A 10-Step Take Action Plan: Part Two - Getting Your Credit Reports

Today, you have access to your credit information all day and every day. This is wonderful news. Consumers now have the opportunity to quickly correct and maintain credit reports. It is mission- critical for consumers to seize that advantage by assuming responsibility. Lenders, employers, and vendors judge you based on your credit reports and scores, and they know that we are capable of doing so. The days of excuses are in the rearview mirror.

You can get started by acquiring a copy of your credit reports from each of the three major bureaus. It is important to get reports from each of the three - not just one. The bureaus do not share data, so you need to get a full accounting of everything that is being reported.

You options are as follows:

OPTION 1: Free Credit Reports

By law, each of the nationwide consumer reporting companies, Equifax, Experian, and Trans Union, must provide a free copy of your credit report, at your request, once every 12 months. To read more about this, a good source is the Federal Trade Commission’s Consumer Alert that you can download at http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt156.pdf.

You can access this program in one of three ways:

• Go to http://www.annualcreditreport.com; or
• Call 1-877-322-8228; or
• Complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You can download the form with instructions at http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt156.pdf.

WARNING: I understand that during financial hardship, free credit reports are very tempting; however, I must warn you that these reports are very difficult to read.

This program does not offer free credit scores. It is highly recommend that if you decide to take advantage of this program that you order your scores at the same time. The fee is usually around $7.95 per bureau.

A Warning About Imposter Websites

Only http://www.annualcreditreport.com is authorized to provide the free annual credit report mandated by law. Other websites make claims for free credit reports, free credit scores, or free credit monitoring, but they are not affiliated with the program, and they are likely trying to sell you something.

OPTION 2: Third-Party On-Line Vendor Reports

There are many websites that offer credit reports and scores to consumers (i.e. freecreditreport.com, truecredit.com, etc.). They offer multiple ways to get your reports. You can make a one-time purchase, or join a monthly program. You can get all three reports and one credit score, all three reports and three credit scores, or one report and one credit score. In all cases, the data is taken from all three credit bureaus, and the scores are calculated by applying very general criteria that is not specific to any one use. Here is the problem with third-party credit report vendors — the scores generated by these companies are not realistic to the lending industry. For instance, many third-party vendors use a score range between 501-990, but the scores used by 90% of the lenders and creditors across the nation are classic FICO scores that range from 300 to 850. So whenever joining an on-line credit watch program, you want to be sure to choose a program that uses a score range as close to the classic fico as possible.

Here are a couple of resources that use a score range that is very close to the FICO range of 300-850. Both of these companies offer memberships that give you access to your updated credit reports and scores as often as you would like, and pulling your reports from these companies do NOT cause a hard inquiry to your scores.

• Credit Keeper - Take advantage of CreditKeeper for the first 30 days at no cost. After that, CreditKeeper is only $ 9.99 per month, until you decide to cancel. This is an Internet-only offer, so you will need to sign up on-line.
• Privacy Guard - Now, you can try PrivacyGuard with the first 30 days for just $ 1. After that, Privacy Guard is $ 16.99 per month until you decide to cancel.

OPTION 3: Reports From the Major Credit Bureaus

The reports that you receive directly from the three credit bureaus are easy to read. More importantly, going straight to the source of the data will ensure that you have the most complete information being reported about you. This includes your credit accounts, your credit history, and your personal and demographic information.

But there are a few things to consider with this option. Experian and Trans Union’s Consumer site, truecredit.com, no longer offer FICO scores to consumers. As mentioned above, FICO is the scoring range used by 90% of the lenders in this nation. Point is, that if you purchase a credit score directly from Experian or Trans Union’s truecredit.com, the score will be misleading and will not be realistic from a lender or creditor’s point of view.

What Can You Do?

1. Here’s the good news, Trans Union still offer’s FICO range scores through their website at www.transunioncs.com. This is the only site where you should purchase your actual Trans Union report and Trans Union score.
2. As far as Experian, as of February 2009, consumers do not have access to their FICO score based on Experian data at all. So our advice is when using this option of going direct to the bureaus, you should only purchase your Experian credit report (NOT SCORE). The best gauge to determine what your Experian FICO score would be is to compare the information on your Experian Credit Report to your Equifax and Trans Union reports. However, if you feel that you MUST have your Experian score, then we suggest that you go onto the next option.

Here is the information you need to purchase your reports from the bureaus directly:

• Equifax Single Report and Score - Score Power - Cost: $ 15.95 (800) 685-1111
• Experian Single Credit Report - Cost $ 10.00 (888) 397-3742
• Trans Union Single Credit Report and Score - Cost $ 14.95 (800) 916-8800

WARNING: When you log onto each site, they will try to up sell you with many different products, including credit watch programs or 3-in-1 credit reports and scores for three times the price. Make sure that you only purchase the credit report and score from that bureau as outlined above.

If you have been denied credit or insurance within the last 60 days, if you are disabled, unemployed, or on welfare, you may be entitled to a free copy of your credit report. If this is the case, send a written request to each credit bureau.

In Conclusion

Remember that every feat, small or large, deserves appreciation. One point can save you thousands of dollars; and one point can make the difference of whether or not you have access to funds to send your kids to college. Get your credit reports and scores TODAY!

In Part Three you will learn some great tips about how to read your credit reports and scores. Be sure to keep an eye out for this important information.