Terry Parker asked:


Everyone knows that when you shop for a car, house, or anything else you plan on purchasing using credit, the terms and rates will be dependent on your credit rating. Therefore, many consumers will pull a personal credit report to use when shopping around to see what type of deal a merchant, creditor or lender may be able to give them.

Many consumers like to use a personal credit report when shopping for two reasons. One reason is that consumers know that inquiries into their credit history can lower their credit score. So it is very beneficial to keep credit inquiries to a minimum. Also the consumer may have to pay a credit report fee to the lender or creditor when they pull a credit report.

But consumers often wonder why a creditor will not accept a recent credit report especially when it was recently obtained. Consumers will find out that a creditor or lender may use the recent consumer report at first just to give an estimate of what terms and rates may be available but before an actual sale or transaction can occur the creditor or lender will need to pull another report. There are several reasons why another report will be needed.

A creditor or lender must always take action to protect itself and its investors by performing the proper due diligence on each deal and this includes pulling all consumers credit reports directly. With technology today it would be very easy for someone to fabricate a consumer credit report. This could even be as easy as electronically cutting and pasting a name on the credit report of another person. A creditor or lender must take precaution and pull a credit report directly to protect everyone. This adds an extra layer of protection for everyone. Identity theft is on the rise and the FBI has declared it a national epidemic.

Another reason is because the report that a lender or creditor may receive is very different from the consumer report. A basic consumer report is what an individual gets when they order their own credit history. This report can be obtained from a local credit bureau or from one of the big three: Experian, Equifax, or Transunion. The costs for these typically range from $8 to $15. Typical consumer reports contain basic personal information, some employment history, different credit accounts, some credit history and may include a credit score.

A merchant on the other hand will pull a full merchant report that will contain more information than a basic consumer report and will provide it with more detailed breakdowns. The merchant report will also show a complete FICO scoring system rating for the applicant which will include a full detailed credit history breakdown. In essence the lender or creditor has a full merchant scored report which is much more accurate than a regular consumer report. So a personal consumer report may be used to shop around to learn what may be available. But if you are serious about a purchase and want to see exactly what terms and rates you can get be prepared to have a full merchant report pulled. The good news is that you may be able to get a better deal than you thought was possible based on your consumer report.



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Liz Roberts asked:


You may never see one, or visit one, but the credit reporting agency is always there in the background. These are the companies that assign credit ratings for both corporations and individuals. The credit rating is a way of measuring credit worthiness-or in other terms, the ability to pay back a loan.

You may envision a remote room in an unknown place where individuals in lab coats collect and collate personal data on people. Actually, in the earliest days of credit reporting, this was exactly the case. The ratings were compiled by hand and banks could call and check on anyone they wanted verbally. In modern times, the data is sent in via magnetic tape reporting or secure data transfer and the only times humans really involved is when there is an inaccuracy on your credit report that needs to be investigated.

There are hundreds of extensions of the “Big Three” Experian (formerly TRW), Equifax and TransUnion that are located all across the country. Because the credit bureaus competitors and do not share information with one another, it is a good idea to check the Big Three regularly to ensure there are no errors or omissions on your personal credit report.

Thus, it becomes the responsibility of the individual to check up on the people that are checking up on everyone else. Changes in the statutes for credit reports now make it possible for everyone to get one free report from each of the three major credit bureaus per year.

Looking at your own credit report will give you valuable insight on how your history is being rated. It would also help to understand the laws that govern how these agencies are able to do business. Know your rights! As the old saying goes, “If you don’t know your rights, you don’t have any.” There may be times that require you to challenge something inaccurate on your report. Since your credit report is the way many firms will “know” you, you want every item in it to be absolutely accurate.

You may think that you have a good credit report but a credit report that has something questionable contained within it may be the difference between getting that new credit card or auto loan and being denied. And if you’re in the process of applying for credit without this knowledge, you can be turned down. This is why checking up on your personal credit report and going through the complaint or correction process if necessary is so important.

Since the credit reporting agency is the standard of how the world determines credit worthiness, make sure that any lenders or retailers you want to do business with are reporting to one of the major agencies and that information gives a one-hundred percent correct picture of how you handle your personal finances.



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Ray Eddings asked:


The yearly summary of your annual personal credit report, the report which tells how the consumer is basically paying the companies to which he or she owes money, is a major factor to judge your credit worth. The annual credit report for every person is maintained by the financial institutions and the loan providing companies. The various companies include their outputs in the credit reports. These reports are a collective effort of the creditors or the landlords etc. who are a major part as loan providers. The annual personal credit score and report is the indicator of your borrowing habits throughout the year. The annual credit report for any person influences the creditors and the lenders to extend or cancel your loan.

There are lots of uses for which a personal credit report is maintained. The major uses of these reports are:

-By looking at the report, various companies decide the status of your coming loans. The companies decide whether to continue your loan or not. The report suggests the financial institutions about the risks that are involved if the finance group gives you a loan.

-If your existing lenders move away and do not provide you with the loans then finding other lenders can be a tough job if your annual credit report is not good.

-Credit cards also will turn more expensive for you if you are not able to maintain a good annual report. Sometimes a bad report or score would not allow you to access your credit card and even getting a new card would not be possible.

-Sometimes, renting a house would become even more difficult because some house owners check the credit report of the paying guests.

There are a few factors that you need to know so as to maintain your annual credit report and give it a good shape. Keep in mind that FICO system is considered by many financial banks and institutions. You need to maintain a good FICO score. To maintain a good credit score, these scores are required to maintain a good annual report. Keeping a regular check of your annual report can help you maintain a good report and scores.

Many financial institutions provide free credit check for your credit reports. These are provided to any person by these institutions so they can easily maintain their credit scores to a good level.

The importance of annual reports and scores are clear and these are required to you in stages when you need money the most, so also keep your payments on time. Never delay your payments to the lenders. Even your monthly installments and your loan repayments, be it monthly, yearly or quarterly must be paid well in time just to maintain goodwill and also a good annual credit report by a person.

So try and consult financial institutions and maintain a good credit report for your benefit.



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