FREE ANNUAL CREDIT REPORTS:

MAJOR BREAK THROUGH FOR THE CONSUMER:  ANNUAL CREDIT REPORT

On December 1, 2004 the free annual credit report is now in effect after Congress passed the Fair and Accurate Credit Transactions Act of 2003. That means the three major credit bureaus are required by law to issue free annual credit report once a year. Consumers can request their annual credit report online, by telephone or mail.

CREDIT REPORTS VS CREDIT SCORES

Here is the main difference between credit reports and credit scores.

Credit reports are historical summaries that report credit limits, payment histories, past due accounts as well as public records. It comes in the form of a hard written report that you can use to save for your records.

Credit scores on the other hand rate consumers from high-risk to low-risk. The higher the score, the lower the risk.

IMPORTANCE OF THE CREDIT SCORE

The importance of credit scores can qualify consumers for lower interest rates, saving them hundreds of dollars in interest. Credit scores are also used by the insurance industry. Employers are even use them to qualify job candidates to for various qualifications that companies require.

HOW DOES THE CONSUMER BENEFIT

The major benefit behind a annual credit report is that a consumer can see what is being reported and find errors to try to correct. But without the credit score they cannot see how that information is interpreted. That is the most valuable of all because that is the only number lenders look at.

FREE ACCESS NOW TO PROTECT YOUR CREDIT

After taking steps to improve and clean up credit history, you will have to order your report to check if score improved. And yes you have to pay for it this time but it is certainly worth the small cost to check our credit reports frequently. We need to be sure our credit information is well protected. In the real world identity theft is at work so we need to be on the alert. Also once you audit your own report you notice that your credit actually needs to be updated and even disputed if the reporting is incorrect.

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