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Annual Credit Report.com Vs Free Credit Report.com

Sun, 29 Mar 2009 17:27:07 +0000

If you have been around the TV in the last few years more than likely you are familiar with the FreeCreditReport.com commercials. They get with you a catchy tune that most people know. A parody has been made by the real free credit report site, AnnualCreditReport.com.

The strings attached line is a direct reference to FreeCreditReport.com’s subscription. To get your credit report there, you will have to enroll in their credit monitoring program, Triple Advantage. This does cost money but it comes with a free trial to begin. That is how they are saying you are getting a free credit report.

Now, you are entitled to a free credit report once per year through AnnualCreditReport.com, but this does not include your credit score. You will have to either pay for a credit score or enroll in a credit monitoring service.

The way it is present between the two parties, AnnualCreditReport.com and FreeCreditReport.com, gives two different sides. Annual Credit Report is almost stating don’t do these other guys, it isn’t worth it because it will have strings attached and you will get it for free from us. FreeCreditReport.com has the position that you will get a free credit report and score if you enroll in our credit monitoring program, but we will hardly talk about triple advantage and what it really does. We will instead stress the fact that you get a free credit report and score if you join.

So which is the better stance?

The full story should actually be told. Credit monitoring is actually a worth wild product, but selling it using a free credit report and score is the industry norm. Most every credit monitoring program you will find out there offers a free credit report and score to get you to sign up. AnnualCreditReport.com is just confronting the most recognizable.

Also, as stated above a credit report is free, but a credit score is not. A “free credit score” always will come with some strings attached. These strings are signing up for a credit monitoring program.

Here is the consideration that must be made: If you are person concern about your credit, credit reports, credit scores, being protected from identity theft, and trying to improve your credit, credit monitoring is worth it. If so you will want to check your credit report and credit score more than once per year. Taking that into account the cheapest way and the best way to do this is credit monitoring. Depending on the program, you will be given access a certain number of times to both your credit report and score.

Also, on the push to improve, many credit monitoring are going to give you assistance by analying your credit report to see what you can do to improve. Many programs provide alerts to when changes are made to your credit report. Also, some watch your score and alert you when you hit your credit score goal.

Identity theft is another reason why credit monitoring is worth it. Millions of Americans each year are struck by this crime. The average money per person lost is around $5,000. Also, the time and effort needed to clean up your credit report is daunting. Credit monitoring is a form of prevention. They watch your credit report 24/7 365 days a year. Also, most programs come with a form of identity theft insurance.

Conclusion

Maybe the choice needs to be made to sell credit monitoring for what it is. For a person that wants to check their credit report and score more than once per year. Also, a person who is concerned about their credit, wants to improve their credit standing, and does not want to be a victim of identity theft. Selling the product biased on its real benefits not a bonus of getting a free credit report and score when you sign up. This would more than likely not sell as well, but consumers might known what they are getting into from the beginning.

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Background Checks and Your Credit

Fri, 27 Mar 2009 05:55:46 +0000

A comment on a previous post about the credit score scale a commenter asked the question what credit score do employers check? This prompt a complete research of what I believed was the answer but needed some verification. The answer is employers actually do not check your credit score, they check your credit reports.

The rules that are followed here are laid out by the Fair Credit Reporting Act. It states employers do have the right to review your credit report as a form of a background check. This does not happen without you knowing though. The employer must receive your written permission before they can access your credit report and this will included the employee signing off on it.

When an employer has your permission they then will request your credit report from one or all of the three major credit bureaus. What they get from them is what is known as an “employment report.” This is report includes all the same information as a normal credit report, but it will not include your credit score.

So when you applying for a job and you are concern about your credit standing you should check your credit report. Even though this is what really matters to the employer it would hurt to review your credit score when you are doing so. Also, if you are concern it is not the cleanest report and could be a potential problem, you have a few options. First would be to dispute credit report errors. This will be one of the quickest ways to improve your credit standing. Other methods could take some time, but paying your bills on time is one of the biggest.

If you are wanting to check out how you stand visit MyFICO to get your Fico Scores/Reports. This is the best place to get both.

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How Often Do You Check Your Credit Report

Tue, 24 Feb 2009 21:27:26 +0000

Chances are you are like most consumers and hardly ever check your credit report even though you are entitled to one free one a year. Is it forgetfulness or the mentality what has my credit report done for me lately? Consumers often check their credit report before a few important times such as getting a new job, getting an auto loan, or the biggest, applying for a mortgage. The rule to follow is to at least check it once per year. If you want to really stay on top of your credit reports you should think about checking twice per year.

Why so often? The biggest example would be if you are thinking about applying for new credit. If you want have the best chance of getting approved and get the best possible interest rate, you will need a good credit score. Your credit report makes up the info that goes into your credit score. The hidden fact is that most credit reports have errors on them. Bankrate.com states that 70% of consumer credit reports have errors. That is a scary high number and you can guarantee that these are not in your favor. They lower your credit score and most can be disputed.

Disputing these mistakes is going to take time. It is not an overnight process. The disputes take upwards of 30 to 45 days. Also, this is no promise that they will be removed from your credit report. If the credit bureau states they will remain on your credit report, you then have to contact your account. This is going to take even more time. The last thing you want is to be delaying your financing when you have your perfect home in mind.

Another reason to think about checking your credit report twice a year is identity theft. If you don’t think this could happen to you, this is a huge mistake. Fight Identity Theft.com puts on their homepage that 8.4 million individuals in the US were victims of identity theft last year. This number grows every year. The annual cost was $49.3 billion or $5,720 per victim.

Your credit report is going to be one of the best ways to know if you are potentially a target and or if you are a victim. There will be addresses on your credit report that you have never heard of. Or accounts that you know you didn’t open. This is a clear sign someone has got a hold of your identity.

This alone is reason to check your credit report more than once per year. You can do this yourself or pay for credit monitoring. This is an easy way to not only gain access to your credit report more than once per year including your credit score, but they will watch your credit report 24/7. They will alert you to any changes and you will always be on top of it. This does cost money, but the peace of mind is often worth it.

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How Often To Review Your Credit Report

Mon, 09 Feb 2009 03:48:25 +0000

As a minimum you should be checking your credit report once per year. This seems to be almost a forgot thing to do by the majority of consumers. It is usually done right before applying for a mortgage or a job.

This can almost be too late. For example if you have a credit report errors. These are going to take at least 30 to 45 days to be disputed and possibly removed from your credit report. If they are not removed, you then have to contact your account to dispute the item and hopefully have them remove it. This will take even more time.

A more aggressive approach is to check you credit report every six months. I know that you get just one free one per year, but shows your financial fitness. You need to protect it.

If you just want to sleep at night not thinking about checking your credit report every 6 months you could sign up for a credit monitoring program. They do cost money, but not as much as you think. The best bang for your buck is the MyFICO quarterly monitoring.

So lets compare this to a 3in1 credit report that you would normally get which costs 39.95. This is every single one you get costs this much. With MyFICO quarterly monitoring it costs $49.95 per year. That is just $10 more. What you get will quarterly monitoring is a lot. First, you get to review your credit report every quarter. You will also get your FICO score every quarter. Plus you will get $25,000 in identity theft insurance.

So if you are wanting to check your report twice a year you would spend around $80. If you want to check your credit report and get your FICO score quarterly it cost $49.95. Check it out for yourself: FICO® Quarterly Monitoring

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How to Dispute Errors on Your Credit Report

Sun, 08 Feb 2009 00:49:26 +0000

If you are trying to get a quick boost to your credit score, there is a simple method most people overlook. Dispute errors on your credit report. BankRate.com says “70 percent of credit reports contain serious errors that might cause consumers to be denied credit cards, car loans and even mortgages.” This post will go into detail about what to look for and how to dispute them.

How is this going to improve you credit score. Well, if you have an error it is more than likely a negative one. If you dispute the error and it is found to be incorrect, it will taken off your credit report. This negative factor will no longer be in the equations and has the potential effect of raising your credit score.

The first part of this equation is to get a copy of your three credit reports that is right all of them. Here are some links to some sites that you can find all three.

Why all three? Because each credit bureaus has their own report on you and they don’t share data. Also, your accounts are not required to report to all three. So if an account reports to just one credit bureau and their reports will state something that isn’t true. So, if you don’t have the right report you will never find it.

Here is a quick overview of the error disputing process. If an error is reported to the credit bureau, they have to investigate it and get back to you within 30 days. The investigation involves contacting your account and asking them if this information is not correct. If the account agrees that it is wrong or they don’t respond back it will be removed from your credit report. If the account says it is correct it stays. If this is still an error you must then take it up with your account.

Now lets review your credit report and the things to look for. You should keep a separate piece of paper or some way to record what you think are errors. This will serve as a quick reference and as a checklist for you to follow up on.

The things to Look For

The first section is your personal information.

Name
Social Security Number
Birth date
Addresses

A common error could be the misspelling your name. But if you see addresses that you have never lived at, this could be the sign of a much bigger problem like identity theft. Hopefully not, but write down any errors you see.

The next section is your accounts. Here is what to look for here:

Any Late Payments older than seven years. These can be removed.
Accounts that you don’t know about. This again could be a sign of identity theft.
Your spouse’s debts that they had before marriage.
Delinquencies that you didn’t know about

The next thing to look at is your inquiries. Here are two things to look for:

Any inquiries that are old then two years. These can be removed.
Any hard inquiries you didn’t know about.

The last thing to look at on your credit report is your collections and public records. Here is what to look for:

any bankruptcies older than 10 years. These can be removed from your credit report.
paid liens or judgments older than seven years. These can be removed.
duplicate collections. This is often the case if you have been sent to collections and then a collection agency sells the debt to another. It could have the presence of two collections and can be removed.

Now, that you have your list, you need to do your research. It is best if you have some proof on your side when disputing errors. After this you can dispute the mistakes. There are three ways: telephone, mail, and online. Here is that information for each credit bureau:

Experian

Mail: Experian Disputes - P.O. Box 2104 Allen, TX 75013
Phone: (888) 397-3742
Experian Dispute

Equifax

Mail: Equifax Disputes – P.O. Box 740256 Atlanta, GA 30374
Phone: (866) 238 8067
Equifax Dispute

TransUnion

TransUnion Disputes – 2 Baldwin Place P.O. Box 100 Chester, PA 19022
Phone: (800)916-8800
TransUnion Dispute

When you do send in your disputes, you should include your evidence. This will be forwarded to your account and will help back up your case. Furthermore, if you do choose to dispute through the mail send the mail certified. This way you can be assured of its delivery.

The process will begin with the credit bureau contacting your account with the dispute and the information provided. The account then has a period of time to respond. If they do not respond in time it will be removed from your credit report. If the account responds stating that it is incorrect it will be removed. Also, your account will be required to contact the other credit bureaus to ensure it is taken off of the other reports. If the potential error is stated to be true by your account, it will stay on your report. You then will have to contact your creditor about the error.

The credit bureau’s investigation is conducted over a 30 day period. Most responses come with in 30 to 45 days. If there was an error, you are entitled to a new copy of your credit report without the error. Also, you can request a new report be sent to anyone who has received your credit report in the previous six months. You can also have a new report sent to any employer who has access your credit report in the last two years.

If the item is unresolved, you can ask the credit bureau to include a statement of the dispute with your credit report. This will have no effect on your credit score, but will be given to anyone wanting to review your credit report.

The process will take some time so if you are planning to apply for a loan you need to find and fix any possible errors right now. You should be trying to get the best possible rate on a loan and you need to do anything to improve your credit score. This is the one of the simplest and quickest way to give you that boost.

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What is on Your Credit Report?

Sat, 31 Jan 2009 02:53:03 +0000

There are three different credit bureaus and each of their credit reports contain the same general information. Here is a brief overview of what you will find or could find.

Person Information

This includes your name, social security number, employer, and addresses that you have lived at.

Your Accounts

This section of your credit report is a list of all your accounts. With each account will be the date it was opened, the credit limit, the balance, your payment history to the account. Also, each account will include the type of credit it represents like mortgage, auto loan, and credit card.

Your Credit Applications

These are usually called credit inquires. This is a list of every time your credit report has been accessed in the last two years. There are two different type of inquiries, hard or soft. Hard is when you have applied for new credit and the lender reviews your credit report. Soft is when yourself, a employer or insurance company access your credit report.

Collections and Public Records

This is section will show an accounts that have sent your to collections. It could also include any liens, bankruptcies, wage granishments, suits, and or forclosures.

Your reports look different?

Since there are three different credit bureaus you will have three different credit reports. Not all the information will be the same and can vary vastly from report to report. This is becuase accounts are not required to report to every bureau just one. If this does happen the information will only show on this report.

So if you are going to review your credit report you should get all three. Consumers are entitled to get a free credit report once per year and everyone should be taking advantage of this privelage. Here are some place where you can find them for free:

Once you got your copy hold on to it. It is a great reference. It could point out what you should do to improve you credit score.

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The Effect of Fair Credit Reporting Act

Fri, 23 Jan 2009 23:28:51 +0000

There is no better way to say it than what Congress stated in the Fair Credit Reporting Act.

“The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning banking system.”

Congress’ view is that proper credit reporting is positively correlated to the health of the economy. The US economy is based on consumers using credit to spend. A lack of credit brings the economy to its knees.

This has taken root in the last few month in what is known as a credit crisis. The lack of credit in the market has caused the economy slip into recession. It is not due to unfair or inaccurate credit reporting but practices like sub prime lending. The truth about sub prime lending is that looking at the information reported about individuals in their credit reports, they should not have received a loan. The flaw lied in lending practices and not the actual credit reporting.

Inaccurate reporting would have a more wide spread effect. It would seep its way into everything. As there is less faith in the reporting system, lenders would rely less on the information provided by the credit bureaus. Today has been the effect that the information provided is accurate, but lending requirements were lax. Less faith in reporting would make lending almost impossible.

This current credit crisis almost serves as an example of what could happen if there was inaccurate reporting by the credit bureaus. The economy would be severly hurt as it is now. Consumers need credit. Thier spending keeps the US economy functioning.

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