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YOUR FREE CREDIT REPORT

By Fred Cope

Real Estate Agent with Reliant Realty in Nashville, TN TN License# 00232013

March 21, 2011 06:23 PM

Credit Score Factors

"FREE CREDIT REPORT": HAVE YOU EVER HEARD THAT ONE BEFORE? When is the last time you reviewed your credit file? Have you ever chased a "Free Credit Report" link only to find it is "Free" with the purchase of something else? Have you ever been annoyed by pop ups promoting "Free Credit Report"?

While I'm not selling "Free Credit Reports", I would take this opportunity to pass on some helpful information, and tell you up front, that when you have read this blog in its entirety, your wallet will still be in your pocket. But I hope your level of knowledge will have increased. This is a more introductory than indepth post; but I hope it becomes a springboard to a greater knowledge of all that is involved with your credit file.

I. Virtually everyone has a credit file-compiled from information consumers provide to creditors when making applications for loans. (It is becoming extremely difficult to borrow money unless you have established credit.) Your credit information is stored electronically, and retained for periods of time based on Federal Regulations & Laws. The Federal Agency that oversees the compiling & reporting of credit information is the Federal Trade Commission (FTC). If you go to http://LookingForHomes.org and select the FREE CREDIT REPORT TAB, it will lead you to some free information from the FTC. Hopefully, you will learn something along the way, such as how long negative information remains in your file.

II. There are three major credit repositories: Equifax, Experian and TransUnion. You can type any of them in a Search Engine, and find more information than you can read in a lifetime. When incorrect or inaccurate information appears in your file, you need to contact the repository source reporting the information: Equifax, Experian and TransUnion.

III. You cannot go through a mortgage application process without hearing the word FICO (it is the abbreviated version of Fair, Isaac and Company). Consumers will do well to go to www.myfico.com and select the EDUCATION tab at the top, and from the HOME page, select the Topic: UNDERSTANDING CREDIT. There is a wealth of information available there. Furthermore, they offer numerous credit monitoring products-should someone have an interest. My purpose is to promote helpful & free information--not encourage spending money. Go there and make your own decisions.

IV. By Federal law, consumers are entitled to a free credit report from each of the three major repositories on an annual basis. DO NOT be misled into thinking any button saying "FREE CREDIT REPORT" is okay. A lot of money is wasted on these "FREE" report offers. ONLY ONE SITE offers the "FREE" Federal Trade Commission authorized report. Go to http://AnnualCreditReport.com or call (877)322-8228. Note: Watch for check-marks, and read the details so you are NOT buying something you do not need. IF you want your credit scores, you will spend money. They are not necessay to reviewing the content of your credit files for accuracy. Wait until you plan to buy to worry about credit scores. They are themometers to reflect your credit health, and until your file is accurate--your score will not be.

V. Should you have questions about the effects of Collection, Repossessions, Judgments, Liens, Tax Liens, Foreclosures, and/or Bankruptcy have on your ability to purchase a home, contact a reputable FHA Lender in your community. If you have general questions, feel free to e-mail me through my website: http://LookingForHomes.org and I will assist you in getting answers. I spent more than 25 years working with credit-challenged home buyers in the Nashville, Tennessee market, and have access to numerous underwriters, attorneys, and credit reporting agents. Should you live in another market, I am more than happy to assist you in locating a qualified professional in your area. The ACTIVERAIN community is most helpful when called upon. My goal is to share in the successfully home-buying process with people like you.

Take time to read and digest the information beyond this post, and thank you for your interest.

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Randy Mitchelson,APR

Marketing Advisor & Squeeze Mortgage - Bonita Springs, FL

First Impressions are made at First Click

Thank you for promoting the only place online to get your free credit report: annualcreditreport.com

I advise my clients and newsletter subscribers who do not use real-time credit monitoring to pull their credit report from one of the three credit bureaus on a rotating basis every four months. This way they will be able to inspect their various reports on a more frequent basis than reviewing all three at the same time each year.

If they can afford it, I prefer that they subscribe to real-time credit monitoring, especially if they are active credit card and online shopping users. I have had two fraud attempts nipped in the bud thanks to text message alerts I receive from my credit monitoring service. My parents have had three fraud incidents with their credit card in the past 12 months and they do not have credit monitoring. Guess what? They find out the hard way - by having their card declined at the store and having to do the walk of shame if they don't have enough cash in their pocket to cover the purchase.

Mar 21, 2011 06:41 PM

Doug Bullwinkel

E Mortgage Capital, Inc. NMLS 1416824 - Roseville, CA

Mortgage Loan Officer NMLS #281609

AnnualCreditReport.com is the only place to go. The other links were helpful for additional information. Thanks for your post.

Mar 21, 2011 06:49 PM

Samantha Davault

Alexander Chandler Realty - Fort Worth, TX

Fort Worth, TX

Thanks for this information. One problem with the credit score that you can purchse from this site is that it is not the same type of scoring model that a mortgage company will use anyway, so purchasing it is pointless. Get the free report and see whats on there and then let a mortgage professional pull a report with accurate scores.

Mar 21, 2011 06:51 PM

Fred Cope

Reliant Realty in Nashville, TN - Nashville, TN

Looking For Homes With A Smile

Randy & Doug, if we get one more person singing the AnnualCreditReport.com song, we can start a Barber Shop Quartet. I spent 25+years as a mortgage loan officer, and I always began with the Free report, then sat down with them and planned a detailed strategy for making them bankable. I dealt with people who had been dooped into spending hundreds of dollars to "remove" true information from their files. They learned a couple of things beyond the details of their credit files: (1) some loan officers cannot spell "mortgage" much less do one; (2) some will say/do anything with no realistic liklihood the applicant would be able to buy anytime soon. [Having said that, I must emphasize that 99% of the LO's work hard, work honestly, and with genuine concern for their client]. Another thing I stressed was that if a man makes promises and asks for money in the same paragraph, he probably will get the money and forget the promises.

I used FICO's Score Watch and TransUnions credit monitoring for a good while, and learned a lot in doing so. I'm an old Country boy, and I listened to my dad when he stressed that "Nothing in life is free except advice, and that will often cost you."

Keep up the good work.

Mar 21, 2011 07:10 PM

Samantha, you are absolutely right! I meant to say that when stating that it was not accurate until the credit file was accurate. When I got my client's file cleaned up, then I would order a Mortgage Credit Report, and do the credit analysis to see what could be done and in what time frame. At that time FHA did not require credit scores, and I had access to several FHA DE underwriters who would do a traditional underwrite. Credit Scores have become like cell phones--an annoyance you can't get away from even in elevators & restrooms. At some point, the pendullum will swing. We went through a lot of this nonscence in the early 1980s. Credit is like water--it seeks its own level.

Thank you for your contribution, and chime in as you see fit.

Mar 21, 2011 07:25 PM

Dave Sullivan

Real Estate One - Birmingham, MI

Michigan Realtor with an investor viewpoint

Good info if you would like to watch me order my free credit report and find out how to get your real FICO score for free watch this http://www.thecreditguy.tv/get-your-credit-report-real-fico-score-for-free/

Jan 24, 2012 11:30 PM

YOUR FREE CREDIT REPORT

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