Maintaining proper records and check on income, spending and credit is one of the main requisite of future financial planning. It is very important to keep a track about your finances, the credits availed, timely payments etc., for avoiding any defaults. It is very important to have a clear and high credit score to have a trouble free financing options during times of necessity. One of the effective ways to understand and keep an update about the current standing on your credit score is by getting access to the annual reports provided for free by the three uniquely different companies that maintain your credit score. The free credit reports from all 3 bureaus namely the Equifax, Experian and Transunion maintain the scores of credit of each and every individual.
The annual report provided by the free government credit report will enable you to monitor the financial information and ensure that the transactions and entries made in the report and authentic. It also helps to find out the discrepancies if any that is affecting the credit score. The report provided by these agencies will consist of each and every credit transaction done by the individual and the pattern of payments or defaults. By proofreading the reports sent on an annual basis, one can avoid the future trouble caused due to mistakes in the entries. Each and every individual can get a free copy of the credit report on an annual basis from these 3 Credit bureaus.
The reports provided by each of 3 Credit Bureaus should logically be having similar score of credit. It is however possible to have some variations on account of some credit transactions not being reported by some of the creditors that an individual deals with. Using the annual reports provided by these agencies, one can verify and correct the misappropriations if any, so as to improve the scores and have an excellent record. The report can be obtained by contacting the 3 companies recognised by the government namely the Equifax, Experian and Transunion. One can also get the report online through the AnnualCreditReport.com website wherein all the institutions combine their services to provide a comprehensive report. The report can be obtained through a single request on this website.
Each of 3 Credit Bureaus follows a different method of maintaining the credit scores because of which some variations in the score arises. By tracking the report on an annual basis, an individual would be able to avoid the variations caused by multiple identities, misrepresentations of transactions, time factor etc. The reports maintained by these institutions are marketed and sold to the lenders to underwrite loans, which has a great impact on the chances of future loans and credits that would be availed by the individuals. These institutions also act as middleman’s to sort out the issues if any between the individual and creditors.
Based on the need, one can choose to get monthly reports from these agencies by making payment of the necessary fees. Each agency plays a different role and the same can be used for ensuring a healthy financial score. The report provided by these institutions can also be provided to the insurance companies, background check by the employer, while availing loans etc. Choose to have a trouble free and well maintained financial life by annually tracking the credit scores using the three-in-one credit report provided by the credit agencies.