Credit reports prepared by credit report companies have become a great determinant on whether one gets a loan or not. It is not surprising that even landlords use it to determine ones credit worthiness before issuing out an apartment. Every citizen is entitled to a free credit report once every year. This is offered upon submission of a request to the effect. Trans Union, Equifax and Experian are the three credit report companies compelled by Fair Credit Reporting Act to do so.

A credit report card contains a lot of information. These include;

• Where you live.
• The means by which you pay your bills.
• Whether or not you have filled suit or gotten arrested or even filed for bankruptcy.

This information is particularly important to;

• Employers
• Creditors
• Insurers
• Landlords and Landladies.

With the number of people defaulting loans growing each passing day, creditors have though it crucial to know a customer’s credit score from credit report companies before extending any credits. Information used to determine someone’s credit score ranges from ones history as far as bill paying is concerned, the type and number of accounts held, any previous late payments, the much owed to individuals and institutions, the length of time one has held the accounts and collection actions. All this information are subjected to statistical analysis by the credit report companies and compared to other consumers having similar profiles. Each factor is awarded points accordingly and summed to come up with the final score. There are many benefits of a high credit score amongst them are;

• You will get facilities like loans at lower interest rates.
• You get a house to rent easily.

Enlisted are just but a few of the benefits that go with a good credit score.

There are instances that credit report companies may include inaccurate information that may affect the authenticity of one’s credit score. In such a situation, one is required to write to any of the credit report companies informing them of the information you deem inaccurate. If possible attach testimonials to that effect. Provide all the information that usually appears on the credit report. Be detailed complaint and request that the information be corrected or deleted. It’s important that you send the letter using a registered and certified mail. The credit report companies will then investigate the matter within a month and then it will indulge the said organization. Immediately they receive a feedback from the organization, the credit report companies will correct the information. The credit report companies will then send you a written result and a free copy of the corrected credit report.

It’s important that you know your credit score so that you are to manage it. Ensure that you at least demand for a credit report from the credit report companies once a year so that you confirm that the information given is accurate. If you have not requested your free annual credit report call, you better contact any of the three credit report companies now.