Obtaining Your Credit Report

You should know what the credit bureaus know, about you. If you are denied credit, you have the right to ask for a free copy of your credit report. The major credit bureaus are listed below:

 Experian
PO Box 8030
Layton, UT 84041-8030
800/ 520-1221
www.experian.com
*Single Report Online $9.00

•Equifax Credit Information Services
PO Box 740241
Atlanta, GA 30374-0241
800/ 685-1111
www.equifax.com
*Single Report $9.00

•Trans Union Corporation
PO Box 390
Springfield, PA 19064-0390
800/ 916-8800
www.transunion.com
*Single Report $9.95

When requesting a copy of your credit report make sure you include the following information:

Full Name (including Jr., Sr., etc.)
Complete Addresses for the last 5 years, including zip codes
Social Security Number
Spouse’s Full Name, if married
Year of Birth
Copy of Driver’s License or Current Billing Statement

About Credit Bureaus

Credit bureaus are repositories, libraries of information if you will, on the credit transactions of individuals. The individual’s credit files are updated on a regular basis. On an automated basis, lending sources electronically report virtually all loans, mortgages, credit cards, student loans and collection information. To help verify customer identification, credit reports contain demographic information such as consumer’s name, plus any know aliases, current address and date reported, up to two previous addresses and the date reported on the first two previous addresses, Social Security Number, date of birth, telephone numbers and most current employer, one previous employer, including addresses, position, income, and date employment was verified/reported/hired - if available.

The Credit Report

The credit report itself is a credit summary, which provides a snapshot of all activity on the consumer’s credit report.

      Number of Negative/Derogatory Trade lines - Trade  line information provides an on-going historical and current  record of the consumer’s buying and payment activities.     Trades are listed by most derogatory followed by date        verified or vice-versa. 

      Number of Public Records -  Public record information is maintained on a consumer’s file in compliance with the Fair  Credit Reporting Act. This information is obtained from County, State and Federal courts and provides notification of civil suits, judgments, tax liens, bankruptcies, and other public record information.

      Number of Collections - Collection accounts are trade lines that have been transferred to a professional  debt-collecting firm. These trade lines are identified by a KOB “Kind of Business” code of “Y.” Outstanding medical/hospital obligations are listed to be easily identifiable.

      Number of Inquiries - Inquires display which companies have viewed the consumer’s file over the last two years. This category also includes the date the inquiry occurred, as well as the inquiring subscriber’s Trans-Union assigned number and name. Inquires also displays the name, code number, address and telephone number of the trade line, public record, inquiry and/or collection subscriber whose information appears on the report.

The Credit Score

The credit score is one of the most important factors used by lenders to determine how much credit you can obtain and what that credit will cost you. A high score can save you thousands of dollars in interest over the course of a loan. A low score can cost you a lot of money in interest payments.

Recently Fair, Isaac & Co., based in San Rafael, California, announced that they were going to allow consumers to buy access to their official credit score. For $12.95 consumers can view their credit scores and get an explanation of the score. Fair, Isaac & Co. is the developer of current technology used to generate credit scores for the three major credit-reporting agencies.

Although there is controversy surrounding the fee, it would be wise for individuals to review their score, especially when planning on any major purchase, which would require credit approval in order to finance the purchase. Mistakes in the credit report, which the credit score is based upon, can cause people to be placed in a higher credit risk category, thus being charged higher interest rates or outright credit denial.

You can access your credit score at www.myfico.com or at www.equifax.com . When you reach the site, click the link for "Score Power." You will have to provide your name, address, date of birth, driver's license number, and Social Security Number to get your score. Most consumers score between 300 and 850. The higher the score, the better the credit. A scores of 712 is considered by most lenders as a good score/an acceptable risk. Such a score will generally make available a wide array of loans and credit products with attractive rates. However, do remember that lenders also often consider factors other than the score.

Credit Score Factors

Credit Score Are Based On The Following Factors:

35% Payment History
30% Amounts/Types of Outstanding Debt
15% Length of Credit History
10% Recent Credit Sought/Gained
10% Types of Credit in Use

Raising Your Credit Score

Raising Your Score:

Apply sparingly*.  Seek credit only when you need it, not on a whim
Don’t charge indiscriminately. It can make you look deep in debt, even if you pay it off every month
Avoid maxing out. This makes you look risky, borrow less or raise the limit
Pay on time. Late payments do more to hurt your score than anything short of default or bankruptcy
Inspect your credit report. Errors or omissions in credit bureau data are common

* Even shopping aggressively online for the best rate on a new loan can lower your score. Too many credit inquiries will count against you. Getting too much credit at once makes a person appear risky. Building up gradually and establishing a good payment history is a better approach.

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