Consumers should review a copy of their credit report annually to ensure that the information is accurate. To request a copy choose one of the following methods:
· Internet: www.annualcreditreport.com
· Toll Free Number: 877-322-8228
· Mail: send a copy of the Annual Credit Report Request form to: Annual Credit Report Request Service, PO Box 105281, Atlanta, Georgia 30348-5281 Copies of the form are available at www.ftc.gov/credit.
Information you need when making the request will be your social security number, date of birth, and address if you have moved within the last two years. Each of the three nationwide reporting companies may request information only you would know to maintain the security of your file.
You can select all three company reports at one time or obtain individual reports at regular intervals during the year to guard against identity theft.
The three companies that currently post individual reports are: Equifax, Experian, and TransUnion. If you have already ordered your report and need additional copies you will be asked to pay a fee.
A FICO credit score is not included in the credit report, but is based on the content. A fee of approximately $15 is charged when you request that it be included in your report. If you are going to make a major purchase or seek a new mortgage; you should verify that the information in your credit report is accurate and may choose to order your FICO score. FICO credit scores have a scale of 300 to 850. The average person has a score falling between 600 and 700. Scores at 620 or below are considered high risk and may result in higher insurance premiums, higher interest rates on consumer loans, or denial of a loan application.
To maintain a healthy credit score always pay your bills on time; keep the outstanding balance on credit cards to ½ of the available credit; select bank cards and major lenders rather than small market lenders for financing; the length of time you have shown experience in using credit also adds points to your score. Do not close all of your zero balance credit accounts if you have high balances on the remaining cards. Work to pay down your total debt and avoid frequent switching of balances to new cards.
Credit scores change slowly. If you discover incorrect information in your credit report, follow the directions provided to file a request for verification or removal of the information. If you have special circumstances (illness, prolonged unemployment) that has impacted your credit report adversely you can compose a letter of explanation and ask that it be included in report information that is shared with lenders.