Different bureaus that make credit reports
There are three main bureaus which prepare the credit reports for consumers. These are Equifax, Experian, and TransUnion, with Experian using FICO scores to analyze credit reports. The credit reports are prepared on the basis of factors like payment history and debt history. These bureaus provide free credit reports to all citizens of U.S, as per the FACT act, every year.
Methods of getting credit reports
Credit reports are calculated through various computation methods. The main criteria for calculating credit reports are payment history of the consumers. These include all previous payments and current debts. The duration of loans taken is also a vital criterion in preparing these credit reports. Other factors include the types of loans taken, time taken to repay the same, number of times that debts have been pulled, income and employment status and various other related factors. Each of these bureaus has their own methods of getting these credit reports. Often there are slight discrepancies in the credit reports prepared. There are also free credit scores provided with these reports at times.
What to look for in credit reports
Credit reports are vital for evaluating your potential to repay loans. The credit report is the basis on which new loans and other financial benefits can be availed in the future. The first thing to look at the credit report is for misinformation or inaccurate data. There are instances where in spite of making payments on time, credit reports do not reflect the changes. This can be due to error or lack of regular updates. The minimum period for checking credit reports is 6 months. This also helps to keep a check on creditors who are responsible for reporting the latest payments made.
Correcting problems in credit reports
Once consumers are able to analyze the problems with their credit reports they should inform the credit bureaus about the same. This can be done through written applications which should have the copy of the credit report and also the details of payments made, in cases where payments have been made.
Where can you get free credit reports?
Credit reports are available through various channels. There are options like free instant online credit reports. These have a summary of personal information and hence should not be accessed through public computers. This also contains information on bankruptcy history and other details pertaining to your financial situations like loans and mortgages.