What is a Credit Report?
A credit report, which can also be defined as a credit history, presents a record an individual or institution’s borrowing and payment track record. Information regarding tardy payments and bankruptcy are incorporated within a credit report as well. Credit inquiries on the report includes the names of individuals or institutions that have conducted inquiries such as employers, lenders and landlords. Public records are featured as well detailing legal information such as state and county court records, monetary judgments and tax liens.
What is a Credit Score?
Credit scores are rendered as a numerical expression based on the information provided by credit reports sourced from credit bureaus. Credit scores are useful to evaluate the potential risk of an individual or institutions in terms of extending loaned money. A sound repayment history will help bolster the score of an individual, whereas the opposite precipitates poorer score readings.
What are Some Reputable Credit Report Bureaus?
The top three reputable credit report bureaus are Equifax, TransUnion and Experian. These bureaus will provide with a free copy of your credit report on request, once every 12 months. Accuracy and privacy of all information is the prime concern of these bureaus. Depending on the agency you select, your credit history may vary which simultaneously affects your credit score. Another focal point is that as time passes and your life circumstances evolve, your credit score evolves continuously. Different agencies utilize different models to calculate credit scoring which can result in different evaluations of credit risk for the same consumer.
What Should I do if there is a Mistake on my Credit Report?
If you find a mistake on your credit report, then you have two options to correct the matter. First of all you may directly contact the particular company which has reported inaccurate information. Or, you may file a dispute with the particular credit bureau in question.
Why are there inconsistencies between the reports provided by the three major credit bureaus?
The three major nationwide bureaus do not share information with one another regarding your credit history. Thus, this can lead to differentiations for various consumers. The data collection process of these three bureaus also differ, which can precipitate irregularities in reporting information in terms of your credit status.
Will Ordering my Credit Report Hurt my Score?
No, ordering a credit report will not hurt your score. Credit report requests can be classified into soft and hard inquiries. Soft inquiry will not affect your credit report, whereas hard inquiries refer to a review process of your credit by any other company as part of a loan application. Excessive hard inquiries may decrease your credit score significantly.
Is the Transaction Safe?
The transaction is technologically safe, as the process is executed through Secure Socket Layer (SSL) encryption. This modern technology assists in protecting your credit card transaction as well as any other sensitive information related to this transaction.
What about My Privacy?
Security and privacy are valued highly by the bureaus which process your credit report requests. When you process your order, your identification is verified and remains secure in the system. Consequently, you may have secure access to credit report as well as credit score. The security system is bolstered so that no third parties have access to compromise or resell your credit information.
What is the Fair Credit Reporting Act?
The Fair Credit Reporting Act (FCRA) is as a federal law, which regulates the dissemination, collection and consumer credit information. The law, passed by the U.S. Congress, poses restriction on accessibility of your credit information, which protects your privacy and security, prohibiting third party access.
What is the Fair and Accurate Credit Transaction Act?
This transaction act was signed into law in 2003, and can be described as a revised version of the Fair Credit Reporting Act. This transaction act facilitates the ability of the consumer to receive a free credit report once every calendar year by one of the three major bureaus.