The very first step you need to take when trying to manage your debts or raise your credit score is to find out what your score is and what it means. In the USA, legislation called the FACT Act was passed allowing its people to get one free copy of their credit report every year. This report lists all of your debts you’ve had and your payment history on those debts.
Even though you get one free credit report each year, it may be wise (if you are serious about improving your credit score), to examine a report from each of the three major credit reporting agencies. This will, however cost you a small fee from the other two, so keep that in mind.
Why do they suggest you have all three? Creditors can pick and choose which credit reporting agency they want to report to. Some will report to all three, but many won’t. You may find that what is included on one report isn’t on another. The reports will have different information because it's a voluntary system, and creditors subscribe to whichever agency they want -- if any at all.
The credit report (score) will tell you where you owe money, how much you owe, and how you pay (on time, 30 days late, etc.). All of that information is compiled together and then analyzed.
There are three major credit reporting agencies that will offer you the one free credit report you get each year. In USA, they are Experian, TransUnion, and Equifax. You can contact each of them directly in the following ways:
§ Equifax – Online, you can find them at www.equifax.com. You can also order your free credit report by mail. However, they only offer this option for free to residents in the states of Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey, and Vermont. All other states are required to pay a $10 fee.
If you do want to do this by mail, send your request to Equifax Information Services, LLC; Disclosure Department; P.O. Box 740241; Atlanta, GA 30374. You can also call them at 1-800-685-1111.
§ TransUnion – Their web address is www.transunion.com. As with Equifax, you can also make your request via mail by getting a copy of their mail request form online and sending it to the address provided. You can also call them at 1-877-322-8228.
§ Experian – www.experian.com is where you can make a request for a credit report from this credit reporting agency. As with TransUnion, you will need to download a form from their website if you wish to request your credit report by mail. By phone you can call 888 397 3742.
Once you get a copy of your credit report, it’s important to know how to read it. You will find many figures, abbreviations and terms you've probably never seen before. Trade lines, charge-offs, account review inquiries -- how do you read this data? Next week's post will explain "How to read your credit report".
Until then,
God Bless,
Eli-Editor
