| In difficult economic times and with the credit market | | | | increase the pressure on you to buy by emphasizing |
| getting tighter and tighter, it is important to manage | | | | that bad information could appear on one credit report |
| your credit and finances very carefully. One of the | | | | and not on others. The slick marketing appeals could |
| best ways to do this is to keep track of your credit | | | | make your free reports actually quite expensive. |
| rating. A key component is your credit score. You can | | | | Another tactic that marketers use in the free credit |
| get your free credit scores on line from many | | | | reports game is to emphasize that information on your |
| companies on line. You have to be careful when | | | | report can change at any time. They use this strategy |
| dealing with some companies because there is a | | | | to sell monthly memberships that keep track of any |
| distinction between your free credit report and your | | | | changes in your score. The problem is that most |
| free credit scores. The credit report lists your creditors, | | | | people's scores do not change all that quickly. Only |
| payment history, status of your loans, and any | | | | very financially active people are really in need of |
| derogatory reports from the companies who gave | | | | constant updates or even monthly ones. The average |
| you credit. This report does not contain any scoring. | | | | consumer would be fine checking once or twice a |
| You can obtain one free report per year from the | | | | year. Although it is important to take control of your |
| federal government. Your credit scores are completely | | | | credit, the marketing technique is to promote paranoia. |
| different. The scores are calculated by reporting | | | | People feel that they leave themselves vulnerable to |
| agencies based on your credit report. These scores | | | | erroneous derogatory items if they aren't constantly |
| are available to any company you are asking for credit | | | | checking. In truth, mistakes are made by the credit |
| from. When evaluating where to get your financial | | | | bureaus, but they are relatively rare. |
| information from, be careful to read closely as to | | | | The companies offering credit reports also tend to |
| whether the company is offering free reports or | | | | oversimplify the credit system. The score that you see |
| scores. | | | | for each bureau isn't the end of what your credit can |
| Another consideration regarding free scores is that | | | | say about you. Many industries, such as the mortgage |
| your overall score is a combination of the scores from | | | | industry, weight the information pertaining to how well |
| the three major credit bureaus: Experian, Trans Union, | | | | you pay your rent in relation to the rest of your history. |
| and Equifax. Most companies look at all three scores | | | | This score is different than the general score you |
| to come up with a composite of your overall credit | | | | might see. This complex calculation could be the reson |
| worthiness. Many sites will offer a free credit report, | | | | your overall score is okay, but you still get declined for |
| but not free scores. Many times you will be given one | | | | a loan. |
| score, but have to pay for the other two. They also | | | | |