Some important questions to consider...

Why Should I Worry About Credit Fraud?
Why Should I Worry About Identity Theft and Credit Fraud?
What exactly is a Credit Report?
Why should I periodically review my credit report?
Will Divorce affect my credit?
Will my credit affect my ability to get a home loan?
How do I re-establish my good credit?
How can I correct possible inaccuracies on my credit report?
As a consumer, what are my credit rights?

Click here to order your credit report

Reasons To Check Your Credit Report

Never seen your credit report, or it's been years since you've seen it
Mistakes CAN Happen
Checking for Fraud and Identity Theft
Planning for your Financial Future
Applying for a Credit Card or a Loan
Divorce
Shopping for a Home Loan
Renting or Relocating
Co-signing a Loan
Own your Own Business

Click here to order your credit report

Why Should I Worry About Identity Theft and Credit Fraud?
Identity theft is a serious problem affecting more and more people each day. Unlike other crimes in the United States, the victim of identity theft is assumed guilty until proven innocent. It's commonplace today to hear stories about people whose lives are turned upside down because of someone stealing their identity. You hear about it on the radio, read about it in the newspaper, and see it on television. Regardless of the source, when addressing how to protect yourself against identity theft the common suggestion is to regularly obtain a copy of your credit report.

Usually, the first warning sign you get that someone has fraudulently assumed your identity is a call from a collection agency demanding payment on a credit account you never opened. Or when you stop getting your monthly bills and find out a change of address has been made by an identity thief.

"I was phoned at work 2 years ago by a company trying to "give me" a loan, asking me to verify my employment since they had a Chicago address on a loan application, and I live in Massachusetts. I said it is NOT me and they said - well, we have an application in your name here - I said what to do? They replied I should notify the three credit reporting agencies and have a fraud statement put on my credit report. I did that." - Identity theft victim, Hyannis, MA

Most of the time, you'll never learn how the identity thieves got your personal information in the first place and with today's technology it's virtually impossible to prevent access to all your personal information. However, in our credit-based society, having good credit is essential. Your credit can affect almost every part of your life - where you live; the car you drive; the type of financing and interest rates you qualify for; opening a checking account; establishing utility services; and much more. Unfortunately, a good portion of the public remains naive as to how to monitor and protect their credit and identity.

Recent legislation has now made identity theft a felony, but it is still up to you to ensure your identity is accurate. To help make sure you're not the next victim, Ecreditreport.com recommends the following: don't provide personal information (such as your social security number) via email; shred credit cards, utility and other bills that contain personal information; reconcile your monthly charge account statements and search for fraudulent charges.

Most importantly, it's imperative to obtain a copy of your credit report at least once a year to monitor for unauthorized address changes and fraudulent account information. Ecreditreport.com includes with your credit report, at no additional charge, a guide to assist you with interpreting the report and a form for disputing errors.

Identity theft can happen to anyone at any time. To help make sure you're not the next victim, protect your personal information, and obtain a copy of your credit report at least once a year to monitor for unauthorized address changes and fraudulent account information. -- back to top --

What exactly is a Credit Report?
A credit report is a factual record of your credit payment history. It's provided to companies and individuals by credit bureaus for purposes permitted by law, usually to grant you credit. The main purpose of a credit report is to help a credit grantor decide whether to grant you credit based upon your credit payment history. A credit report is a report generated from your credit file (a database maintained by a credit bureau containing your credit history.)

More than 190 million people in the United States have a credit card, car loan, mortgage or student loan. Almost every one of them has a credit file. The information in your credit file is obtained directly from the companies you have credit with, as well as from government agencies such as the legal court systems.

When you apply for any type of credit or financing, a credit report is generally obtained which contains information from at least one of the three major credit bureaus (Experian - formerly TRW, Equifax and TransUnion). However, these are not the only credit bureaus. There are hundreds of smaller credit bureaus around the country, but most credit grantors will look at information from one of the "Big Three."

There are different types of credit reports available. They include:

Consumer Credit Reports:
Click here to see the kind of information contained in a typical consumer credit report.

Property Manager Credit Reports:
These reports are basically identical to a typical consumer credit report.

Business Credit Reports:
Used to determine a business's credit worthiness, these reports typically include information on the primary business function and SIC code; company background information including company statistics such as years in business, number of employees, estimated sales, principal(s) and their titles; typical consumer-report-type information such as inquiries, accounts and status, public records. Sometimes includes payment trends of other companies by SIC group, showing how a company compares to the industry average.

Employer Credit Reports:
In addition to the information typically contained in a consumer credit report, may include current and previous employment verification; education verification; address verification; Department of Motor Vehicles record check; and criminal records check.

Mortgage Broker Credit Reports:
These special reports must meet or exceed all standards established by HUD, FHA, VA, FMHA, FNHA, FNMA and FHLMC. Contains consumer credit information nationwide merged from at least two national credit repositories, and includes manually verified name, address and employment history when available, plus public record, trade line and inquiry information. Risk scoring models from the national bureaus can also be included.

A credit bureau collects and maintains information on the majority of Americans, but they are not affiliated with the government in any way. You have some rights and protection through the Fair Credit Reporting Act (FCRA). The credit bureaus are for-profit corporations and they sell your personal information for money. How much money? To give you an idea, Experian's annual sales exceed $1.6 Billion.

The credit bureaus make money by gathering your credit information from credit grantors, listing the information in your credit file, then selling it to other credit grantors who want to see your credit history before they decide to lend you money. If you have shown any tendency to pay late or to default on paying your financial commitments, many credit grantors' computers are programmed to immediately reject your application.

Credit bureaus get your personal information from the same lenders who grant you credit through agreements they have made that require the credit grantor to inform the credit bureau of everything that occurs in your relationship with the credit grantor.

For example, if you are late with a payment, this fact is quickly reported to at least one of the major credit bureaus and is added to your credit history. Credit reports not only show how you are currently managing your credit, they are also histories of everything you have done in the past as far as your credit is concerned.

What information is contained in my credit report?
Your credit report may provide any or all of the following information:

Names of creditors
Maximum credit amount granted by one creditor
Maximum credit amount in total
Remaining balance due each of your creditors
Remaining balances due all creditors, in total
Past due remaining balances
Record of payment history
Bankruptcies
Adverse legal credit decisions
Foreclosures
Tax liens
Garnishments

What type of information is not contained in my credit report?
Personal information, such as your sex, race, height, weight and marital status is not contained in your credit report. Personal and confidential medical records are also protected and not included in your credit report. In addition, unfavorable information cannot be included if it is outdated. For example, debts that are more than seven years old, public records, such as bankruptcies that are more than ten years old cannot be listed in your credit file.

Will my reports from all three of the bureaus contain the same information?
Not necessarily. The three major credit bureaus, TransUnion, Experian, and Equifax function independently of each other. In other words, the information that they receive and provide can be unique to that specific bureau. The credit bureaus are not in contact with one another, so, for example, information that appears on an Experian credit report was specifically reported to Experian. Not all businesses or agencies report to all bureaus, so essentially reports from the three credit bureaus may vary. Finding out what information each of the credit bureaus has is a good idea for this reason. To obtain this information, order a 3-in-1 credit report online today.

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Why should I periodically review my credit report?

Identity Theft/Fraud: With identity theft on the rise in the United States, the number one reason to review your credit report at least once a year is to detect and stop fraud - before you need your credit.
You've Never Seen It: You should at least review your credit once in your life. See what the credit grantors know about you. It's amazing the amount of personal information that can be obtained in this one report.

Buying a Home or Car: Know ahead of time what appears on your report to help you shop for the best rate and take care of inaccuracies or past due balances.
Renting/Relocating: Take your credit report with you! Prospective landlords will be checking your credit, and you might just snag that great relocation by not having to wait for credit approval.
Divorce: You'll need to evaluate your financial position with your attorney. Make sure you check to see if there have been any accounts opened that you might not have known about.
Bankruptcy Catch all your credit accounts. Letting one slip by can cause financial grief in the future.
Self-Employed: New entrepreneurs better check their credit before applying for merchant accounts and other business services.

Need a Credit Card: Or any other credit line, for that matter. It's always wise to check your credit report before applying in case there are any inaccuracies. Don't get caught surprised because someone else's information is on your credit report!
Financial Planning: Any long or short term financial planning involves looking at your current financial position. And what better way to see that than reviewing your current credit report?

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Will Divorce affect my credit?
Traveling down the road to dissolution will require that many loose ends be tied, especially those of a financial nature. Filing for divorce may relieve you of certain obligations to your former spouse, however, divorce will not relieve you of obligations to your creditors. Understanding the different types of credit accounts that can be opened during a marriage can help you realize what financial obligations you have, regardless of who essentially incurred the debt.

Types of Credit Accounts
There are two different types of credit accounts: individual accounts and joint accounts. An individual credit account only examines your credit history, income and assets. That means that YOU are responsible for the debt that is acquired on this type of account. However, if you reside in a community property state (AZ, CA, ID, LA, NV, TX, WA, WI), either or both spouses may be responsible for debt incurred during the duration of the marriage.

A joint account examines spouses' credit histories, incomes, and assets. That means that BOTH you and your spouse are responsible for the debts incurred on this type of account, regardless of who actually incurred the debt. Even if a divorce decree states that one of the spouses is responsible for the debt, if the account is a joint account and one spouse fails to pay, the other spouse may be held accountable for the debt. One spouse's contempt of court is NO EXCUSE for the other spouse's non-payment.

Important Credit Information
If you are filing for divorce it is strongly recommended that you obtain a copy of your credit report from all three major bureaus. This way you will begin to develop a positive payment history, which is exactly what credit grantors are looking for. If you have joint accounts it is a good idea to notify your creditors of your divorce ask to reopen accounts in only one spouse's name. This is also a good way to make sure that all accounts are being paid. More importantly, it is wise to verify that all of the information in your credit report is accurate and complete, and this is a great way to help each spouse establish individual credit records.

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Will my credit affect my ability to get a home loan?
What can I afford?
As a general rule you can probably afford a house that costs up to two and one half times your gross annual household income (before taxes). You'll need to take into account how much you have for a down payment and what the closing costs will be. Other factors that will influence the size of your purchase will be your monthly gross income (before taxes), your debt payment and credit history. Or, you can use our online mortgage calculator.

When you're in the market for a home, it's suggested that you obtain a copy of your credit report to ensure that there are no surprises. If errors occur on your report you should have them corrected prior to applying for a loan. Because information may differ between the three major credit bureaus, we suggest a three-bureau merged report as opposed to a single-bureau report.

Will I Qualify for a Home Loan???

So, you finally found the perfect home... now all you need is the loan!

Buying a home can be one of the most exciting, yet stressful, decisions you will make in your life. Especially if you are left wondering "will I qualify for a loan?". Lenders take into account several factors before granting you a loan. Such as, your capability and motivation to pay back the loan. Your capability to repay the loan can be judged by proof of employment and verification of your salary. Your motivation to pay back the loan can be determined by examining your credit report.

If you have a history of repaying your previous financial commitments on time then a lender can be confident that you will repay your home loan in a similar fashion. It is for that reason that such importance is placed on your credit report. Help to alleviate some of that stress and check your credit before you apply for a loan. That way, you have the time to make sure that all the information in your credit file is accurate. See what your future lenders will see and get the peace of mind that you deserve.

Terminology:

Some terminology you will want to be familiar with when applying for a home loan:

Annual Percentage Rate (APR) - Lenders are legally required to divulge the APR. This is a combination of the interest rate, points and other related fees you will be paying annually.

Loan Origination Fees - This is the fee a lender charges for their services. It's usually 1 or 2 points. One point is equal to 1% of the loan amount, 2 points are equal to 2% of the loan amount, etc.

Discount Points - Discount points are charged when a borrower wants a lower interest rate. The borrower pays more points up front and this is called buying down on the rate.

Title Search - Lenders require a title search. This uncovers any liens, lawsuits and legal claims involving the property in question.

Title Insurance - This is also required by lenders. It is protection for the buyer and lender if complications with the title arise after the deal has been made.

Homeowners Insurance - This insures the contents of your home from theft and insures the structure from most disasters.

Mortgage Calculator: How Much can I Borrow?

In order to determine a possible mortgage for an individual or family, lenders use ratios to establish a mortgage that is reasonably affordable. For conventional loans housing expenses (mortgage principal, interest, taxes and insurance) should not exceed approximately 28%. However, when the ratio takes into account any additional long-term payments (payments that continue for a period of more than 11 months), housing expenses should not exceed 33%. To calculate your realistic mortgage payment not including any additional long-term payments please enter either your annual income or your gross monthly income.

Annual Income
Gross Monthly Income

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How do I re-establish my good credit?
There's no magic to repairing your credit, but with hard work and discipline it can be rebuilt. The first and most important step in reestablishing your credit is to avoid any further financial problems. Become financially responsible right away. Make a budget and stick to it.

The next step is to focus on your personal credit report. If you have unsatisfactory credit, it's because the information in your credit report is unsatisfactory or possibly inaccurate. If the information in your credit report is valid, it cannot be removed, even if the information is unsatisfactory. The main contributors to "bad" credit are:

Bills have been paid late or not at all
Too much debt has been accumulated
Information on your credit report may contain possible inaccuracies
Etc.

You should obtain a copy of your credit report to see what's being reported and to correct any possible inaccurate information. Because information may differ between the three major credit bureaus, we suggest a three-bureau merged report as opposed to a single-bureau report.

How can you correct errors on your credit report?

Once you have obtained a copy of your report detailing information from all three major credit bureaus (Experian, Equifax and TransUnion), you should provide each of the bureaus with a written request (see our dispute form) to investigate any outdated, inaccurate or ambiguous information. It is also a good idea to write to the credit grantor reporting the inaccurate information, including copies of any backup paperwork you may have.

The Fair Credit Reporting Act requires the bureaus to validate the information as accurate or remove it from your credit report. In most cases, there is a 30-day limit for the credit reporting agencies to resolve these disputes and you'll receive written notice of the investigation results within five days of its completion.

Beginning to use credit again

The third step to rebuilding your credit is to begin using credit. Obtain a credit card if you don't have one, even if it's a secured card. Use this card a little each month to charge normal purchases such as groceries or gasoline. Then pay the card balance in full each month to avoid any additional charges. This way you will begin to develop a positive payment history, which is exactly what credit grantors are looking for.

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How can I correct possible inaccuracies on my credit report?
Why are there inaccuracies in my credit report?

Inaccuracies may appear in your credit report for a variety of reasons. The two most common reasons are because you have been mistaken for an individual with a similar name and his/her information has ended up in your credit history. The other and perhaps more serious reason is "identity theft," a fraud that can affect anyone. This occurs when an individual willfully and fraudulently gains access to your personal and confidential information and uses that information to establish credit in your name, without your knowledge.

To request re-investigation of possible inaccuracies...

If you believe that there is inaccurate information in your credit report, it is advisable to get a copy of your three bureau merged credit report, which encompasses all of the information from each of the credit bureaus and consolidates it into one single report, to determine whether or not the erroneous information is being reported by all three bureaus.

After receiving your credit report, highlight any "suspicious" information contained in your credit report. One advantage of ordering a credit report from www.Ecreditreport.com is the dispute form, which comes free of charge, to assist you in clearing up any discrepancies that appear in your report. Once it has been determined which of the bureaus is reporting the inaccurate information you should contact that credit bureau directly to request re-investigation and if appropriate correction.

Contact your credit grantors and request that they investigate the information. If it is determined that the credit grantors are responsible for the error, request that they send all major credit reporting bureaus a written notice of the correction.

If your credit card grantor is unwilling to make the corrections to the credit bureaus, you can submit a written statement explaining the facts from your point-of-view and ask that this be posted in your credit file.

Examine your credit report twice a year to verify that your credit history is accurate.

For further dispute information...
If you would like to dispute possible inaccurate information with the credit bureaus please contact the bureau that supplied the possible inaccurate information in writing. Please be sure to include the following information:

Your full name including first, middle, last and any suffixes you may have;
Your current mailing address;
Your social security number;
Your date of birth;
The name and account number of the account in question and why you are requesting an investigation;
Your signature.

Mail the above described information to:

Equifax Information Services
P.O. Box 740256
Atlanta, GA 30374
TransUnion Consumer Relations
P.O. Box 34012
Fullerton, CA 92834
Experian Consumer Assistance Center
P.O. Box 2002
Allen, TX 75013

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As a consumer, what are my credit rights?
The FCRA is the federal law, enforced by the FTC (Federal Trade Commission) that governs the consumer credit reporting industry. The FCRA was enacted to set requirements on CRAs (Credit Reporting Agencies) to promote accuracy and to ensure the privacy of consumer credit reports.

Who can access my credit report?

Federal law (FCRA) states specific guidelines about who may and may not have access to your credit report. The law states that businesses are required to have a "legitimate business need" and a "permissible purpose" to review your credit history. Some of the types of businesses that can access your credit report are:

lenders/credit grantors
collection agencies
insurance companies
employers

Other than businesses or agencies that meet these guidelines, no one besides you can lawfully gain access to your credit report without your written permission. This prohibits friends, family members, or even spouses from gaining access to your credit history without your authorization or a lawful permissible purpose.

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How Long Does Negative (Derogatory) Information Appear on my Credit Report?

The Fair Credit Reporting Act (FCRA) requires that most negative credit items be deleted from your credit bureau file after seven years. Exceptions include bankruptcy, which can be reported for up to ten years. Inquiries usually remain in your credit file for 24 months.

What can I do if I find inaccurate information on my credit report?

Under the FCRA, if you believe that there is information in your credit file that is inaccurate, you have the right to dispute that information free of charge. The Fair Credit Reporting Act requires the bureaus to validate the information as accurate or remove it from your credit report. In most cases, there is a 30-day limit for the credit reporting agencies to resolve these disputes and you'll receive written notice of the investigation results within five days of its completion. Once the investigation is complete if you still disagree with the information you can request that your own statement be placed on your credit report.

For more information please see the steps to dispute possible inaccurate information.

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Never seen your credit report, or its been years since you've seen it
Knowledge is power, if you have never seen your credit report or if it has been more than one year since you have don't delay. Order a 3-in-1 Credit report and know for certain what all three credit bureaus (TransUnion, Experian, and Equifax) are reporting about you.

Why a 3-in-1 credit report? The three national credit bureaus do not communicate with each other, so you actually have three credit histories. It is up to you to make sure that your credit histories are accurate. Knowing what information is contained in your credit report is necessary for your financial security and peace of mind. Order a copy of your credit report today!

Mistakes CAN Happen
Do you know who has inquired into your credit report information? Do you know if the information they were provided with was accurate? According to various studies approximately 70 percent of credit reports have inaccurate information of some kind and approximately 30 percent contained inaccuracies such as judgments and false delinquencies that do not even belong to the consumer. Order a copy of your credit report!

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Checking for Fraud and Identity Theft
Let's face it, unfortunately fraud happens. Someone could have committed fraud by using your personal information and you might not even know until your good credit history had been jeopardized. Credit reporting agencies are not required to inform you of suspicious activity so checking the accuracy of your report could be critical. Identity thieves can strike anyone, anytime. Protect yourself. Make sure that you are not one of their next victims. Order a copy of your credit report!

Planning for your Financial Future
Most of us live for today and worry about tomorrow when it gets here. Unfortunately, that can often lead to financial disaster. Protecting your financial history is the key to your future. Inaccurate information can stay on your credit report for up to seven years if you don't correct it. Financial advisors recommend checking your credit at least once a year. This can help you assess your financial strength more accurately. Don't let today's mistakes be tomorrow's sorrows. Take a pro-active role in planning for your future. Order a copy of your credit report!

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Applying for a Credit Card or a Loan
If you plan on applying for a credit card or loan, check your credit before you do to make sure that all of the information in your credit report is accurate. Don't be caught off-guard. Don't be denied credit because of inaccuracies. And don't let those inaccuracies lead to a higher interest rate. Check your credit report to make sure you get the credit you deserve. Order a copy of your credit report!

Divorce
Your credit may be linked to your spouse's credit. In the event that it is, especially when getting a divorce you need to know. Knowing what information is in your credit report will help your attorney and advisors evaluate your financial position more accurately. If you co-signed on a credit account or you have a joint account, that credit account will most likely appear in both parties' credit files. To avoid any future confusion or reporting inaccuracies, the credit bureaus should be notified about the change in your marital status immediately. Order a copy of your credit report!

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Shopping for a Home Loan
Purchasing a home can be one of the most exciting, yet stressful, decisions you will make in your life. Help to alleviate some of that stress and check your credit before you apply for a loan. That way, you have the time to make sure that all the information in your credit file is correct. See what your future lenders will see and get the peace of mind that you deserve. Order a copy of your credit report!

Renting or Relocating
Come prepared when apartment hunting and bring a current copy of your credit report with you. If you are trying to rent an apartment, most landlords will check your credit before they offer you a lease. Get a head start and make sure that your credit is what property managers and owners are looking for. Order a copy of your credit report!

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Co-signing a Loan
If you have ever co-signed for a loan, it is a good idea to get a copy of your credit report periodically during the term of the loan to be sure that your credit history has not been adversely affected. Friends and family members always promise to make the payments in a timely manner, but this is not always the case. Payment histories for loans that you have co-signed will appear on your credit report. If you have been nice enough to co-sign be smart enough to check your credit. Order a copy of your credit report!

Own your Own Business
If you are self employed or own your own business checking your credit regularly is crucial to the financial strength and security of your company. The better your credit the more business opportunities may be available. Secure your credit and secure the financial strength and future of your company. Order a copy of your credit report!

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