Getting Your Credit Report

The information in your credit report has a huge impact on whether or not you qualify for a mortgage loan and what interest rate a lender will offer. Therefore, its important your credit report reflects a positive image of the way you manage your money. If you're getting ready to buy a home, checking your credit report is the best way to ensure you get the loan and interest rate you deserve.

The easiest way to see whats in your credit report is to contact the three national credit reporting agencies Equifax www.equifax.com,
Experian www.experian.com and TransUnion www.transunion.com - and request a copy from each. Thats because the three agencies are independent of each other and the information may differ on all three reports. In addition, you may not know which agency your lender will use to check your credit, so its best to verify that all three have correct information about your credit history.

If you've been denied credit, insurance, or employment because of information in your credit report from any of the three agencies, you can obtain a free credit report by contacting the agency within 60 days of receiving a denial notice. In addition, you're entitled to a free copy of your report each year when you certify in writing that (1) you're unemployed and looking for a job within 60 days, (2) you're currently on welfare, or (3) your report contains errors due to fraud. Otherwise, the agencies charge a fee for a copy of your report.

For additional fees, each agency may offer you different report variations, such as:

• A credit report with or without your credit score.
• A three-in-one credit report that lets you see a side-by-side comparison of records, from all three agencies, with or without scores.
• Notification services when your credit history is requested.
• Routine notification changes to your file.
• Subscriptions that allow you to access your report on a regular basis.

New law promotes free access to credit reports

The Fair Credit Reporting Act (FCRA) now requires each major credit reporting agency to provide you with a free copy of your credit report once a year if you request it. This is regardless of your employment or financial situation. The web site to request a report is www.annualcreditreport.com. 

You can request that the report include reports from one, two or all three credit reporting agencies. It might make sense to get a single report from only one agency now, and obtaining a copy from a second agency in three or four months. Then in another three or four months, request a report from the third agency. That way you will be checking your report for errors at different times throughout the entire year.

Whether you are thinking of buying a home or simply curious about whats in your credit report,  its important to correct any errors you discover as soon as possible.  You do not want errors in your credit report affecting your eligibility for credit in the future.