Free Credit Rating Check
Knowing your credit rating is very important when you are considering buying a home or property with a mortgage loan, and a free credit rating check is a great way to check your credit without any cost to you.
The same is true if you are considering the purchase of a car, RV, boat, or a plane.
In fact, even if you aren’t in the market for a home or property, or a car, RV, boat, or plane, it is good to get a free credit rating check so that you know what you are doing right, or doing wrong so that you can either stay the course, or work on improving your credit.
It is smart to establish credit, if you are at the point in your life where you don’t have any. No credit is just as bad or worse than bad credit.
So, how do you establish credit if you don’t have any? You want to start small by attempting to get store credit cards. Many appliance stores, stereo stores, and others offer their own credit cards so that you can buy products from them on an installment basis.
You have to have a way to show you have the ability to pay back these loans. At a bare minimum, you should have a job, and the longer you are on the job, and the more money you make, the better.
Once you make a purchase with these cards, be sure to make the payments on a consistent basis. If you do this, you will then qualify for larger purchases, and these stores will contact the credit reporting bureaus on your behalf, and your credit rating will begin.
What exactly is a credit report?
A credit report is your credit behavior on a comprehensive, detailed list of the information that pertains to it. Credit reports may have:
- A list of companies that have issued you loans or credit
- The credit limit for every credit card or the total dollar amount for every loan
- Any late or missed payments including bad debts
- How well you paid your loans or credit on time plus your paid dollar amount
Certain credit websites give you a free credit rating check that lists everything affecting your credit history. You may find things messing up your credit like bills that are older that you may have forgotten about.
In addition, you could find some things that may have been reported incorrectly. These will hurt your credit score.
You can learn which credit reporting agencies supplied the information on your credit report card. You can then go directly to that company, and follow their directions in order to clean up the negative information.
In addition to your credit score, you will also receive the parts of your credit history broken down into precisely what your score is affected by: account age, debts, account mix, credit usage, and payment history.
It will show you the key factors of your credit score so you will know exactly what to focus on.
When you make a payment on a loan or credit card , the business that provided you with the credit or loan maintains a data base of the amount you pay, how often and when you pay, as well as the balances of the loans, and the credit limits.
These companies and other credit sources may report your payment, loan, as well as credit history to one , two, or all three of the credit reporting companies.
The credit reporting companies all put together the information they intake about your different payment, loan, and credit behaviors into a report detailing your specific credit.
The information on your credit reports may vary as not all businesses that you have credit dealings with send reports to all three credit reporting companies . The credit reporting companies prepare credit reports for people in the U.S.
Credit reports may also include:
- A list of businesses that have obtained your credit report within a certain time period
- Your current and former names, address(es) and/or employers
- Any bankruptcies or other public record information
The three main credit reporting agencies are Equifax, Experian, and Transunion.
Federal law mandates that all of the three nationwide consumer credit reporting companies – Experian, Transunion, and Equifax – to provide you with a free credit report every year if you request it.
This is another way to get your free credit rating check.
This will allow you to be sure that the information on each of your credit reports is current and true. These credit reporting companies also make it simple to complete numerous credit-type tasks right from the comfort of your own computer.
What to look for when looking at your credit reports
Be certain that the information on your credit report is familiar to you such as the information that identifies you, like names, home addresses, tax ID or social security numbers, loans, and account numbers.
Also inspect that any other information on your credit report is up to date, complete, and correct.
If you discover data that you determine is not yours or that is erroneous, be sure to get in touch with the business that initiated the account, or the credit reporting company that published the report, or both.
For more information on what to look for when reviewing your credit reports, go to the Consumer Financial Protection Bureau’s website
Credit reports can and often do affect your credit card requests, mortgage interest rates, apartment approvals, and sometimes even your applications for jobs.
Another sound reason for reviewing your credit reports is that it helps you catch signs of identity theft early, which can save you a great deal of trouble, and distress.
- Equifax – www.equifax.com. P.O. Box 740241. Atlanta, GA 30374-0241. 1-800-685-1111.
- Experian – www.experian.com. P.O. Box 2104. Allen, TX 75013-0949. 1-888-EXPERIAN (397-3742)
- TransUnion – www.transunion.com. P.O. Box 1000. Chester, PA 19022. 1-800-916-8800.
Modern society rewards those that buy on credit, and pay on time. Lenders want to know that you have an established track record of borrowing, and paying off your debts.
If you can stay the course, and always pay as agreed, it won’t be long before you will have a stellar credit rating. Of course, in order to qualify for large purchases such as cars, and homes, you will also have to show steady employment.
They want to see at least 2 years on the same job, or if you have a break between jobs it can’t be for long periods, and you must stay in the same industry if you do change jobs or else your credit rating could suffer.
In addition, you can’t have too much debt, and you should have some net worth that is liquid, meaning you can turn it into cash quickly, and not too much debt as a ratio with earnings.
Lenders like to see not more than 1/4 of your earnings earmarked to pay off debt. This leaves enough to make a mortgage payment or a car note payment without strapping you in.
What exactly is a credit score?
Credit scores are a number that is the result of math calculations based on the information in your credit report to calculate a rating which predicts how likely you will be to pay your debts and/or bills going forward.
There will likely be a variance of the credit scores you receive from the different credit reporting companies. There are a myriad of causes for that:
- The credit reporting companies all use different formulas in order to determine credit scores. The different formulas often create variances in your actual credit scores.
- Companies sometimes calculate scores that are based on different scales.
- Companies that you have had credit dealings with may not provide information to each credit reporting company, and if they do, they may send their information at differing times and days.
- This could mean that the credit information given to one credit reporting company is different from the credit behavior that is reported to another credit reporting company.
Businesses will often use credit scores to predict how likely you will be repay services and/or loans. Those with lower credit scores may be considered as less likely to pay back their obligations.
Conversely, those with higher credit scores may be considered as more likely to pay back their obligations, and as a result, are much more likely to be approved for loans, and other credit services.
For more information about credit reports and scores, go the Consumer Financial Protection Bureau website,
In order to create a stellar credit score, and report, establish some credit. Always make your payments by the due dates. Stay gainfully employed, and remain in the same industry.
Don’t over extend yourself even if you qualify for more credit. Monitor your credit scores, and credit report by getting your free credit rating check periodically to make sure they are accurate, and updated.
Learn how to challenge any information on your credit report that you believe is erroneous or inaccurate.
A free credit rating check, and taking these simple steps can mean the difference of qualifying for houses, cars, boats, rv’s, and even planes and yachts, or being forced to pay cash for everything due to an inability to qualify for credit.
Be sure to get your free credit rating check, while it is still free.