Monday, February 1, 2010


Free Credit Reports Not Always Free

If you watch even a bit a television, you have heard the catchy tune for
It is not really free, unless you can cancel before the subscription ensues. Otherwise, you will be paying more than $100.00 dollars a year.
There is a free way however. Our government has set up a truly free website called You can get a free report from each of the credit agencies: Equifax, Experian and Trans Union. But, you must only get one per agency PER YEAR.
This will come in very handy if you are monitoring your credit to clean up a mess, or to get in shape to purchase a home for your family. If you are disciplined enough, you can actually order one report from each agency in four month intervals. Since they mostly reflect each other’s data, this should help you monitor your situation until your goals are met.
Here is the inside track on what makes up your credit score:
35% - PAYMENT HISTORY – The longest possible history of never being late or missing a payment means a good safe risk for bankers.
30% - AMOUNT YOU OWE – The amount you owe on credit cards, auto loans, and your current mortgage, divided by the total of all credit available to you, as a percentage. The closer to 80% or higher, the worse you look to bankers.
15% - LENGTH OF CREDIT – Best scores are reserved for those who have had credit for the longest time.
10% - LAST APPLICATION FOR CREDIT – Recent credit applications can indicate a “need” for money, which hurts you. (Ordering your own credit score report from one of three bureaus does not count).
10% - THE TYPES OF CREDIT YOU USE –Installment loans are items like car loans and mortgages, which are best. Revolving loans like credit cards count less.
A good credit score can also help you get lower rates on insurance, loans, and even help you get a job. I truly hope this information is helpful to you.