Check Credit Report - Need to Know

What you don't know could hurt you, financially!

It is always a good idea to periodically check your credit report for errors and problems so that you can correct them. And, you are entitled to receive one free report from each of the credit reporting agencies (CRAs) each year. Who are the big three CRAs: Equifax, Experian, and TransUnion.

To get your free credit report online, contact each CRA though the Internet and request a credit report. There should be no charge. If there is, then phone the company for assistance. While there are services that will obtain the report from each of the three CRAs (saving you some time), there have been issues where the requested reports are not received, and yet the CRA will have your request on their database as being issued. The process to correct this is a lot of aggravation.

Here's a real case with a leading credit reporting service that provides credit reports from the top three CRAs.
"This is the second year I have used it [the service] and have had problems getting my Equifax report both times. I'm not able to do it online and when I call Equifax (I, of course, get someone in India), they try telling me I have already requested it and I will now have to pay for one.

I just about shouted at the guy today because he couldn't understand what I was saying, and I was confusing him by going off his script, and all he could do was keep telling me I have to pay for one. I tried explaining to him it's probably showing I requested it; however, I never received it so there's an error.

I think my cat would have understood me better, when I explained it to him, than the guy I was talking to! If not, at least he would have purred some for me!

I got the other two CR's with no problems; Equifax is the only one giving me grief. "

The problem was that the Service reported to the agencies that reports were issued, when in fact the Equifax report was not. This is why it may be safer to request your reports directly from each agency and avoid the middle-man (Service). Incidentally, this is not the only person who has experienced this problem.

Ok. Let's discuss what actually impacts your credit score; more specifically, the differences between hard and soft credit checks.

Whenever you request a credit card, or open an account at a store, or apply for a loan of any type, you have to give permission to the creditor to access your credit report. Are you aware that the inquiry could negatively impact your credit score? An inquiry occurs when another party examines your credit history and credit score. Hard inquiries affect your credit score negatively; soft inquiries will have no affect.

Soft vs. Hard Credit Inquiry
A Soft inquiry (also known as soft credit checks or pulls) occurs frequently without your permission. They occur under the following conditions:

• When you request it for yourself (note that requesting credit reports may be free; credit scores are not)

• Initial credit checks by credit card companies when soliciting your business. (This is when you receive that unwanted mail for new credit cards)

• Initial credit checks by loan companies for pre-approval on loans

• Employer inquiries when applying for a job, or in consideration for a promotion, etc..

• Insurance and credit card company periodic reviews for ongoing credit.

A Hard credit check or inquiry does impact your credit score negatively. It occurs under the following conditions:

• Applications for new credit cards or accounts

• Requests to activate pre-approved credit cards (those cards you have received in the mail that you decide to activate)

• Activation of new cell phone contracts (consider this when you decide to change plans)

• Opening a new checking or savings account at some banks and credit unions.

When you review your credit report, you will see entries for both soft and hard credit checks. If any hard credit checks are incorrect, contact your affected agency and have them remove the check (and see if you can have the impact on your credit score adjusted). And try to keep hard credit checks to a minimum.

The author has an MBA in Finance and extensive experience with financial institutions. You can also check out his latest website on Free Credit Check which provides sources for credit reporting and credit scores, or Check Credit Report for understanding your credit report information and ways to improve your credit score. Article Source: http://EzineArticles.com/?expert=R._Dodger