I could spend hours talking about credit. I won't, but with this post, I'm aiming to begin the dialogue.
If you're an expert on all things credit-related, this article will probably not be for you. Then again, if you're a credit expert, you probably won't enjoy this site anyway.
I don't want to assume you know anything about credit. I didn't. I thought I did, but I didn't. I still have a lot to learn, but I've gleaned many a lesson the hard way. I'd like to share my experience.
First off, knowing what's on your report is absolutely essential. You can't repair a problem you don't know exists.
There are three major credit bureaus: Experian (EX), TransUnion (TU) and Equifax (EQ). Creditors will report information to these bureaus and they use the info (good or bad) to tabulate your scores. Thus, every person has three different scores. It's important to know all three of them, as different creditors use different scores to make decisions on whether or not to lend you money.
There are lots of different ways to get your scores. FreeCreditReport.com (FCR) does offer a one-time free score. That's not totally being transparent though. You should know that they will not furnish you all three scores. Because they are primarily an extension of Experian -- surprise, surprise -- the score you will get from FCR is going to be your Experian score. Also, be aware that if you do not cancel your membership with FCR after the first month, they will begin to bill you $14.95 on a regular monthly basis.
Another way to get your score and reports is through AnnualCreditReport.com (ACR). ACR's offer is unique, in that they will only furnish you the information, free of cost, once a year. You may certainly get that info from them more frequently, but you will pay for it. Their service furnishes you (again) your Experian score. They do not offer your TransUnion or Equifax scores, but they do give you your reports from those respective bureaus.
CreditKarma.com (CK) is another free score and report service that you can take advantage. CK is an extension of the TransUnion bureau, and so the score they offer their customers is the TU model. I do need to offer a disclaimer. Though this website claims to offer you your TU score, I've found that this is not entirely accurate. Proceed with caution and understand that you get what you pay for when you get things for free.
Other than the aforementioned methods, you can always go online to the bureau's official websites and pay to get your score and report at any time. That being, they don't make it cheap or easy to do. Obtaining your EX and TU scores will run you $14.95 a month and a membership. Your EQ score will cost $15.95 and a membership as well. The truly annoying part is having to call (They won't let you e-mail them. Way too convenient!) them to cancel your account. After almost surely being put on hold to listen to some rockin' John Tesh classics, they will, then, put you through to someone who doesn't speak English as their first language, is clearly reading from a checklist of items and is aggressively trying to stop you from canceling your membership. Fun, eh?
If you've never checked your reports and scores, or you just haven't done so in a year, I strongly recommend you use AnnualCreditReport.com. It's quick and painless.
Now you've got your scores and reports. What's next?
You need to thoroughly check each report. Understand that each bureau tabulates their scores differently. Some creditors choose to report to some (or one) of the bureaus and not to all of them. I cannot stress enough the need for you to go through each report with a fine-toothed comb. If someone has reported something that is not accurate, it is hurting you and will continue to do so until you rectify the situation. We'll get more into what your actual recourse is in those situations. For now, you just need to know it's important to know what's there and to pursue action if you see false reporting.
So that's the tip of the iceberg. We'll keep delving into the topic as the site grows and develops.
Have a good weekend!
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