Totally free credit reports and obtaining the same
The free credit reports can be availed through Trans Union, Experian, and Equifax credit reporting bureaus. These three bureaus are the three main crediting bureaus in the United States. As per the FCRA these bureaus are entitled to give all citizens of the U.S, a free credit report. These free credit reports can be applied for at different time intervals. Usually each agency sends a free credit report to debtors in every 12 months. Hence by getting these reports at separate time intervals the debtors can get a free credit report, in every 4 months from either of the credit bureaus. These reports can be obtained online or through post.
Importance of credit reports
The credit reports are an essential part of regulating your finances. These credit reports are based on factors like debts owed, debts cleared, payment history of debtors, length or duration of loans, number of loans taken, types of loans and other related factors also. Checking these reports help the debtors to find errors and misinformation on the credit reports. There are chances of negligence by the operators who prepare these reports. Then there are also chances that the lenders fail to provide information about cleared debts to these bureaus. Hence previous debts are still not rectified on these reports. Credit reports are also the determining factor for credit scores. Hence any errors on these reports will also reflect on the credit scores.
Credit reports and credit scores
The credit reports are one of the major factors which determine the credit scores. Credit scores are basically the numerical expressions which are computed on the basis of the credit reports. Credit reports include the details about the payment history while the credit scores depict the same through numbers. Hence by obtaining and checking the credit reports debtors can also reduce the chances of errors on the credit scores.
Instant improvement in credit scores
The rectification of errors on the credit reports reflect immediately on the credit scores. As per the FCRA or the fair credit reporting act, all disputes regarding the errors on credit reports should be resolved quickly and a new credit report, with the changes made, should be sent to the debtors. While disputing any errors, debtors should always send a copy of the bill or payment made along with the credit report. This also helps to reduce the time taken in resolving the dispute.
