| Most credit transactions today are based on a credit | | | | account. The current and past addresses should be |
| score. People with high credit scores, those above | | | | reviewed to make sure they are all accurate. All the |
| 680, get preferred interest rates and repayment terms. | | | | accounts should be familiar. |
| People with low scores below 620 have problems | | | | The balances of the account should be fairly close to |
| getting financed for everyday necessities. | | | | the current balances; closed accounts should indicate a |
| The difference between the scores means thousands | | | | zero balance. At the end of the report will be a list of |
| of dollars on automobile and home loans. This numeric | | | | companies that requested and received a copy of the |
| score even affects homeowners insurance and | | | | credit report in the past two years. |
| automobile insurance rates. The federal government | | | | Any discrepancies will be noted. A letter sent to the |
| realizes how important credit information is and passed | | | | bureau with the wrong information will state the reason |
| a law stating that once a year every consumer is | | | | for the dispute. That bureau will then send an inquiry to |
| entitled to one free credit report from all three of the | | | | the company asking for verification of the information |
| existing credit reporting bureaus. Every consumer | | | | on the report. That company has 30 days to respond; |
| should know the 3R's; request, review and report | | | | if the company does not respond in 30 days the credit |
| errors. | | | | bureau will remove the information from the |
| There are many ways to get a copy of your free | | | | consumer's report. |
| credit report every year. The consumer can write to | | | | If the company responds and the credit bureau |
| each of the three credit bureau reporting agencies. | | | | determines it is a legitimate transaction, the consumer |
| These bureaus are Equifax, Trans Union and Experian. | | | | has the right to insert his or her objection into the file |
| It is much faster and easier to go online and request it | | | | and a note will be made on the report showing the |
| from one of the websites that offer this service. Filling | | | | disputed information. |
| out one application at these websites will access all | | | | Even small discrepancies can have a big impact on the |
| three reports which can be printed or read on the | | | | credit score and credit terms the consumer is able to |
| computer screen. | | | | obtain. By reviewing my free credit report once a year |
| Each report should be carefully reviewed. The | | | | each consumer is doing all he or she can to protect |
| consumer is looking for accounts they do not | | | | their credit information and guarantee its accuracy. |
| recognize or even erroneous information on an | | | | |