Creditreportagencies.org Discusses How to Get a Credit Report

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A person with a low credit score will naturally be deemed as irresponsible when it comes to credit.

Los Angeles-Long Beach, CA (PRWEB) October 02, 2013

Credit Report Agencies is a website that provide credit reports and credit scores to consumers who want to get a copy without any charge. In a latest article titled “Understanding Your Free Credit Report,” the website discusses the basic information that consumers must learn about these reports.

Through the article, Credit Report Agencies answered 5 important questions about credit reports.

The first question is: what is a credit report? The article explains that it compiles all the credit history and information of a consumer. It is used by lenders to determine the creditworthiness of a borrower.

The second question is: what information is included on a credit report? Credit Report Agencies state that this report contains almost all credit related data of the consumer. From payment history, debt amount, credit inquiries, balance to credit limit ratio and type of accounts, these are the information indicated in a credit report. It also shows any court ordered judgements on the financial life of the consumer - e.g. bankruptcy.

The third question is: why are credit reports important? The article explains that this helps compute the credit score of a person. A high credit score will help consumers get a good deal on their loan application - lower interest rate, better payment terms etc. It also shows the payment behavior of the consumer - a very important factor that will determine if they are a high risk or low risk borrower. A person with a low credit score will naturally be deemed as irresponsible when it comes to credit. This will prompt the lender to take steps to protect themselves in case the consumer stays true to their behavior and default on payments. Usually, this is in the form of a high interest rate.

The fourth question is: where to get a copy of a credit report? The article reveals that all consumers are allowed to get one credit report from each of the three major credit bureaus annually. The best thing about it is, this comes without any cost to the consumer. They can download the three reports through the AnnualCreditReport.com. Consumers have the option to pay of course but this is an option that most people prefer. The article explains that consumers must take advantage of having this report to check if there are any misinformation about their credit history. This should be disputed and corrected.

The fifth and final question is: how can credit scores be improved? This can easily be done by being more responsible about credit. Among the tips from the article includes paying dues on time, correct any wrong data, and lower the credit balance.

The article warns consumers to be careful of companies offering to help improve their credit score for a fee. Credit Report Agencies believe that there is no need for professional help when improving one’s credit report.

To read the rest of the article, visit http://creditreportagencies.org/.

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