How to Get a Free Copy of Your Credit Report

The information available on your credit report decides whether you will be able to get credit card, loan or a mortgage. The information available on your credit card can even play a big role in chances of being able to buy a home or earn a job. According to passage of Fair and Accurate Credit Transaction Act (FACTA) in December 2003, the consumers can get a free copy of their credit report from each of the three credit reporting agencies TransUnion, Equifax and Experian every year via request. There are many website that offers you free copy of your credit report but most of them are scams. You can use this privilege by getting a free copy of your credit report and use that report to monitor your credit history. Here is how you can get your free copy of credit report under FACTA:

1. Via Phone: Make a call to the number 877-322-8228


2. Online service: Get a free copy of your credit report online from website www.annualcreditreport.com


3. Via mail: You can get your credit report via mail by printing a request form (https://www.annualcreditreport.com/cra/requestformfinal.pdf) and mail that form to the address listed on the form

It is not advisable to request a free copy of credit report to all of the credit reporting agencies separately. With free credit report, you will not get your credit scores for free. Your credit scores are not part of this offer and you have to pay for this service.

Other situations when you have access to your credit report for free

There are some other situations when you can get a copy of your credit report for free. All of these instances are outlines in the FCRA (Fair Credit Reporting Act) passage and these situations are:

1. You have been the victim of identity theft and there are errors in your credit report.


2. You don’t have a job and looking for a job in the next 60 days


3. You are on a welfare


4. You have been denied for credit insurance or job based on the information available in your credit report. You can request for a free copy of credit report within 60 days from the date you know of the denial. The company will send you a notice with information including Credit Bureaus contact information that provided the report used in making decision.

All about credit inquiries

Credit inquiry is an item on a credit report that shows copy of credit report has been requested with permission by a business. To be very exact 10 percent of consumer credit score is determined by the inquiries made on their credit reports. All of credit inquiries are added to a customer credit report when a business demands for a copy of his/her credit report. According to The Fair Credit Reporting Act, there are some acceptable reasons within which businesses can request a copy of a consumer credit report: to grant credit, for collecting debt, in case of Underwrite insurance, Employment, License issuing and for legitimate business transactions. There are two types of credit inquiries hard and soft inquiries.

Credit inquiries on a credit report can indicate a borrower risk factor. In case, there are too many credit inquiries to a consumer report, it means he/she is in some financial trouble and is in dire need to credit. Greater amount of credit inquiries to a consumer can lower his/her credit score.

If you have a long credit history, an additional credit inquiry might not affect your credit score. But if you have a small credit history with fewer accounts, an additional credit inquiry could lower your credit score by few points. Credit inquiries are listed on a consumer credit report for the next two years. But the credit score is calculated on the basis of inquiries made in the last one year with the recent inquiries have the bigger impact.

Do you know the worst things about your credit report?

We as a human being make lots of mistake in our daily life. And making mistakes in credit handling is not an exception. But there are some mistakes that can be so harmful that you never want them to enter in your credit report. Since the creditors and lenders make decision about your credit request after checking your credit worthiness from your credit report. So there are points you will never want to see in your credit report and showing up to the creditors:

1. Charge off or pay off


2. Fair debt collections


3. Bankruptcy
   

   Bankruptcy is a legal process in which the debtor asks the court for relief from its creditors and lenders. After the debtor has filed for the bankruptcy, the court will discharge the debt, propose a payment plan or dismiss the case. Bankruptcy stays on a Customers credit report up to 10 years from the date of your file for bankruptcy.



4. Facing Foreclosure
   

   Foreclosure is a legal proceeding in which the bank can take possession of and sell a mortgage property of the debtor in case he/she doesn’t meet the contractual obligations. When the lenders to recover the amount of mortgage, that can severely damage your credit history, are foreclosing your home and you will have little chances to get new credit in the neat future. Foreclosure remains in a customer credit report for seven years.



5. Tax lien
   

   Tax lien is the right normally by county, state or federal Government, to take possession if the property due to a delinquency on property taxes or income taxes. When we don’t pay property taxes on our home and other piece of properties, the Government can grab our property and auction it to get the unpaid taxes. Although your home is being foreclosed for tax lien, you still are responsible for mortgage loan. Non-paid mortgage is going to hurt your credit history. Paid tax lien remains in your credit report for ten years and unpaid tax lien remain in your credit report for 15 years.



6. Lawsuits or judgments
   

   Lawsuit is an order to pay certain amount of money to someone who has files a court case against you. In case the creditor, lender, attorney, debt collector or some other party files a lawsuit against the debtor and wins, then the judgment is being made against the debtor. The judgment goes start into your credit report and stays there for the next seven years from the date the lawsuit was filed against you.

Fair debt collections

The debt collectors are well known for their sneaky tactics they apply to collect debt from the customers. Many collectors just get away with their underhanded tactics because most of the customers are unaware about the laws dictating how the creditors can deal with them and how they cannot and how they can collect their money from you.

The Fair Debt Collection Practice Act also known as FDCPA is a federal law that governs the actions of parties working as credit collectors for personal debts like auto loan, home loan, medical bills and your credit card accounts.

Things not allowed to credit collectors under FDCPA act

When your creditor uses some third party to collect debts from you, that third party is bound to work according to FDCPA rules. There are many things that credit collection agency cannot do under FDCPA rules

• Calling you before 8am or after 9pm


• Making call to you at work


• Abuse, oppress or harass you


• Lie to you or try to imply that you have committed a crime


• Using unfair ways to collect debt from customers


• Hiding their identity on the phone


• Ignoring your request about stopping further contact

Communication Guidelines to follow

The law also makes it clear how the debt collector will communicate with the customer and other people. The FDCPA has given some guidelines according to which the debt collector has to behave with the person except the debt collector. The debt collectors are refused to inform about your debt to any anyone except you and your spouse. Even they are not allowed to call you owe a debt.

The debt collector is also not allowed to communicate with you via post card or some symbol or language used on an envelope that shows that they are debt collector. And once the debt collectors are aware about the fact that you are being represented by an attorney and have the contact information, they have to communicate with attorney.

Debt collector cannot use any form of harassment or abuse while trying to collect debt. They are not allowed to use any form of violence against the debtor, their property or their reputation. With this, the debt collector is not allowed to use obscene language while communicating via phone or mail with the debtor. Even the collection agencies and their collector cannot publish a list of customers who haven’t paid their debt except while sending it to consumer reporting agency.

What to do when your rights are being violated

In case your rights are being violated under the FDCPA act; you can file a lawsuit against the debt collector within a year from the date of violation. You could get up to $1,000 in addition to actual damages and attorney fees.

Ex-hospital employee sent to jail for identity theft

An ex-employee Robin A. Hayes at medical Center was sent to jail for 39 months for stealing the identity information out of patients files.

With this Hayes was asked to pay $3,320.44 as compensation to two victims. According to Federal authorities, Hayes admitted her crime of stealing identity information from the patients files while she was an employee in the hospital. She used all of those identities to open new credit card accounts as a secondary user and had delivered all of those credit cards to different addresses she used throughout the Panhandle (Via NewsHerald.com).

What is Charge off?

Most of us think that when a debt has been declared Charge off or pay off by the creditor, it has been canceled. But this assumption is totally wrong. In case of being "Charge Off", you will still have to pay the existing debt but will not be able to your credit cards for further purchasing.

Creditors and lenders have benefits and losses as well. They make money from profits and lose money from losses. When the creditor or lender has declared your account as "Charge off", it is declaring that your account is no longer an asset for it but it is a loss to the company.

Although the creditor has accepted you as a loss to its financial records, yet it will not let you get away free. It will add a negative entry to your credit report in the form of charge off and will keep on making efforts to collect the debt from you.

Any credit account is normally charged off after 6 months of less than minimum payment. The Charge off status remains in your credit report for the next seven years in normal cases. And in case you pay the debt, the status will be changed to “Charge off paid” or “Charge off settled”. Either of the situations is not desirable but is better than being Charge off.

To remove the charge of status from your credit report, you have to wait for the next seven years from the day of being charge off or make some settlement with your creditor to remove the “Charge off” status from your credit report after you have made the total payment.

3 in 1 credit report and its usability

No one will be contented to see just one third part of their medical report or the inspection report about their car. So why should we be satisfied to get just one credit report out 3 available. Single credit bureau report may not be covering the all aspects of your credit worthiness. So to get the complete view of your credit history, 3 in 1 credit report will be the best option.

Before taking a loan, the lender what exactly he does check your credit worth ability. There are three major type of Credit Agencies that check or count your credit score and update your credit report from time to time. Generally borrower goes to one credit agency to update the credit report. May be some lender go to the particular bureau and some lender may opt for another bureau. So there is little bit confusion that which credit agency borrower has to choose.

The evaluation of credit standing is done according to the need of lender. If someone choose only one credit bureau to update his credit information it’s not sufficient. Because One Bureau could miss out any important information that can be a great impact on his credit report. In such case 3-in- 1 credit report help borrower to update right and correct information.

Why we need 3 in 1 Credit Report:

1. Such type of credit report gives a comprehensive look to report that how lenders see it.


2. It also help borrower to escape identity theft.


3. It helps you to improve your credit worthiness and complete all your debts.


4. It helps to give us the accurate credit report


5. It’s enhancing the financial strength for a borrower.

By using such type of report a potential lender can check your credit information and all related information directly. Almost 70 %( According to U.S. PIRG) of agency having error while updating the credit report that 3 in 1 Credit report reduce such type of risk. And not also your 3 in 1 credit report gives you information but it’s also providing you a clean and understandable format. Other side you can go for comparative check if you are having all three reports in your hands.

What necessary information a credit report have:

1. Any credit account that has been opened by your name


2. Subsequently checking by credit agencies or lender that has been done time to time


3. Any other loan e.g. home loan, Personal loan that you have taken in past


4. A complete breakdown for your payment history


5. A line by line comparison report that all three credit agency done based on your existing information

Why 3 in 1 credit report is better than a single credit report:

These three credit agency having different type of information which they gather based on exist data and they don’t share all information to each other. So the Personal and Financial information that a credit agency is having may not be same that other credit agency having. A 3-in-1 credit report lists all of your credit accounts, which allows you to quickly view how all three federal credit bureaus are reporting your credit.

There are so many sites where you can get it 3&1 credit report that could be free or there may be some charge to view the same. 3-in-1 credit report is the way to move forward if you are to avail a loan. But be sure that you seek the report from an online agency, as the report generation is fast.

Different credit score?

To determine your credit score, credit bureaus use five factors namely payment history, level of debt, type of credit, credit history length and applications for new credit. Each of these factors has a role in deciding your credit score with payment history playing the biggest role.

Since there are three different credit reporting agencies, it’s possible that you receive different credit score from each of credit bureaus with each using different models for calculating your credit score. All of three major credit bureaus Equifax, Experian and TransUnion operating separately and not all financial institution reporting to all of major credit bureaus, it’s quite possible that the you have different credit history with all of credit bureaus. And this difference in your credit history will be visible in your credit score as well. So depending upon the information credit bureaus have about your credit history, your credit score can vary greatly from one credit bureau to another.

It is not only the information about your credit history but also the kind of credit scoring model being used by various credit agencies may bring variation in your credit score. According to Fool.com, Equifax is the only credit reporting agency that is selling the credit score to the consumers and the term being used to refer to credit score is BEACON by Equifax. Equifax credit score range varies from 350-850.

Experian and TransUnion use the Fico scoring model to calculate a consumer credit score. Experian credit score is known as Experian/Fair Isaac Risk Model or PLUS and its score range varies from 330-830. TransUnion credit score is known as EMPIRICA and its range varies from 300-850.

Mother and Daughter arrested for changes of identity theft

Two women accused of identity theft were arrested in Benton County on Monday. 55 years old mother and 36 years old daughter were accused of opening $24000 line of credit by someone else name.

Both mother and daughter were at the Sears trying to pick the goods they had already purchased of worth $16000. Their purchases include:

"There were electronics, large screen plasma televisions, Apple iPods," said Chief Layne Erdman, of West Richland Police. "Also they were going to pick up a treadmill that they were unable to pick up because we arrested them, there was some fitness equipment in there and there appears to be some furniture purchases, so pretty much setting up house," he said.

Credit report security freeze explained

Definition of security freeze

Security freeze is the best alternate to prevent someone from borrowing and opening new accounts by your name. When someone to open new accounts or to borrow money uses your personal information that’s known as identity theft. Security freeze is a notice that is placed on a consumer credit report upon his request that prevents the credit reporting agencies from sharing the consumer credit information to a third party without his/her permission. Credit reporting agencies such as Equifax, Experian and TransUnion can inform the third party that the security freeze has been placed on the consumer credit files.

How to add security freeze to credit files?

In order to place security freeze on your credit files, you have to write to each of the credit reporting agencies like Equifax, Experian and TransUnion for putting a freeze. Here are their mailing addresses to write to:

   Equifax Security Freeze
      P.O. Box 105788
      Atlanta, GA 30348

   Experian Security Freeze
      P. O. Box 9554
      Allen, TX 75013

   TransUnion Security Freeze
      P. O. Box 6790
      Fullerton, CA 92834-6790

All of the credits reporting agencies allow consumers to request security freeze via certified mail and there are some additional methods by which you can request credit agencies to place a freeze on your credit report. When you are write to credit agencies, don’t forget to mention your name, your current address, social security number, date of birth, copy of police report in case you are the victim of identity theft. To know more about each credit agencies policies about security freeze contact them.

Once the security freeze has been added to your credit report, it’ll take 10 business days for the credit bureaus to mail you the PIN (personal identification number). This PIN will be used in future for making any changes to your freeze status.

How much to pay for adding a security freeze?

According to the laws credit agencies can charge up to $10 for placing, temporary lifting and permanent removal of security freeze. You will not be paying anything in case you have been the victim of identity theft and have attached the police report document with your freeze request. In case you lose your PIN, the credit agencies may charge up to $10 for replacing or reissue a new PIN.

Equifax requirement and fees for security freeze here

For Security freeze via Experian here

For complete information about the fee, securities freeze Faq via TransUnion here

How long it take for the security freeze to become effective?

After the credit reporting agencies receive your certified mail, they have 5 business days to complete your request.

Opening new account with security freeze on my credit files

Yes, it is possible for you to open new account or make a request for new credit. But before that you have to request credit agencies to temporarily lift the freeze on your credit files. When you asked the credit agencies to freeze your credit report, they must have sent you a PIN and the instructions about lifting the freeze. So you can use this PIN to lift the freeze via phone. It takes 3 business days for the credit agencies to lift the freeze on your credit files and they can charge up to $10 for this temporarily lifting.

How long a security freeze will remain effecting?

Security freeze will remain on your credit files by the time you don’t request for its temporarily or permanently lifting.

Will a creditor have access to my credit files in case they are frozen?

No the creditors will not have access to your credit files. The only thing that the creditors will get is a code or message indicating that the files for this consumer have been frozen. But the certain entities like existing creditors; collection agencies will still have the access to your credit report. These agencies can review or collect on your account.

Need to get a freeze from all credit reporting agencies

Yes, you have to freeze your credit reports from all of the major credit reporting agencies. Different creditors use different credit agencies report to check your credit worthiness. So in case you want to freeze your credit report from everyone, freeze it from all three major credit-reporting agencies Experian, Equifax and TransUnion.

My credit score will lower when I have frozen my credit reports?

No. The existing creditors will still have access to your credit files and are able to report your credit behavior.

I still will be able to get my credit report with security freeze in work

Yes, you will still have access to your credit report and can get it from credit reporting agencies when you want to them.

Employers will have access to my credit files when they are frozen

No. You have to lift the freeze on your credit files to allow them your background check.

Security freeze Vs fraud alert

A fraud alert is a message available on a consumer credit reports that the creditors receive when checking their credit rating. This alert tells the creditors that there may be some fraud involved in this account. When a consumer has fraud alert on his reports, it slows down his ability to get new credit. On the other hand, security freeze prevents creditors, insurance companies or employers from checking your credit files. Most of the business companies will not offer you new credits or new accounts before checking your credit history.

How do I read my consumer credit report?

Once you have your consumer credit reports in hand, you should review them carefully. The reports from each of the consumer credit reporting agencies differ in format, clarity and completeness. Some are easier to read and understand.

There are several critical pieces of information you should check for in every report you receive:

1. Verify that all of the information about your identity is correct. Check to make sure there are no errors in your name, address, current employment and social security number, or in any other personal information such as your date of birth or the name of your spouse.


2. Make sure that debts charged to you are truly yours. Check to make sure that there are no accounts, debts, bankruptcies, tax liens or other judgments that do not belong to you or are still listed as open even though they have been resolved.


3. Make sure your payment history and balances are accurate.


4. Verify that errors you successfully disputed have been corrected.


5. Check that information is accurate and not misleading. Make sure that the status of your accounts is correct. Some accounts may be inaccurately marked as delinquent or in collections.


6. Make sure that your information reported by each of the three bureaus is complete and consistent.

Maryland residents access to credit report freeze

From now residents at Maryland will have the right to freeze their credit reports. According to a law that took place yesterday, Maryland joined 35 other states and the districts of Columbia that that allow the residents to place a security freeze on the sensitive information about their credit score. Five other states allow this facility to the victims of identity thefts only.

The security freeze on consumer’s credit reports saves them from identity thefts from opening fraud accounts by their names and getting new credits. With the security freeze in place, the credit reporting agencies cannot release consumer credit information without his/her permissions. Although this law doesn’t prevent existing banks and credit card companies from accessing consumers credit files for legitimate purposes.

The credit reporting agencies Equifax, Experian and TrnasUnion are allowed to charge up to $5 for adding security freeze to the consumer’s credit files. And this service will be free of cost for the victims of identity thefts.

According to FTC (Federal Trade Commission), Maryland is ranked 11th in the nation among the accidents of identity thefts with 10080 fraud cases taking place in 2006.
Maryland has already taken some steps to avoid the cases of identity thefts. Social security numbers were removes from the paychecks one year back.

Things you should have be aware about before getting a credit report

Before going for getting your free credit report there are some points that must be very clear to you like your financial information, how to get your credit report and which companies/company to chose to get the reports/report. So here is the detailed list of things you must be worry about before getting free credit report:

1. Keep your financial information with some of your earlier addresses, as they may be required when you go for getting credit report as a way to verify your identity.


2. Your credit report information can vary from one credit bureau to another, as most of the companies do not report your information to all of three credit bureaus. They may prefer to report to just one or two of them.


3. Often Lenders and creditors who are willing to do business with you, check your credit worthiness from one of the credit bureaus only. And incase there are some inaccuracies or errors in that credit report, that can have really bad impact on your reputation.


4. Consumer Union recommends that one should not get credit report from all of three credit bureaus at a time. They should look to get it after every 4 month from the credit bureaus i.e. get one from Experian today, then get it from Equifax after 4 months from today and then get the last one from TransUnion four months after that date.


5. But the Motley Fool recommends that you should get all of your first credit reports at a time and then look to get these reports after a interval of 4 months one at a time.