The Benefits Of A Free Annual Credit Report

free annual credit reportWhy You Should Monitor Yours Every Year

Many people wonder why they would want to order one free annual credit report, much less three. There are some good reasons for ordering all three, and everyone making any type of credit purchases should take advantage of the information supplied by all of them. Equifax, TransUnion and Experion are the three national consumer reporting agencies that offer a free annual credit report to anyone who wishes to obtain theirs. The information found on these reports is used by lending institutions and credit card companies to determine whether or not an individual is a worthy candidate for financial assistance.

It is recommended that anyone seeking to improve their credit score take advantage of a free annual credit report to help maintain good credit ratings or improve on the one they have. For best use of this service, it is important that only one report be ordered at a time. This allows individuals to work on the information received to change unfavorable credit situations and check again in a few months to see if any changes have taken place by ordering another free report. Ordering one every 4 months is a very effective way to use these reports for the greatest benefit.

As individuals work with the information provided on their free annual credit report, they are able to correct any mistakes that are found. This takes some time, but it is well worth the effort. A large percentage of erroneous information on credit reports are due to false delinquencies that show up that may not even belong to the consumer. Others are due to the creditor not updating information once an account is paid in full but the account has not been listed as closed.

By taking steps to make needed corrections to credit reports, consumers are better able to get a handle on their debt. A lot of the time, it is a matter of not understanding how to manage finances that gets people into financial trouble which leads to bad credit reports. By working with free annual credit reports it is possible to change attitudes about money and bring balance into life.