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If you are concerned about your credit, you've probably noticed there is a lot of confusion about credit scores and credit reports.
First, you should know that your credit score is derived from information that is found in your credit report. Indeed, it is likely that you will have three separate credit scores, each one a result of information within your credit report from each of the three major reporting agencies: TransUnion; Equifax; Experian. Because they have different information, their scores will also differ as well. This is the reason why banks and other lending institutions consider all three scores for a composite analysis (based on their internal policy).
Second, under federal law you're entitled to one free credit report at least once a year from each agency. You should obtain each of the reports online with the three reporting agencies (mentioned earlier). Also, it is best to spread your request for each credit report four months apart to keep abreast of your credit history. For example, request a report from Equifax first; then four months later, request a second report from TransUnion; and then four months later, a third report from Experian. Each of these reports should be free.
And third, you should look for errors on your report and correct them. Requesting the removal of errors will have an immediate, positive impact on your credit score. Once this is done, then you should request a credit score, especially if you plan to obtain financing. If you do this, it will help you determine the cost you may be facing when seeking or renegotiating financing.
Also of great confusion at large is the cost for your credit score. Unlike the credit report (which is free annually per agency), you will be charged for your credit score. If you join a credit tracking service (the typical charge is approximately $15 monthly), you can probably get your credit score at no charge. Just understand that credit tracing services provide a 7 to 15 day trial, after which you will be billed monthly until cancellation.
If you've already applied for financing, the financial institution you've applied to should, upon request, provide you with your credit scores at no cost (whether you're application has been accepted our not). As previously mentioned it is good practice to know your scores before applying for any financing or refinancing.
Free Credit Report Online
Now let's touch briefly on a practical matter. It is possible, at times, for the credit agency to claim that you've already received a free credit report, and therefore have to pay a fee. Here is a list of suggestions for you.
First, if customer support is an out-of-country support department, request immediately to be routed to an in-country support department. Just by doing this, you could save yourself tremendous frustration when trying to resolve any problem.
This problem generally occurs when using a common service like AnnualCreditReport.com which might have sent improper or incorrect report request information to the major reporting agencies (TransUnion, Equifax, Experian).
Second, while you are on the phone with customer service (for any of the three reporting agencies) you should request a free report online. This might very well avoid the delay in receiving your credit report, and possible lost reports in the mail.
And third, while trying to contact Equifax (which seems to have a majority of the problems), it is best to dial their manned support line (as of Jan 2009): 888-265-8807. Please be aware that whichever agency you deal with, it is best to use a manned line (vs. an automated line); this will help you resolve issues quickly.
Disclaimer: All information on this site is provided for informational purposes only! By no means is any
information presented herein intended to substitute for the advice provided to you by any health care or other professional
or organization.
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