CREDIT CHECKS

Identity theft is a serious crime that occurs to tons of people each year. Those who have been through this gut-wrenching experience can tell you that it’s something you never want to live through if you can help it. It robs you of a positive existence and often costs tons of money in losses.

To try to decrease your chances of becoming a victim of identity theft, it’s important to be careful where you submit your personal information, who you let see it, and even how you dispose of it. But another way to help decrease your chances is to frequently check your credit reports.

If you’re needing to fix some of those incorrect items on your credit report, you’ll be happy to know that there are ways to get it done. Now before you get too excited, you should know that any negative information on your report that is accurate can only be legally removed by the collector at their own discretion – anything not removed by them will generally sit for 7 – 10 years.

Otherwise, those bits of information that aren’t correct can be removed if you know what steps to take. So let’s look at a basic credit repair strategy that can help you dispute items that shouldn’t be on your credit report.

Typically, it’s illegal to obtain someone else’s credit report without their permission; however, there are a few exceptions to this rule. Also, there are circumstances where you can obtain their report with their consent. Let’s look at this more closely …

When You Need Their Consent

Usually, you can obtain someone’s credit report with their signed, written permission when they are prospective tenant. For instance, if you own an apartment building and the person wants to rent from you, you have a right to determine whether they are likely to keep up with their payments. In this case, you have them sign a release form then you can legally check their credit. You just have to include in your request why you intend to check their report so that the bureaus can confirm its validity.

If you have ever applied for a car loan, a mortgage, or even a credit card, you know how important it is to maintain a good credit record and a high credit score. One of the best tools at your disposal when cleaning up your credit is your credit report from each of the major credit agencies – Experian, Equifax and Transunion. Each of these three credit bureaus maintains its own separate files on your credit history and generates its own credit report accordingly.

You may have heard of a “three in one” credit report, which is often offered by some independent companies. This type of report combines the three credit reports from Experian, Equifax and Transunion into one document, which is then delivered to you, usually for a fee. The advantage of this type of three in one credit report is that it may be more convenient for you to read one document instead of three separate documents from each credit bureau. However, there are a few reasons why you might prefer to go directly to the three credit bureaus to get the original documents yourself.

Having a high credit score rating is important in life. Your high credit scores help you to obtain certain things in life that you otherwise would not be able to get if you had a low credit score. Having a high credit rating can give you better interest rates on credit cards, car loans, and even your mortgage loans. On the opposite side, a poor credit rating can make many aspects of living difficult. It’s important to check your credit score to learn where you stand.

By keeping watch of your credit activity on a regular basis you can manage any detrimental items that need to be removed or fixed. These actions will create a better rating under your name and will benefit you throughout your life. The simplest and quickest way to do this is going online.

The way lenders determine your “credit worthiness” is through the FICO credit score formula, however that formula has changed. To get better deals on your mortgage loan, auto loan, or even your cell phone contract – your new FICO score will now determine whether you get that better deal or not. With the new changes, learn how your credit score has changed significantly.

The company that pioneered the FICO scoring system, Fair Isaac, stated that the new scoring system is more accurate than the older system. With the new FICO scoring system here – take a look at the impact that it may have had on your credit score.

Changes to the original FICO scoring system include:

We already know that buying a car is an expensive endeavor, but it can be even more expensive if you don’t check your credit report before visiting a dealership. Many prospective auto buyers have no idea about how directly correlated their credit score is to their ability to get the best car loan possible. If you are one of these people, then you will benefit greatly from learning why you should check your credit report before buying a car.

What is a Credit Report?