What to Look for in a Free Online Credit Report
Posted at by ifydcat on category CreditA free online credit report is available to everyone in the United States. You can get a detailed report with the major credit bureaus, which are Experian, TransUnion and Equifax. Keeping yourself up-to-date with your credit reports will tell you your credit score, which is what creditors base loan approvals and interest rates on. More importantly, checking your credit reports regularly will enable you to check for any errors or fraudulent activities that may occur in your financial statements such as other people using your identity in loan applications.
A credit score is a numerical value that represents your credit history. Your scores will help creditors determine how much of a risk they’re taking when they eventually approve your loan. It shows them in a nutshell your background in paying your previous loans. It will tell them if you have been prompt in paying your loans, if you have defaulted in any previous loans, if you are financially capable of paying back your loan, etc. If you have a low credit score, you will get a higher interest rate if the loan is approved. This will surely be reflected in your online credit report.
If your online credit report shows a good credit score, on the other hand, this will give you an edge in acquiring loans with a much lower interest rate since the creditors are assured that you would most likely pay your dues on time.
There are many sites that offer free online credit report. Creditreport.com, for example, is a site where you can get a free credit from the three major credit bureaus. You can also check FreeCreditReport.com and MyFreeCo.com. These sites offer the same services. Commonly, these websites offer one of the major credit bureau’s reports for free. Subsequently, if you need all three reports, they will ask you to pay for the other two credit online reports. It is not odd for the three major bureaus’ credit reports to have some differences. If you just want to check on your credit status, then getting the free report will do.
It is also important to know that a free online credit report does not always include a credit score. If you want to find out your credit score for loan application purposes, look for a site that will provide your credit score as well.
Generally, websites who offer a free online credit report will charge you a certain fee for credit scores.
Contrary to what some may believe, checking your online report will not in any way affect your credit score. However, whenever a creditor you’re applying a loan from will check your online credit report, your credit score will drop by seven points. It is definitely important to be updated with your online credit report. Nobody is responsible for any errors or fraud in your report but you. If you detect any errors, report it immediately since this may affect your credit scores significantly.