Where do you generally get your credit report? Authentic credit report companies including Experian, Equifax, and TransUnion, offer free credit reports to US consumers once in 12 months. It is an excellent opportunity you should seize to take a look at your credit record. Monitoring your credit record can help you spot discrepancies like unauthorized transactions and potential identity fraud instances.
What’s the deal with different credit reports from the various credit bureaus?
While getting your credit report is full of perks, you need to be cautious about the sites and services you are using. Many of the available sites offer free trial services. These trials typically renew themselves after the end of the free-period unless you manually cancel the trial subscription. Registering for multiple “free services” on such websites can take a few points off your credit score unless you are careful. Therefore, it is imperative to choose credit report companies reviewed by reputable and trustworthy reviewing services only.
There are several ways to obtain credit reports. Free credit reports can come from the credit bureaus, but third-party sites can also provide you with the same information. However, there is a slight difference in the services the latter companies offer. When you approach a third-party for a credit report, you will typically receive a credit summary, instead of a comprehensive credit report.
Why is your credit score different from each credit bureau?
When it is time to pull a credit report, first ask yourself, what its purpose is. Are you applying for a new loan? Or, is your employer asking for a financial summary? In either case, ask the concerned party if they have a preference for any bureau that offers credit reports. Otherwise, you can approach any of the three leading credit bureaus for your report. Most importantly, in each case, you must remember that the credit score will depend on the information in each of these reports. For example – your Experian FICO score will depend on the data in the Experience report. The choice of your credit bureau will determine the score and data.
When you receive different credit scores from various sources, you should consider the following factors –
- Ensure that the dates on the reports are the same. Your credit score will vary when the report considers different durations.
- Several credit scoring models exist, and you should ensure that each bureau uses the same credit scoring model. Unless they do, your credit score will vary, and each one will be correct.
- When calculating your credit scores, you must ensure that the reporting agency uses the same reports. Not using the same credit report can exclude certain relevant information that can hurt your score.
Nonetheless, there can be errors in your credit reports. You need to check these reports periodically, so your FICO score remains healthy.
What is the good, bad, and ugly of FICO scores?
In terms of FICO, if your score remains above 80 most of the times, it is similar to receiving straight As. The national average is around 695, which is more of a C in high-school standard grading terms. More than 90% of all lending parties in the US consider FICO scores to judge how risky the borrower is. It is the easiest for those with scores around and above 800 to get the best loan offers. While those below 695, might have to consult credit repair services. They also have to consider high-interest loans and short-term loans more frequently than those with a better FICO score.
What factors should influence your choice of credit bureaus?
While picking a credit report company, you need to consider a few factors. Some of the credit bureaus in the US charge money for the very first access to a consumer’s credit report, while others offer free annual reports to the consumers. Here are a few factors you must consider before choosing one credit bureau –
- Typically, once-in-12 months credit reports are free from all credit bureaus in the US. If you want another credit report within the next 12-months, you need to pay a fee. There are some exceptions, including error in the report, or possible identity theft.
- Many credit bureaus demand credit card information for the trial period. They typically charge a one-time fee or a monthly fee upon the expiry of the trial period.
- There should not be recurring charges if you cancel the service subscription after the trial period. However, many of the sites provide credit monitoring services,
- and that can deduct a sizeable amount from your credit card unless you manually stop it on time.
How can credit report and credit monitoring help with identity fraud?
Identity theft is increasing alarmingly in the US. Fraud alert services on credit cards and other revolving lines of credit don’t seem like a luxury for most credit card users. Here’s why you should pick a credit bureau with additional fraud monitoring abilities –
- You can check for a wholesome credit management package. Typical credit report companies charge an additional fee for their fraud alert services.
- Most credit monitoring services alert the registered consumers as soon as there is unusual activity on their account.
- Many of these companies freeze the consumer’s accounts as soon as there are potential fraudulent activities on their accounts.
When you are choosing a credit report company, you must check its history, service quality, and consumer feedback. Visit the third-party review websites that collect consumer reviews and generate consolidated performance reports or comparative service reports for such credit bureaus. Choosing the right company and its services becomes much easier when you have a consolidated comparison table of prices, services, and ratings in front of you.
If you have a poor credit history or you are waiting to make a big purchase, it might be a good idea to get your free annual credit report right now. If you suspect identity theft, don’t waste time! Get a credit report, even if you have already used up your free credit report opportunity.
