effort to raise your credit score. You CAN fix it yourself knowing this secret! There are many other credit report secrets!

Wesley