Personal Finance

Conduct your free credit check

A free credit check can prove to be very beneficial for credit consumers. Credit is increasingly useful nowadays for carrying out purchases. A free credit check can let you find out your financial standing and how to improve your current situation.

The right to see a credit report has been enacted into law. The Fair Debt Reporting Act has given rights to consumers of credit. A free credit check means that your credit information does not have to remain hidden from you. Therefore when anyone gets turned down from a loan, they can find out why.

A surprisingly large portion of credit reports contain errors. By conducting a free credit check, consumers can find and eliminate these errors. Without a free credit check right, many people might be left clueless why they are getting turned down from loans and not know when there are errors on their report.

Also there has been a growth in credit fraud and identity theft. By doing a free credit check you can prevent such fraud and make sure that there are no unauthorized transactions listed on your credit report. In many cases identity fraud takes a long time to discover. If you are conducting yearly free credit checks, you can identify fraud on your report earlier and do something about it before it ruins your credit.

Another advantage of conducting frequent free credit checks is that you can find out what transactions are improving or ruining your credit. This will make you a more informed user of credit. Often people do not realize what may be hazardous to their credit report. For example frequently applying for credit can put inquiries on your credit report and diminish your credit rating.

A free credit check can also help you find ways to improve your credit score, such as closing extra credit accounts even if they have a balance of zero.

You can carry out your free credit check by obtaining a copy of your credit report from one or all of the three main credit reporting bureau, Experian, Equifax and TransUnion.

If you find any errors on your report during your free credit check, you will have to contact one or all of the three reporting bureaus to get the error removed. The bureau will process your request and either approve it or ask for more information.

You can get a copy of your credit report anytime during the year. If you want to check your credit twice a year, you might have to pay a fee to acquire your credit report. However the fee is small and if you find any errors, you may save yourself from a lot of tensions later on.

Online reports have made it easy and convenient to conduct your free credit check. You can access your credit report within seconds from several websites. Some websites will even allow you to get a copy from all three reporting bureaus, so you are able to do a three-in-one credit check.