As a realtor, one of my main purposes is to make sure buyers are readying themselves across the board for the purchase of a home. We all know how important credit scores are for home loan approval, but how many know that you can actually get your credit reports free, from the three credit agencies, every year? In talks with my buyers, I was surprised to see that many did not know that they had a legal right to this information on an annual basis, and that it’s completely free!
Well, I don’t want anyone else to lose out on that imperative information. So, if you want to learn more about why you should request your credit reports from the three agencies (Equifax, Experian, and TransUnion) each year, with an explanation on how, then read on!
1. In Case of Identity Theft
Identity theft is an issue that is best caught as soon as possible. One of the best ways to do that, and something that certainly doesn’t hurt, is to review your credit report for any unrecognized accounts. If a new credit card account was opened using your private information, like your SSN, then you can report it to the Identity Theft website that’s run by the Federal Trade Commission and get a personalized recovery plan.
2. To Make Sure Accounts Have Correct Recordings
Once you have your credit report in your hands, one of the first things you should do is make sure that your payments were recorded correctly by your lenders. If you don’t see certain payments, duplicates of some amounts, or other mistakes that don’t match your records that would be a good time to contact your lender to get the mistake corrected. Then, they can update the credit bureaus that they report to and your report will have the corrected information.
3. Make Sure Negative Information is Removed
One silver lining of credit history is that negative information does eventually fall off. How long it takes for them to come off your credit reports depends on the type of information, although most fall off within seven years. Something to keep your eye on when looking at your credit report is to check any negative item by making sure it’s supposed to still be there. If you want to read more about when negative information should fall off, see this article.
Something to note: Not all lenders report to all credit bureaus, which is why it’s so important to request your credit report from all three. That way you can compare them all in case the information is correct, and present, just not in the report that you’re looking at.
So, How DO You Request Your Credit Reports?
By now you must be thinking, “Well now that I know how important credit reports are, how DO I get all of them?” Well, I have some good news for you! It’s actually very easy to request your annual credit reports from all three agencies, all at once.
The federally authorized website AnnualCreditReport.com is the best, and most secure, place to get this information from. You just need to enter your information once, submit one request, and then you can expect credit reports back from Equifax, Experian, and TransUnion. It is actually that easy.
And for one last piece of good news, all three agencies are making credit reports available weekly to consumers because of the COVID-19 pandemic. It’s never been more important to be in the know so you can plan ahead as best as possible.
Interested in more tips like these? Each of my monthly newsletters comes with a new Buyer’s Tip. If you’re interested in seeing more, along with current real estate market stats and tips, then you can subscribe here.
About Gerardo Zavala, Realtor
There is a true passion for connecting people with real estate that makes me fall in love with my career over and over again. While my title says, REALTOR® I think I am much more than that. For example, I am present and actively listening to my client’s needs, on the spot when things are urgent, and by your side to say “congratulations.” Most of my clients will say that I am a connection away from support no matter the situation, day, or time. In my opinion, customer service, educating the client on progress and next steps, and overall satisfaction are my top priorities. How can I help you?
