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Homebuyer job No. 1: Check credit report
TALLAHASSEE, Fla. – Feb. 4, 2010 – Federal law allows Americans to obtain one free credit report annually from each of the three major credit reporting agencies. Anyone who needs a mortgage to buy a home should consider ordering the reports first – before they start a home search.
“People who got caught up in the hectic pace of holiday shopping may not have taken steps to protect their personal information,” says Florida Agriculture and Consumer Services Commissioner Charles Bronson. “Most credit card bills are now coming due, so it’s the perfect time to make sure there are no unauthorized charges on their accounts or other fraudulent activity that could impact their credit.”
It’s been nearly five years since a change was made to the Fair Credit Reporting Act that requires the credit reporting agencies to provide a free report to consumers who request one. The change was made to encourage consumers to identify potential identity theft quickly.
A credit report contains information about a consumer’s credit history, including a listing of all credit cards, loans, bill payment history and bankruptcies. Major consumer reporting agencies sell the information to credit card companies and other creditors, insurers, employers and businesses that review it when consumers apply for credit, insurance, loans and employment. A poor credit history can result in rejection of credit or higher interest rates on a loan or credit card.
Bronson recommends that people not get all three credit reports at once; they should space them out over twelve months as a way to monitor their credit throughout the year. The credit reporting agencies usually have similar information, so checking one report every three months would allow them to quickly spot mistakes or fraudulent activity.
The three major credit reporting agencies are Equifax, Experian and Trans Union. To obtain a free copy of reports from these agencies, go to: . Consumers can also order their reports by calling tollâfree 877-322-8228.
Important note: Many websites charge a fee for credit reports, and consumers should be wary.
© 2010 Florida Realtors®
