What your free credit report can and can’t tell you.

(that you need to know!)

Not long ago, the Federal Government decided that all consumers should be allowed one free credit report per year. Wait, hold up. The Federal Government is giving something away? For Free? Yup. But don’t get too excited about this so-called free gift, there’s a catch with their free credit report.

https://www.annualcreditreport.com/index.action

You do in fact get a free report once a year. Unfortunately, this free report is missing what you really need.

Your Credit Scores.

Knowing what shows up in your credit report is a great first step to creating a plan of action. It tells you some important things you need to know. Sadly, this free report doesn’t tell the whole picture.

It will show which creditors are reporting. Keep in mind, there are those that won’t show up in this free report(more about that later).

It will show your payment history, length of history, along with any missed payments for each account.

This free report will show any and all credit inquiries you or anyone else has made. That includes anyone who’s checked your credit file for insurance purposes, employment or offering credit. Did you recently apply for a car loan at a dealership? It will show all the places that dealer tried to get you approved(i.e- multiple inquiries for that one application).

That’s all great stuff, right? Sure, but knowing the true picture of your credit file is much more important than just seeing a snapshot of it. The free report leaves out quite a bit of vital information that a banker sees when they pull your credit file. When any mortgage company, banker, or lender pulls your credit file, they will see a much more detailed report than what you get to see in your “free” credit report.

Isn’t that unfair? Absolutely it’s unfair! You should be able to see the exact same information in your free credit report that a lender will see in their copy. But the way the system is now, you won’t.

So what exactly does a Lender see in your credit file that you don’t see in your free credit report?

For starters, the most important piece of information: your credit scores. From all three credit bureaus.

In your free annual credit report, you get a report from all three credit bureaus MINUS any of your credit scores. That information is way too important for you not to have.

Your credit scores are what all creditors use to decide whether to offer you financing or not. And that includes a mortgage lender as well. The time to make sure your credit file is mortgage lender ready is not when you’re looking to buy or refinance a home. It’s BEFORE then.

So if you can’t get scores with your free annual credit report, how can you get them? And where can you get them?

I hate to be the bearer of not good news, but, to get your credit scores you’ll have to pay for them.

That’s actually the best way to get them.

It’s true you could get your scores just by applying for credit. And if you’re denied, the lender has to give you a copy of your credit report with scores for free. BUT…….

That means there’s a credit inquiry on your file that stays on your report for the next two years.

When you’re ready to apply for that new home, car, or whatever, then this inquiry will be added to the others and drop your credit scores. Possibly to lower than you’ll need to qualify.

As you can see, that’s not the best way to get your scores.

Fear not, there is a better way.

There are company’s out there where you can either get a subscription or pay for a one time report with scores.

I agree you shouldn’t be forced to pay for what actually belongs to you. But the industry set it up that you do.

So to get your true financial picture and accomplish your goals, you’ll need to get your scores and full credit report. Learn what’s reporting in all three of your credit reports BEFORE you want to apply for anything important. Don’t let your credit report’s inaccuracies prevent you from accomplishing your goals. Once you receive your full credit report with scores you can see what’s going on that’s dictating your scores-good or bad. And fix anything that needs fixing.

DON’T FORGET– Fixing errors or improving and changing your credit report takes TIME. Plan on at least 6 months to a year to get your credit report straightened out, reporting accurately or improved. Plan on it. And if you need help in deciphering what’s on your credit report, I have a membership that offers you that as part of it. (Note: Silver or Gold Elite Memberships only)

Stay with me to learn all the ways to improve and change your credit report and scores. It’s not only possible, you CAN do it!

Helping you claim Victory over your money woes,

Poni S