Bob Dreizler's Resources: How I Learned to Love a Good Credit Rating
How I Learned to Love a Good Credit Rating
With so much talk lately about identity theft, I thought I should follow experts' advice on how to guard my identity from theft. (See "Protect Your Good Name" in this Newsletter.) First on the list is "Check your credit reports." It's also important to be aware of which accounts are still considered "open" (although possibly not used for years), and what key factors the credit bureaus use to judge your credit rating.
Your can get your free yearly credit report by accessing the "one-stop System" on the internet at www.annualcreditreport.com ; toll-free phone (877-322-8228); or by mail: Annual Credit Report Request Service, PO Box 105281, Atlanta, GA 30348-5281. Be sure to include your full name, current and previous addresses, your social security number, and your birth date. I first tried to access the System by phone, but the computer could not recognize the "G" that I spoke for my address as a "G," so I eventually gave up.
You also can contact each of the credit bureaus separately:
- Equifax - www.equifax.com or (800) 685-1111
- Experian - www.experian.com or (888) 397-3742
- TransUnion - www.transunion.com or (800) 888-4213
The good news is that the process to obtain your free yearly credit reports has been simplified. You can now access all three of the main credit bureaus (Equifax, Experian, and TransUnion) at a "one-stop System" through the internet at: www.annualcreditreport.com Just be aware that your credit reports may be free, but to be informed of your credit score, you will have to pay $6.95 to learn your Fair Isaac Corporation (FICO) score, "what your FICO score means to you," and factors that impact your score.
Your FICO score is the credit score used most often by lenders. However, the credit file and credit scoring model used by some lenders may be different. In fact, TransUnion actually uses a different scale (maximum of 925) than the FICO scale (maximum of 850).
If you use the "one-stop System" listed above, make sure you return to the home page before proceeding to the next credit bureau site, or you might get "logged out" from the home page. Each bureau tells you how you can dispute inaccuracies in your report. IMPORTANT NOTE: Cancel department store cards that you aren't using. Lenders see them as potential financial liability. When you request a retailer to close your open, in-good-standing account, make sure you have the company note in your file "account closed at consumer's request," and to send you a letter to that effect, or it could send up a red flag to your potential future lenders.
To order your FICO scores online: www.myfico.com The cost is $14.95 for 1 credit report and 1 FICO score from one of the three main credit bureaus, or $44.95 for all three reports and all 3 scores.
For more information from the Federal Trade Commission about the Fair and Accurate Credit Transaction Act, go to: www.ftc.gov/bcp/conline/pubs/credit/freereports.htm