Your personal credit report tells lenders everything they need to know to help them decide whether to lend money or extend credit to you. Do you know what is on your personal credit report?

Are you certain that your personal credit report is accurate? These and other questions must be answered before you apply for credit or take out a loan. Without that information handy, you may end up paying too much for your car loan, mortgage, credit card, and more.

Worse, you could get rejected altogether and for no good reason. Today, you can get your personal credit report at no cost and I am going to show you how to do just that.

The U.S. Free Credit Report Act has proven to be a real blessing for consumers. The U.S. Federal Trade Commission, which is the government agency tasked with helping consumers, has established through this act that you can get copies of your personal credit report at no cost. Through the three major credit reporting bureaus - Experian, Equifax, and Trans Union - you are entitled to receive a copy of you personal credit report annually from each bureau.

These three bureaus have “all the goods” on you so to speak. If you were late with a car payment and that information has been passed on to the credit bureaus, it becomes part of your personal credit report. At the same time, if someone with a name similar to yours went bankrupt, that information could erroneously be put in your report.

Unfortunately, you may not find this information out until after you apply for credit. Sure, you can correct the problem, but it could take weeks to resolve and delay you from getting a loan. That can be a real problem if you need credit now!

Consumer watchdogs are urging everyone to get copies of their personal credit reports annually. Some are suggesting that consumers space their reports out to one ever four months from the three different agencies.

For example, in January you would order one from Experian, in May from Equifax, and in September from Trans Union. Come the following January, you would order a report from Experian and start the process over again.

You really need to see all three credit reports as they are not uniform. One bureau may have one piece of information about you, while another something else. Your goals are to make certain that all the information in your personal credit report is accurate. If not, then you must take action to amend each error.

In addition to your personal credit report, it is recommended that from time to time you also get your FICO score. Your FICO score is the “grade” that creditors use to determine exactly what your loan rate will be.

Your FICO score isn’t free, however only a nominal fee of approximately $5 to $7 will be charged should you choose to order it.

Are you ready to find out more about ordering your personal credit reports? If so, visit the FTC site for more information: http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm. Click on the appropriate link to go to the proper site and order a copy of your personal credit report today!

To get a complementary step-by-step easy to follow credit repair video and instruction manual that will show you how to increase your credit score by 50 to 100 points in 30 days, visit:
http://www.mortgage-leads-generator.com/credit.htm

Please feel free to reprint this article as long as the resource box is left intact and all links are hyperlinked.

Hartley Pinn has recently created the Mortgage Leads Generator Training Course to teach people how to make over $50,000 a month working part-time (10 to 15 hrs per week) as a mortgage loan officer.

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FAQ: How can I repair my credit?

Personal credit report repair is a major concern for many people. It can be a long and frustrating process. There is no really quick fix. There are techniques used by individuals and professional companies to achieve results. This article briefly covers some of the most frequently asked questions about personal credit report repair.

Can I repair my credit by reviewing and correcting my credit reports?

Yes. Visit www.annualcreditrepot.com to view and print free copies of your personal credit report. Repair and improvement in credit score can be achieved by reviewing the reports for inaccuracies, disputing obsolete and unverifiable information.

Can I repair my credit by applying for lots of credit cards?

No. The credit bureaus store information about how many times and with whom you have applied for credit. A person who applies for numerous credit cards looks desperate for credit and their scores are affected negatively. Personal credit report repair sometimes involves removing inquiries made by companies with whom you have applied for credit.

Can I repair my credit by applying for a secured credit card?

While applying for a secured credit card will not negatively affect your credit report, it is not generally considered to be a part of personal credit report repair. A secured credit card is one which is secured by a deposit into a savings account at a bank. The cardholder can charge up to the amount that is in the savings account and may at a later time be approved for a higher credit limit, if payments are made on time and if balances are paid off on a monthly basis.

Can I repair my credit by applying for an EIN?

This is a technique that is not recommended by law firms that specialize in personal credit report repair. An EIN or employer identification number is a number used by the IRS to designate a business. If you do not own a small business, you should not apply for one. Some companies which advertise personal credit report repair recommend that a person apply for an EIN and use that number instead of their social security number when applying for credit. It is illegal to provide false information on a credit application.

Can I repair my credit by waiting?

If you wait for bad credit to be removed from your personal credit report, then it will take a long time and you will not improve your credit scores. Even people with the worst credit can obtain a secured credit card, have a friend or family member with good credit list them as a co-applicant and work to achieve personal credit report repair. If you do nothing, your scores will not improve.

Can I repair my credit by hiring a credit repair professional?
If you hire a reputable personal credit report repair company, preferably a law firm, then you can repair and improve your credit scores. The process will be less frustrating and probably faster than if you try to do it yourself.

Can I repair my credit?

Yes. You can learn do-it-yourself techniques or you can hire a law firm that specializes in personal credit report repair. You are not stuck with bad credit. There are books and software programs, credit repair kits and lots of free information. It will take time and patience if you try to do it on your own, but it can be done. For more information about personal credit report repair, visit Credit Fix Solutions.

The writers and editors at Credit Fix Solutions are dedicated to providing accurate information about personal credit report repair. Visit us at http://creditfixnow.blogspot.com

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FICO scoring originated from the Fair Isaac Company. The Fair Isaac Company invented the current credit scoring system that turns all of your credit information into a personal credit score. Today lenders still use this credit scoring system to determine credit risk.

The term FICO scoring means, a credit score based on the Fair, Isaac Company or FICO model. It’s important to know your current credit or FICO score and it’s also important to have an understanding of how FICO score is determined.

FICO scoring is used by lenders to figure out what your interest rate will be on loans you apply for. If you’re buying a house the types of mortgages available to you are based on your personal credit score.

That score is based on the FICO model and the interest you pay, as well as your monthly payment, is based on what your personal credit score number is.

The same is true when you get a car loan, as well as the premium on your car insurance or homeowners insurance. Your personal credit score can even affect your chances of getting new employment.

FICO scoring is calculated from a multitude of different credit data and it is grouped into five different categories.

So that you will understand the basics of how FICO score is determined, the percentages below reflect how important each of the categories are in determining your personal credit score.

Payment history (35%)
Your payment history is the largest factor in determining FICO scoring. This includes the number of unpaid bills you have, any bills sent to collection, bankruptcies etc. The more recent the problem, the lower your score.

Outstanding Debt (30%)
How much of the total credit line is being used on credit cards and other revolving charges? High balances or more precisely, balances that are close to your credit limit can negatively affect your credit score. Most lenders think 40%-60% of maximum is ideal.

Length of your credit history (15%)
How long have your accounts been open? High loan amounts that you have paid as agreed and have had open a long time work best. Closing old accounts can have a negative affect because it makes your credit history appear shorter.

Recent inquiries (10%)
Every time you apply for any kind of credit you create an inquiry on your credit report. A lot of inquiries negatively affect your credit score. However, ordering a copy and checking your own credit report or personal credit score counts as a soft inquiry and does not go against your score.

Types of credit in use (10%).
How much is still owed on current mortgage loans, credit cards and finance companies compared with the original loan amounts? Also it’s important not to open a number of new credit card accounts just to increase your available credit. It will have the opposite affect and lower your score.

FICO scoring is based on all the categories of information, not just one or two. Lenders on the other hand will look at a lot of things when they make a credit decision. Your income, how long you have worked at your present job and the kind of credit you are requesting will always be a factor.

There are many things that will affect your financial future and FICO scoring plays a big role in how successful your future will be.

Copyright © 2005 Credit Repair Facts.com All Rights Reserved.

This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative articles that give you the knowledge to correct your own credit and credit report. For more credit related articles like these go to: http://www.credit-repair-facts.com/articles_1.html

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