By law, every eligible US citizen is now entitled to obtain a free credit report from TRW or any of the other 2 credit reporting bureaus. This free credit report has extensive list of financial information regarding individual credit records and transactions such as payment history and even bank balances.

It may also contains personal profiles like social security information, spouse information, mortgage, tax liens, court judgment and even bankruptcies, a consumer’s bank account numbers and bank balances are also essential data included with this report.

These records will be the basis for a credit score that determines a consumer’s eligibility to receive credit or get denied which in turn may influence the outcome of the applied loan.

Lending companies may utilize these information to help evaluate the credit worthiness of those requesting for big ticket loans or even applying for credit cards. Credit score is one of the most important factors used to determine whether the individual meets the criteria for a credit, and in such case what provisions and interest rates he or she will be given.

Basically a lending institution will use the credit score along with other factors when evaluating the risk factor. As such, it is vital to maintain a good credit standing as it is the basis of every credit decisions.

Internet and computer technology has dynamically transfigure financial reporting companies and can easily convey reports for consumers over the internet, so access to one’s credit history (and any other pertinent information) is now a breeze. A denied loan record due to poor credit rating can also be instantly & easily obtained online.

With a yearly free credit report from TRW, you will have the opportunity to monitor your personal credit report, identify and dispute any errors or possible fraud (due to identity theft) you may find in the report; even when you already know that your credit score is in good standing. This permits you to stay in control of your financial health.

In view of the fact that Experian procured TRW and the crediting components of its parent company, TRW credit report is now called Experian credit report. Thus, they are essentially the same reports, only with a different name. Experian can be contacted at 1 888 EXPERIAN (1 888 397 3742) by any individual to get immediate access to a free credit report.

Although you’re legally entitled to receive a free copy of your credit report annually from any of the 3 credit reporting bureaus, this free report will not reveal your actual credit score. To view the actual score that the lenders are seeing, get your score (plus 3 in 1 credit report) from freecreditscore.com for a free trial.

Individuals have free access to their own credit report by law and they are advised to review it once a year in order to be sure that the contained information is correct. Because all the recorded information is introduced by data entry personnel, discrepancies are inevitable, and if left uncorrected, they’ll continue to show up in future report.

In case that you notice any false information listed about your financial history, you have the option to file a credit report dispute. When doing so, you make sure that the credit bureaus will correct the mistakes as obliged by the Fair Credit Reporting Act.

Sample of Credit Report Dispute Letter

Date
Your Name
Your Address, City, State, Zip Code

Complaint Department
Name of Company

Address
City, State, Zip Code

Dear Sir or Madam,

I recently obtained a copy of my credit report from your agency and found the following item to be in error:

Item 1: I dispute ABC credit card account number 123456789. This account has been paid in full.

I am requesting that the item be (removed, updated, or other suggested change) to correct the information.

Enclosed are copies of (use this statement if you have bank statements, cancelled checks, or other documentation) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.

Sincerely,
Your Name
Enclosures: (List the documents you are enclosing. If none, do not include this section)

Source: http://credit.about.com.

How to Dispute Credit Report Error?

While you dispute credit report error, you have to stipulate all of your claims in writing and to describe them with as much detail as possible in order for the mistake to be quickly found and fixed. It would also greatly help you to add any documents, that can prove your claims such as receipts, tickets, notes, invoices etc. In the end, don’t forget to make copies of everything you noted plus all the other documents you attached to your dispute letter.

After you file your credit report dispute, an investigation will begin and your claims will get assessed in order for their validity to be proved — usually within 30 days. If after the investigation has taken place, your claims will be proven true, then any inaccurate information specified in your dispute letter will be mended which will eventually be reflected in higher score.

If you need additional reading, here’s a good article by FTC on how to dispute credit report.

Bear in mind that although by law, you’re entitled to receive a free copy of your credit report annually from any of the 3 credit reporting bureaus, this free report will not reveal your actual credit score. To view the actual score that the lenders are seeing, get your score (plus 3 in 1 credit report) from freecreditscore.com for a free trial.

If answers to all the questions are “yes”, then it is time that you should take some initiative to improve your credit and get out of this credit problem.

How to improve your credit score

To get out of credit problem, you have to improve your credit report. To do this, you can either take help of a professional credit repair company or you can settle your debt on your own. If you select a company you should check its reliability and authenticity among the enlisted companies under Better Business Bureau (BBB).

If you want to repair your bad credit on your own, you should follow the steps mentioned below:

1. Get your credit report: You should get a copy of your credit report from the three credit bureaus, Equifax, TransUnion and Experian (used to be TRW credit report), and check whether or not there is any wrong information regarding your credit history. If you find any such thing, you should immediately contact the bureaus and have it corrected.
2. Prepare a budget: You should prepare a financial budget based on your monthly income and expenditure, so that you can save more money each month and can pay off your debts within a short time.
3. Contact your creditors: You should contact your creditors and negotiate with them so that they reduce your monthly payment, by lowering the interest rate and waiving off charges towards late payments. You can also opt for debt settlement and reduce the outstanding balance by 40-60%. You should make sure to put the new terms and conditions in a written document.
4. Pay off your debts: Once you have settled a mode of payment with your creditors, you should start to pay them and make sure that your payments are recorded in your credit report.

If you have a bad credit, it will be difficult for you in getting a loan, buying insurance and even getting a job. So, you should not lose time to get out of this credit problem and lead a financially free life.

Under the new rules, any site that advertise free credit reports must include a prominent disclosure notice across the top of each page that mentions the free report, stating

“The notice is required by law and you can read more at FTC.gov. Also: You have the right to a free credit report from AnnualCreditReport.com, or by calling 877-322-8228, the only authorized source under federal law.”

Web sites that advertise free credit reports but require consumers to sign up for monthly credit monitoring subscriptions, or other services in exchange for the report, will now have to change their marketing message.

This is to avoid the confusion between these “free” offers that come with strings attached AND the government’s AnnualCreditReport.com where you’re entitled to one free credit report per year without any string attached whatsoever.

Free Credit Report isn’t Your Credit Score

While AnnualCreditReport.com is the only website authorized to give out annual free credit reports, this free credit report is NOT your credit score or FICO score that creditors or lenders used to gauge your creditworthiness.

Your credit report is only a rundown of your personal information, credit accounts, current obligations, credit inquiries and your payment history. It is based on these information your score is computed.

To view the actual score that the lenders are seeing, get your score (plus 3 in 1 credit report) from freecreditscore.com for a free trial.

Not until I got an advertisement email that focuses primarily on “Understanding Your Credit Report”, and of course I read on and found out various important aspect in my credit activities.

A credit report is a record of all your finance activities whether it is a loan acquisition, credit card application and all sorts of money matters that involve you. It also keeps track of how you use your credit and also the promptness whenever you make your monthly payment.

Understanding your credit report may help you consolidate every aspect of your financial condition. These reports will definitely reflect and can be used as reference by various credit institutions in the evaluation of your credit card application.

What does your Credit Report say about you? Check yours at CreditReport.com

What’s in Your Credit Report

1. Personal information: It contains your name, social security number, birth date, spouse’s name, current and previous addresses, phone numbers, and even your employment records.
2. Credit information: This section lists all the accounts that have been reported by various institutions with which you have established a credit relationship; eg, credit cards, loans, mortgage, phone companies, insurance companies, or any other lines of credit.
3. Banking information: Any bank account you have, including any NSF (non-sufficient funds) or “bad” cheques you may have written.
4. Public records: A list of public record such as a bankruptcy filling or a credit-related court judgment against you in a lawsuit. Secured loans, which are backed by an asset i.e. your property, may also appear in your credit report.
5. Collection information: This shows whether you ever had a debt that you could not pay, which was referred to a collection agency for payment.
6. Consumer statement: Any statement you may have made to explain a particular situation, such as a dispute with a financial institution or a fraud warning.
7. Credit report inquiries: A list of all of the people who have inquired about your credit: including yourself, a lending institution, or any other credit institutions.

Although your credit report may include vital information regarding your personal data it does not necessarily keep track of your religious inclination, race, health records, standard of living, political involvement, personal setting and criminal documentation.

Discrepancy within any of your information or records shall be immediately filed for evaluation and reconfirmation to the Credit institution concern, you may also include pertinent documents and supporting papers that may help clarify any flawed data to be corrected.  Disputed entries are evaluated within 30 days; the law allows deletion of any inaccurate information in your records if the credit institution is incapable of confirming its validity.

Mistakes in your credit report can cost you! Check it for accuracy.

Being prepared gives you a better chance of withstanding any future problems that may arise and affect your situation, or better yet understanding your credit report score now can give you a better perspective with regards to your financial standing and take necessary steps to improve your credit score when needed.

You may also request your free reports from these credit institutions — Experian, Trans Union and Equifax  — to aid your queries in understanding your credit report. However, note that this free credit report is NOT your credit score or FICO score that creditors or lenders used to gauge your creditworthiness.

To view the actual score that the lenders are seeing, get your score (plus 3 in 1 credit report) from freecreditscore.com for free.

Annual Credit Report.com is the only website authorized by the Federal trade commission to provide you with your free credit report annually from all three credit bureaus.

Here’s how to get your free credit report online?

1. Go to AnnualCreditReport.com
2. Identify your state of residence and click on it. Then enter your name, date of birth and social security number.
3. Choose which credit bureau you want the report from - Experian, Equifax, TransUnion or all three.
4. Now you will be directed to the individual credit bureau’s website.
5. Create a special user name and password and answer 3 confidential questions to verify your identify
6. Once you are finished come back to AnnualCreditReport.com and follow instructions
7. Your credit report will be viewable online immediately!

Alternatively, you can go to each individual credit bureau’s website.

In order to better manage your finances, it’s advisable to monitor your credit report on a regular basis, preferably every 3 to 6 months. But keep in mind that this free credit report is NOT your credit score or FICO score that creditors or lenders used to gauge your creditworthiness.

Your credit report is only a rundown of your personal information, credit accounts, current obligations, credit inquiries and your payment history that determines your credit score.

To view the actual score that the lenders are seeing, get your score (plus 3 in 1 credit report) from freecreditscore.com for free.