Consumer Credit Report

When managing their money, consumers have to realize that they are eligible for a free consumer credit report. This credit report will include information on where the consumer lives and how he or she pays the bills and if a consumer has been taken legal action against for bankruptcy. The consumer credit report companies sell the information nationwide to employers, creditors and other businesses that need it to assess a consumer’s application for employment, credit, insurance or house rent.

A consumer credit report will contain information on where you live and work and will indicate your bill paying habits to your creditors. You have to realize that your personal credit worthiness is recorded on a consumer credit report. The FICO Score, developed by Fair Isaac & Company, evaluates the paying capabilities of people.

Free Consumer Credit Report

Congress has taken out an Act which states that a consumer can get a free copy of the credit report from each of the three major credit bureaus which are Equifax, TransUnion and Experian once a year. This right to get a free consumer credit report is an important tool for consumer protection. It not only gives the consumer a valuable overview when checking the credit report but it also allows to discover and rectify errors in connection with possible identity theft.

As per Federal Trade Commission, the three major consumer credit bureaus have set up one website centrally for people to access their consumer credit report and that site is www.AnnualCreditReport.com.

Why is the Consumer Credit Report so important?

When credit is available, it inspires consumer spending for big items that cannot be bought with cash easily like cars, appliances, other durable goods and houses. Even financing for other kinds of consumer spending like vacations and tuition is also dependent on credit.

The consumer credit report carries the overall outstanding credit both by the types of lenders and by the rates of interest. This report is an important source of current information on the conditions of consumer credit. This report does not include the home equity loans.

What are the benefits of obtaining the Consumer Credit Report?

As a consumer, it is essential for you to understand a complete picture of the consumer credit report and your credit history. The credit bureaus collect information on you and your credit history from the creditors and public records. This information is then made available to your prospective and current lenders. This information helps them to get a decent picture of your credit worthiness overall and your ability to pay up your accounts when they give you credit.

When you get your consumer credit report, you can find out about your credit history and how it is being reported to your creditors. You get the opportunity to comment on your files should there be disputes on the report. You can make sure that the lenders are getting a balanced report on your credit history and then expect fair and accurate assessments from your prospective creditors. You have the right to know what the consumer credit report says.