credit report - How To Get And Read A Free Online Credit Report

It is important that you understand how to read your free credit report because of the great impact that your credit report score can have on your life. When you understand your free credit report and your eligibility status for credit and loans, you will be able to take action to fix your credit score if your credit score is low. You and any Lender can examine your Credit Report You can receive your free credit report online from different websites. It is a requirement of the Federal Trade Commission that you be provided with a free credit report annually from the three major credit agencies that include Experian, Equifax and TransUnion. You can get your free credit report online from any of the many websites that are available to help you with obtaining it. Your credit report can also be requested by banks, credit agencies, property owners and other credit services. Five Elements of your Credit Report Your credit report is divided into five main areas: Your personal information is on the report and this includes your name, address, phone number, social security number and other private information. Your credit report will have information from collection agencies that have a history with you. Information from public records, including items such as civil judgments and bankruptcy, will also be contained in your credit report. Open accounts such as leases, utility accounts, credit cards and loans will appear on your credit report. You will also be able to view the requests for your credit report that have been made by banks, lenders and other interested parties. Carefully Check your Credit Report for Errors and Fraud When you receive your credit report and you know how to read your credit report, you can familiarize yourself with all five elements of the report. Check the data for any errors, fraud, theft or outdated information. Fraud is a common activity and if unchecked, it could affect you negatively by lowering your credit report score. When you read your free credit report and you do find any errors that affect your credit score, contact the credit agency for error correction. When you obtain your free online credit report be sure to also obtain a detailed list of all the different terms and abbreviations used, this will be a great deal of help when trying to interpret your credit report. You should also visit http://freeonlinecreditcheck.googlepages.com/ for more information on your credit score, and how to properly read your credit report. Your credit report should also come with a form or instruction sheet to guide you through the dispute process, should you encounter any incorrect information. Free Online Credit Check Copyright ? 2007 - Zach Ford - All Rights Reserved Article Source:http://EzineArticles.com/?expert=Zach_Ford credit report - Universal Default - Tips On Avoiding The Trap You've probably never heard of it, but it's in your credit card agreement contract. We all read that barely visible lengthy finely printed jargon, don't we? "Universal default" refers to the credit card rule that allows a credit card issuer to raise your interest rate, at any point in time, if they believe that you are a credit risk. For example, if you pay late on credit card A, in addition to credit card A raising your interest rates, credit card B and C can also raise your interest rates. So how does the credit card company know that you were late on paying the bill for credit card A? Your credit report tells all. Banks actively monitor your credit score to see, if your score has declined due to late payments, too many lines of credit, bounced checks, inquiries, etc. It is estimated that approximately 44% of all credit card issuing banks have a universal default clause in their credit card agreement. This is an increase of 5% since 2003. The universal default clause has been in existence over the years but the rate at which banks are enforcing the rule has increased, in an effort to increase revenues. In addition, the universal default penalty has risen sharply and can land you an interest rate as high as 25%. The scary fact is that you could buy a refrigerator at a 9% interest rate, only to find yourself paying an interest rate of 24.99% for the same purchase. Here are some tips on avoiding the universal default penalty: Understand your credit card contract. You don't have to spend hours examining every finely printed word, but make it a point to scan the credit card agreement and rules, looking for special clauses such as "universal default". You can also contact your credit card company, if you do not understand any of the agreement terms. Monitor your credit report on a frequent basis. You are entitled to three free credit reports per year according to the Fair Credit Reporting Act (FCRA) - take advantage of them. Fix credit report errors. If you find anything on your credit report that raises "red flags" - take corrective action and fix them right away. Your credit file may reveal accounts that you did not open and other identity theft related issues. You will want to fix these errors so that they do not affect your FICO score. Pay all your bills on time. Online banking is a great way to ensure that your bills are paid like clockwork.