Order your Credit Report

Before you go in for a huge loan application like a mortgage, you must know what your fico score actually is by taking the pains to order your fico scores from the comprehensive, combined online 3-in-1 credit report.

One thing to bear in mind is that banks and credit card companies are in to maximize profit. If they can get away with charging you a high interest rate even though you have a high fico score, they would do it. The best thing for you as a consumer is to arm yourself with this knowledge, making sure that you know what your credit report says and what your fico score is before you walk into a car dealership for instance. This knowledge is crucial as a bargaining tool. Everything in this world is negotiable, including interest rates.

Checking your credit report        

The recommendation is that you order your credit report from each of the three CRAs (Credit Reporting Agency) at least once a year. Not ordering your credit report and therefore not knowing what is contained in your credit profile and the associated fico score could be very detrimental to your financial health. Before you start to do anything about your financial situation, you must first start by knowing what your fico score is and what your credit report says about you. And the only to do this is to order your credit report.

Knowing your credit score is one of the major steps to financial victory. Even if you are not applying for credit, it is a good idea to order your credit report. At least, you will know what your fico score looks like and if it is low you may have the time and opportunity to improve your credit before you actually apply for credit. There could also just simply be mistakes or errors and inaccuracies in your credit report and you would have the opportunity to dispute the errors and correct them before more damage is done to your credit profile. If you want to obtain your fico score with your credit report and want to start on the road to improving your financial profile that would lead to victory and financial success, then you must obtain your true credit report.

What you don't know might hurt you financially 

Remember, the financial institutions have this information and so should you. Paying more on interest rates can turn out to be very costly indeed. For example, a person with a  fico score of 720+ may pay an interest rate of say 5.75% on a mortgage of $150,000, whereas another person with a fico score of less than 550 may pay an interest rate of nearly 9.25% on the same $150,000 mortgage. This translates into a difference of  $130,000+ extra payment on a 30-year mortgage between these two individuals. Why would anyone knowingly throw away such a huge chunk of change? It is precisely because of these differences that you have to take the pains to know what your fico score is and to try to improve upon the score if it is lousy.

It is a good idea to do an annual credit check. Some people may even insist that you order your credit report twice a year. And especially before you go in for a major purchase like a mortgage, order the 3-in-1 comprehensive online credit report from the three credit bureaus. Don't just assume that you have good credit simply because you pay all your bills on time. While this is certainly one of the major factors in determining whether or not you have good credit, that in of itself cannot guarantee you a good fico score. Other factors come into play and often times errors or out-dated information in your credit report could increase your chances of getting rejected for a loan, insurance or even a job. It is estimated by the Public Interest Research Group, a public interest advocacy group, that one in four reports has errors that are serious enough to deny consumers access to credit or to favorable loan rates. If you are rejected for credit the financial institution would usually provide, upon request, a reason code for the rejection.

Annual Credit Check

Many credit files contain inaccuracies that can harm your credit rating, which can possibly lead to rejections when you apply for loans, insurance, or even a job. People sometimes think that they have good credit without actually checking to know for certain. Then they apply for a loan and are surprised to be rejected. They are then surprised to learn that there are some problems with their credit. The best way to find out if you have good credit is to get a copy of your credit report. It's a good idea to order your credit report once a year to make sure there are no errors in it. If there are errors or outdated items or information in your credit report, they could negatively impact your request for credit. Even if approved the terms of the loan may not be favorable to you.

Theoretically, your credit report and or fico score should be the same from all three major credit bureaus. Often times there are discrepancies because not all information is reported to all the credit bureaus at once. One report may show that you still have outstanding debt on a particular credit card, whereas another report may show that the balance is paid in full on that card. When there are inaccuracies in your credit profile they could be due to simple human error or a computer glitch. Lately, however, identity theft has become one of the principal reasons why you must check your credit report and fico score, at the very least, once a year.

Reason Codes for Rejection

Identity Theft, Also known as Phishing

Phishing is considered the fastest growing fraudulent activity online where unwary individuals have their identity stolen. This article provides information to help you identify these scams so you don't fall prey to them, as well as what to do if you discover you've been a victim of fraud.

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The contents of this website are for informational purposes only and do not constitute an attempt at providing financial advise. Please consult a competent and reputable financial advisor if you are seeking financial advice.