Monitoring Your Credit Report

Before you even attempt to get a bad credit mortgage, there are a few things you should know before you start home shopping. For example, did you know that you have three separate credit reports? Did you know that each one has an entirely different credit score? That’s right, three different credit scores. Usually these credit reports and credit scores aren’t too different, but some minor differences may exist, this means that you need to monitor all three to stay on top of your credit. You’ll usually find that there is only a less than 75 point difference in reports, but 75 points in your credit score range may be the difference between getting a loan and not getting a loan.

Everyone has the right to get one free copy of their credit report from each of the three main credit reporting agencies; Experian, TranUnion and Equifax. Each of these reports should show all your credit accounts including car loans, mortgages, personal loans, store credit and credit cards. These reports also have a credit score tied to the information in the report, with each credit reporting agency using their own formula for determining the score. Some of the factors used in determining your score include the length of your credit history, how much credit you are currently using, if you’ve recently applied for a lot of new credit, if you pay your bills on time and the variety of the credit you use. Although the credit report is free, you will usually need to pay a nominal fee to get the credit score.

The best way to monitor your credit is to get one of these free credit reports every four months. This is the free, easy way to make sure that all the information is correct and ensure that there is no suspicious activity. By checking your credit every four month, you can always be on top of things and catch any identity theft in its earliest stage. If you do notice any false information or suspicious activity, you should immediately report it in writing to the credit reporting agency and put a hold on your account so that no one can pull your credit report without your prior knowledge. This makes it harder for someone to use your identity to get credit.