A credit report is necessary in this day and age. A credit report is a record of your credit history. It lists all credit cards you have, whether they are still in use or not. It also shows your loans, balances and if and how regularly you make payments. If you do not pay your credit card bills, it shows this as well.
Most people have some sort of credit score, but you may have no credit score. This happens if you are young and have no credit cards. This is okay for a few years, but as soon as possible, you should establish your credit. You need this in order to get loans for school, purchase a house or car, and many other things. If your parents have good credit, they can add you to their credit card and help you build up your credit.
Did you know that everyone is entitled to an annual credit report for free? It is true. Do an online search for annual free gov credit report and click on the link that pops up. This is the easiest and quickest way to receive your annual credit report for free.
You can also receive your credit report through a free trial credit monitring service. These companies want you to purchase their service, but they do offer trial periods of usually 7-14 days. Some can be up to 30 days. The top three companies that provide this service are Equifax, TransUnion, and Experian. You can either go to each company’s website separately and sign up, or go to a website that offers all three in one spot.
These companies clearly want you to keep the service, but you are not penalized at all for stopping the service after the free trial has ended. They prefer you to only use the free trial once, but they will not stop you from reapplying for the free trial.
Are you wondering why you should get your credit report? The reasons are:
* Jobs – Companies use your credit report to see what type of person you are through your credit history for hiring decisions. It looks poorly if you have bad credit.
* Loans – If you do not have a high enough credit score, you will not be allowed to get a loan for school or a home.
* Stopping Theft – Identity theft is a big problem in the US. It is fairly easy for thieves to steal a pre-approved credit application and find your information to set up a credit card in your name.
* Mistakes – Everyone makes mistakes and credit companies are no different. There could be mistakes on your credit report such as a missed payment that you did not miss or a closed account that is still open.
* New or updated credit – If you want to apply for new credit, the credit company wants to know you will pay your bill on time and keep their card for long periods. This also applies for if you want to raise your existing credit limit on a card.
It is in your best interest to receive your free credit report. The benefits are astounding and there are ways of receiving such reports for free.