How To Get Your Free Credit Rating Online!

Within the United States there are three main credit referencing bureau's used by lenders when considering your applications. These are Experian, Equifax and TransUnion. These bureau's are responsible for maintaining a report for each of us which details our credit commitments, our repayment histories, missed or late payments and any credit agreements we may have defaulted on. This information is updated regularly with updates supplied by the lenders or creditors.

Your report will then be used by a new lender to make a final decision on your credit application. For example if you make a credit application for a new credit card. The credit card provider will first obtain your report from one of the three agencies above and take a look at the information it holds. It is primarily this information that will influence the lenders decision to approve or decline your application. However it also has secondary effects. For example your lender may decide that you can be approved, however due to a negative entry, they are only prepared to offer you the credit with a higher interest rate. This means that the information found on your credit report will directly affect the amount you will be repaying.

Many individuals are now beginning to realise the importance of checking their credit reports to ensure they are accurate, fair and up to date. In 2007 it was reported that 7 in every 10 credit reports requested were found to have an error of some description. This could be a simple case of a misspelled name or incorrect zip code, or it could be something more serious such as an account that you do not recognise! This is often a sign that you are the unfortunate victim of identity theft, so the faster you identify any dubious entries, the better.

It is also important to realise that you do not have just one credit report. In fact you have a credit report with each of the three bureau's - Experian, Equifax and TransUnion. Although each of these should contain exactly the same information, in reality this is not always the case. As each of the bureau's is responsible for collecting their own data, you may find inconsistencies or even different entries altogether! This is why it is crucial to obtain a copy of your credit report from each bureau. Not only will this allow you to see the bigger picture when it comes to lending, (as you won't know which bureau will be used by your lender!) but it will also allow you make certain all of your reports contain the same accurate, up to date information.

It is always a great idea to request your credit reports BEFORE you apply for any credit. This will ensure you have the best chances of being approved for the lowest interest rates available. Also this will save you a lot of time, money and hassle during your application.

There are two options available to you when it comes to checking credit reports. The first is to contact the bureau's individually and request your reports. This isn't very convenient and will cost you around $9 per report. Alternatively you can get your free instant credit report from Equifax Experian and TransUnion today, without spending a dime!