Know the common myths related to your credit report

Today the consumers have been really informed and vast majority of them are also aware about the credit report system or even their own credit scores. However it is astonishing to know that the there are some myths that people believe in connection to their credit reports. Some of the common ones are mentioned below:

Checking your credit report hurts your credit score

Often it has been believed that checking your own credit report and credit score will put a negative impact on your credit score. However the fact is that a soft inquiry does not go against your score. On the other hand, if anyone else like a lender or credit card company is checking your credit report, then this is considered as a hard inquiry and normally it take off about 5 credit points from your score. Moreover one should know that multiple inquiries in a 14 days period are just treated as just one inquiry in the credit score rating system. Also the system ignores all inquiries made within 30 days before the day when the credit score is computed. Therefore if you want to minimize the damage on your credit score through credit inquiries then try shopping for a loan within 14 days period.

Closing old accounts and canceling credit cards improves your credit report score

This is a very common myth because sometimes even your lenders tell you to close your old and inactive accounts in order to improve your credit scores. But closing old accounts and canceling credit cards may actually have an opposite effect with the current credit score rating system. It may leave a negative impact as it will make your credit history appear shorter and thereby lower your credit score.

Credit counseling causes harm to your score

Attending a debt management program will not cause any harm to credit score. The current FICO credit score rating system take no notice of any reference to credit counseling that may be mentioned in your file. The researchers have found that people who have opted for credit counseling have not defaulted on their debts and therefore it is not taken into consideration while tabulating credit score. However late payments can hurt your credit report and credit counseling can hurt your ability to avail a loan because you probably have had trouble paying creditors.

All credit reports are the same

Most people believe that credit reports from all the three credit rating agencies is same but it is not so. These days, most creditors across the country do report their information to all three major agencies – Equifax, Experian, TransUnion – and as they are separate firms, the method and the pace in which they update records may not necessarily be the same. So make sure you get your credit reports from all three major credit reporting bureaus before you apply for a big loan.

How to avail a credit report in Canada

Americans are not the only ones who get to know their financial status through free credit report but even Canadians can get free their credit reports through an online network. Anyone can get a free credit report if he is out of work and looking for a job, if he is on social assistance, or if he thinks that he is a victim of identity theft. Any Canadian who has been denied credit can also avail a free credit report. The CRA (credit reporting agency) which provided the information that resulted in the denial of the credit must send you a copy of your credit report if you request it.

Canadians can call a reporting agency or mail them to obtain their credit reports. Most websites offer Canadians a free 30-day trial membership. This free trial will include access to your free Canadian credit report. These reports can be viewed absolutely free for up to 30 days period and thereafter you will be required to pay for the membership unless you cancel it. Thus most people obtain a free credit report online and then cancel the membership before a charge is been levied. This is an excellent method of obtaining free Canadian credit reports online. However if you fail to cancel the membership before the expiration of the 30-day trial membership, charges will be imposed on your credit card.

Meanwhile a free credit report is extremely easy to come by if you know exactly what to do. Many people are not even aware that they have can get free Canadian credit reports. Canada uses FICO system to generate a credit score in the country. This system asks you to provide your salary, expenses, accumulated debt, rates, and more to determine your credit score. It can even be shown on card that you can find online. On the other hand, you can join many free companies that allow you to see your credit score as well as the credit reports. You can also choose to be kept updated of any changes to the report through text messages or email notification.

There are three credit rating agencies named Equifax, Experian and TransUnion that can enable you to get your credit report in Canada. All the credit monitoring services need to deal with any of them, so it is advised to check that out before you subscribe with an online company and reveal your information.

Get your credit report while sitting at home

Credit reports that records of your financial life are important for every individual to keep a check on his mistakes. But sometimes even if you want to update your credit report, it might be a hassle to keep visiting credit reporting agencies for updating them. So here the free online credit reports can help you to avoid such inconveniences. Such reports help you do the checking anytime you want by simply logging on the internet.

Free online credit reports are simple credit reports that contain information of your financial records and your current financial status. The report would include your personal details along with your credit details, any public records regarding financial matters and also the investigation made by any third party on your record. It can be obtained by simply submitting an online application form for free. Reviews are made quickly and you get your free online credit reports within seconds.

The biggest advantage while availing a free online credit report is that the services you get are timely and free of cost. You can get the report as well as get it updated at home or wherever you happen to be as long as you have internet access. They are also easy to find. You just have to browse the internet and check out the various sites which offer them.

There are three consumer credit reporting companies that provide you free online credit report by just following a simple process in the AnnualCreditReport.com.

The Process

At first, the site would ask for your name, social security number, birth-date, address, and previous address if you’ve lived at your current address for less than two years. You are then required to select a credit reporting company from where you are transferred to the chosen credit company site and the understanding will vary depending on which report you have chosen. Sometimes you can also be asked to confirm private information about your account, so you may need to dig up information on previous addresses and account numbers. You can thereby request all your three reports at the same time and make comparisons. Or else you can spread your requests throughout the year in order to keep a closer eye on changes in your report. Remember that if you wish to receive more than one credit report at the same time, you must return to AnnualCreditReport.com each time. Overall, it is a quick and simple process that enables you to know your financial status.

This method has become quite popular toady so there are many scams as well. There are many chances that your credit scores as well as your credit card information may be hacked into while signing up in a site. Therefore it is always better to sign up for a service from the leading credit bureaus as they are trustworthy.

So your can get your credit report from anywhere and anytime by just accessing the internet on your PC.

Get your free annual credit report

Today as per the law every consumers is entitled to receive a free credit report from three nationwide credit bureaus once during a year. However this is only generated on the consumer’s request. This report enables you to review the information that helps you to keep a track of your financial health and also ensure against fraud and identity theft. Therefore it is recommended to request your report from the 3 credit bureaus throughout the year, like every 4 months, rather than requesting them all at the same time.

Further the law also permits you to receive a free copy of your credit report if you have been denied or turned down for credit. The financial institution you applied to avail the credit must provide you with the name and contact information of the credit bureau they obtained your information from. You can there by contact this credit bureau within 60 days and use the information provided to obtain your free credit report.

Basically a credit report enables you to know your creditworthiness. It indicates your borrowing and repaying habits for a particular year. You can get all the required information about your credit status in your credit report. A credit report includes detailed information of a person's credit history, including personal information, credit accounts and loans taken, bankruptcies, defaults, Country Court Judgment, late payments and current inquiries.

The annual credit report is very important to be known by all because it will enable you to control your credit scores from falling down. Precautions can only be taken when you know in hand that something is about happen. So, it is better you keep a regular notice on the ups and downs of your scores. Also any fault or wrongly updated record can also be checked by keeping a regular notice. It will help you to catch the false updates easily and then there will be no fear of having a bad and deteriorated credit report. Therefore keeping all this in mind one should make every provision of collecting his free annual credit reports.

However note that one can easily avail a free credit report but remember that free report does not come along with a free credit score, the three digit number that lenders use to weigh your credit worthiness. It is disappointing that the free credit report does not come with a credit score that is considered as important as credit report by the most lenders. You have to pay extra to get the score.

So if you are still unaware of your scores then it is time for you to get a free annual credit report and know your creditworthiness before applying for any loan.

Improving Your Credit Score

Here are some steps you should take. First of all, get a copy of your credit report from each of the three credit agencies. You can do this once a year for free by logging onto Annual Credit Report.com. The first thing you need to do is correct any mistakes that you may find in your credit report. For example, the credit report may list an outstanding credit card or loan that does not belong to you.

The biggest way to keep or increase your credit score, also known as your FICO score, is to pay your bills on time. If you happen to be behind on payments, work on getting current and staying current. If you're having problems, get some help. In New Hampshire and Vermont you can contact the Consumer Credit Counseling Services. They are a nonprofit organization that has done an excellent job at counseling people with credit problems.

High balances and a high ratio of the amount you owe to the total available credit will also lower your credit score. Paying extra to get your balances down will help to increase your credit score. Remember, if you're planning on getting a new loan in the near future, don't close unused credit card accounts. This will affect your ratio and potentially lower your credit score.

Many people will move from one credit card to another to get a lower interest rate. I've been told that this too can lower your credit score by decreasing the average age of accounts.

Finally, in this day and age credit scores are important for almost everyone. Not only do they affect your ability to get a loan, they can also increase your cost for car and home owners insurance and affect your ability to gain new employment.