3 Credit Reports for Free
A person’s history of credit is extremely important especially if the individual would like to apply for a mortgage loan, bank loan, employment, etc. An individual’s credit history is not only important to him or her, but a lot of other companies and people are interested in it as well, such as: banks, utility companies, mortgage lenders, possible employers, etc. It’s vital to understand one’s credit score, credit report and the agencies that gather the credit data – credit bureaus.
Each consumer or individual has the right to request a 3 credit reports for free, under the Fair Credit Reporting Act bill that was passed in 2003. The bill mandates that reporting companies like TransUnion, Equifax and Experian provide a consumer with a free credit report at the consumer’s request. The consumer can request their 3 credit reports for free every 12 months.
A person’s credit reports contains a person’s information on where he lives, how he pays his bills, whether or not he has been arrested or sued, or if he has ever filed for bankruptcy. The companies who report consumer credit sell this data to insurers, creditors, employers, potential employers and other establishments in order to evaluate the individual’s credit when applying for employment, renting a home, applying for credit and/or insurance.
Information on Credit Reports
In addition to the information given above, an individual’s name and Social Security number will be included in the report. The consumer’s current credit status, such as mortgages, credit card accounts, student loans, car loans, etc. may be of great importance for other reasons. In addition, it may also have how much the consumer owes his creditors, the terms of the credit and the payment history. There will also be the information about the consumer’s public record as to whether there are any court judgments against him, whether he has filed for bankruptcy or if there are any liens against his property.
The fact that consumers can receive 3 credit reports for free is important in that the consumer should be aware of what is on his or her report. To have the free report is helpful information to the consumer because lenders could use his credit information to determine if he can get a loan and what the terms of the load would be. Insurance companies will want to see the credit reports because they use that information to help them determine whether the consumer can obtain insurance and at what rate.
Even the utility and telephone companies may want to use the consumer’s credit report for decision making on the services they may provide.