::Credit Score - Free Credit Report

TransUnion, Equifax and Experian are the three national credit reporting agencies that keep records on consumers. The reporting agencies work with lenders, creditors, insurers and employers to update and distribute your information to the appropriate institutions.

Here are some examples of how the credit reporting works:

		When you apply for a new credit card the creditor requests a copy of your financial history from the reporting agencies. This causes a “hard inquiry” to be recorded on your credit report. The creditor uses your credit reports and scores along with income and debt information to determine your risk level and decides on the interest rates given to you. Creditor will start to report your activities to the credit reporting agencies about every 30 days once you start using your credit card. Credit reporting agencies will update your credit report as they receive new information from creditors and/or lenders that you belong to or are associated with.
	Your credit report– Your credit report is divided into six main sections: consumer information (address, birthday and employment), consumer statement, account histories, public records, inquiries and creditor contacts. These sections are updated when you open a new account, miss a payment or move. Old negative records will stay on your credit report for 7-10 years. Positive records can remain on your credit report longer. Not all creditors report to all three agencies and the agencies obtain their data independently so your reports from TransUnion, Equifax and Experian could be substantially different from each other. This is why it is always wise to check all three credit reports to catch discrepancies ever 6-12 months. How to correct inaccuracies– There are many options consumers have in terms of correcting inaccuracies. Under the Fair Credit Reporting Act, consumers are protected from having inaccurate information on their credit reports. If you find an inaccurate record on your report, you should contact the creditor or lender associated with the mark first. These companies can usually correct the mistake and send an update to the credit reporting agencies. If you can't make progress this way, you can also dispute the inaccuracy directly with the credit reporting agencies. Once the agencies receive your dispute, they will make their own investigation and make changes to your report accordingly. Tips on keeping a healthy credit report– Keeping your credit score up to date and spotless will help you save a lot of money and get you the best rates on loans in the industry. We recommend that you check your credit reports every 6-12 months or at least 3 months before a major purchase in order to guard against damaging inaccuracies and identity theft. Make sure you have a routine check-up along with paying your bills on time, keeping your credit card balances below 25% of their limits and correcting any negative inaccuracies will help you maintain a healthy credit profile. Credit reports are pulled for many reasons including for loans, cell phone and even for employment. So keeping a healthy credit report will only help your life for the better.