Credit Reports: Did You Know?
>> Friday, January 14, 2011
Did you know? AnnualCreditReport is the OFFICIAL site to help consumers to obtain their FREE credit report from the big three, TransUnion, Experian and Equifax. Sorry, no catchy jingle here but this is THE website you should use. You are entitled to a free copy of your credit report every 12 months or if you are denied credit. Not your score but your report. In my opinion, you do not need to pay to get your score. I would not waste your money and here is why….in the big picture, all 3 credit reporting agencies use slightly different scoring models and if you apply for a mortgage loan the score is different than if you apply for a consumer type loan like for a car or credit card. Also believe it or not, scores given to you the consumers are different than the ones given to a lender…..strange but true. SO save that money, it doesn’t really matter that much.
Do you know why lenders use credit scores? I just told you that your score is not important but I guess it is to the lender. Have you ever heard Dr. Phil says “Past behavior is the best predictor of future behavior” Well, that holds true for a credit. How someone has paid their bills in the past is a good predictor of how they will in the future. Not always true but it takes time to rebuild your credit if you have had some financial setbacks. These days, scores are used for pricing the loan. This means that the better your score the lower your interest rate or the lower your score the higher your interest rate. Not always fair but it’s the standard system for most lenders.
Did you know? MyFico.com is a great resource for all things credit score. I highly recommend you go to the education section and understand what things impact your score. Knowledge is power!
About the Author:
Mary C is currently working in a credit union and has worked for various credit unions or companies dealing with credit unions, since “She was ready for a grown up job” in 1992 (thanks Dad). Except for 6 years, when I was home with my boys. I am not an expert on anything but I know some things from a lenders point of view that just may help you as a consumer! Look for some more insider tips from Mary C in the future on The Financial Nanny
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