Every year, thousands of people have their identity stolen. Many do not realize it though, until they try to borrow money to buy a home or a car. By following a few easy to understand steps, they can monitor their financial data by learning how to get a credit report. The information is a snapshot into their borrowing, and payment history.
The paperwork shows many details about the consumer, including their most recent addresses. It also lists the type of loans they have, and if they were late paying their bills. The categories of loans include mortgages, car loans or business loans in their name. It also lists any arrests or bankruptcies. Consumers who find mistakes have certain rights, in getting them removed from the data.
Banks and other lending institutions look at the details to decide if they are willing to let the consumer borrow money. If the individual or family has moved around a lot from one apartment to the next, it may mean they are having trouble paying rent. Lenders can use any negative information as a guideline, on whether they should charge the person a higher interest rate.
The United States has a federal law, allowing any consumer the right to get a copy of their report, once every year. The copy is based on details kept by the country’s three largest reporting companies. They do not send the copies out automatically. Consumers must first ask for the data.
One of the easiest ways to obtain it is by contacting the three largest reporting companies, directly. They each charge a small fee. There are also other companies that also provide the same service for a fee. Consumers can also contact the Federal Trade Commission, or FTC. The Commission is responsible for handling the financial reporting industry, and helps monitor the federal laws relating to the companies.
The Federal Trade Commission also has a pamphlet that consumers can request. The agency will send the brochure, called the “Annual Credit Report Request, ” directly to the person requesting it. Once the individual fills it out, they can mail it back to the agency.
People are also allowed to get a free copy if they have been denied a job or a loan based on the information. People receiving unemployment or public assistance are also entitled to get one at no cost. Some states also permit consumers to get more than just one copy a year for free.
One key piece of information not detailed is the person’s credit score. It is a three digit number that is developed, based on the financial data. Any consumer who needs to know their number has to pay a credit bureau to send them that number.
Almost every week, there are headlines in newspapers around the world about another gang of thieves, who have stolen the personal financial information of innocent victims. It is important for consumers to know how to get a credit report. It can help them monitor their financial information to discover if someone is illegally using their good credit history.