Free credit report and score offers are available on countless websites all over the internet but there are only four websites recognized by the US government to obtain your credit reports. These websites are annualcreditreport.com and the official websites of the three credit reporting bureaus namely TransUnion, Equifax and Experian. Here are other things you should know.
How to get free credit report and score?
When visiting the above mentioned sites, you will be asked for a few verification questions and then you will have access to your credit report instantly. There is no free credit report and score service available on any of these websites. Credit scores can be purchased for roughly $10. You can get a free credit report once every twelve months from each of the credit bureaus, other than that it has to be purchased unless you have been denied credit. Then, you have the legal right to another copy.
Do I need a free credit report and score
You need to check your credit report once a year for any discrepancies and detect identity theft. You will also want to check it months before you intend to apply for a loan, mortgage or any form of credit to see where you stand. If you are looking for a job, it will also be helpful to see how accurate your credit report is.
How important is my credit report and score
A good credit report and score is essential to saving you a significant amount of money and securing opportunities such as a loan or a job. Your credit report and score is used by lending companies and insurance companies as a basis for determining your risk factor. With it they can either reject your application or increase your monthly premiums. Employers often check a job applicant’s credit report to see how financially responsible you are, also.
But I don’t have a credit history
Even if you think you don’t have a credit history, make sure that it is so by getting the free credit report and score from the official websites. A student loan and a bank account will appear in your report and is considered part of your credit history. If in fact you have no credit history in your report, you can start building it by opening a bank account and applying for a credit card. Store credit cards will also help. But, you can afford to pay in cash? Keep your credit card active by using it and paying it in full at the end of every month. That way you are creating a good credit history but not paying interest rates.