How can I get a copy of my credit report?

What Are My Credit Report and Credit Score?

When you apply for a line of credit, lenders like to know how much of a risk it is going to be for them. In other words, what are the chances you are going to pay them back the money they are lending you? The method used to determine this is a reporting system that identifies a credit score for individuals and provides a full report on the person's credit history. So, when you obtain a line of credit and start making payments your lender sends periodic updates to the three major companies that track this information: Experian, Trans Union and Equifax. The "reports" produced by the three companies track:

• Amounts you have borrowed from creditors and or available amounts on lines of credit for future borrowing.
• A history of your payments to your creditors
• Recent inquiries into your credit report by lenders

All of the above information is used when determining your score. The credit score is a number between 0 and 850 that acts as a swift method for banks to determine the risk in loaning you money. The higher the score, the lower the risk you represent and the more likely an institution will feel comfortable loaning you money. A low credit score does not mean that no one will loan you money, it simply puts you in a category of higher risk.

Why Do I Need to Know About This?

If you apply for an auto loan, having a good credit score can help improve the chances that you will get the loan with the rates that you want. Knowing your score and having a full copy of your report on hand can not only tell you if it will be harder to get the kind of loan you want, it can help you get it. When you get a copy of your report you might find that information has been incorrectly reported about your payment history or credit accounts. There is a mechanism in place for disputing this information if this is the case. You can also get a look at who you owe money to and how much. Most importantly, frequently checking your report can protect you from identity theft. After examining your score, you may decide to wait and bring your score up by paying off debts or clearing up disputed information on your report, before you apply for a loan.

You can get copies of your credit report online, through Experian, Trans Union and Equifax, or a variety of credit and credit report services offered online to consumers. Everyone is entitled to one free copy of their credit report per year. You may have to write and mail a request to each of the companies to receive it.

• Remember to get your license and registration with the state as soon as possible