There are two good reasons to take advantage of an Experian credit report. The first one is to find out why you have been declined for credit, a job opportunity, or even an insurance policy. The second reason is to prevent that from happening in the first place. When you can find an offer that makes Experian credit report access totally free, there really is no reason to hesitate.
Why Are Credit Reports Important?
All kinds of lenders report your payment history and account balances to major credit bureaus like Experian ReportAccess. These include banks, credit card companies, mortgage lenders, and auto finance companies. These reports are all considered when these bureaus develop your report and credit score.
If you want to take out a new loan, get a credit card, or even buy an insurance policy, the companies involved will probably check your credit. They base the rates that you will receive on your credit, and they may even choose to decline your application if you have poor credit.
This can hurt your ability to live in a nice home, buy a car, or even buy car insurance. If you do manage to get a loan or buy insurance, you might have to pay more just because you have had some financial issues. It might not seem fair to charge more when people have financial issues, but that’s the way business is done.
It might seem odd to learn that even insurance companies use credit reports. But they have found that people with good credit tend to be better risks to insure too.
How Are Credit Scores Calculated?
The exact formula is kept secret, but these are some factors that go into your personal scores:
- If you make your payments on time and sensibly manage your balances, your credit score should be very good.
- If you make some payments a little late or run up a high balance on some credit cards, your credit score might be average.
- If you have defaulted on any loans or credit card balances, you may have poor credit.
It is always much easier to stay out of trouble in the first place, and access to a free Experian ReportAccess credit report can help you with that. You will see the exact information that companies see when they make a decision about your application.
Dispute Errors on Your Report to Raise Scores Fast
The thing is, errors happen all of the time. You might see duplicate entries or references to transactions that you never even made. If so, you have the right to dispute these transaction.
The law really does favor consumers, and if the credit bureau cannot find any proof that you are not telling the truth, they have to remove the entry. This can bring your credit score up very quickly.
Work On Improving Your Credit Report
Now that you can see what factors might make your scores high or low, you can see what to work on to improve them. The most common factor for people with average credit is simply running up too high of a balance on unsecured debt. This could be true even if you always make your payments on time. People with great credit usually keep a very low balance on their cards in relation to their maximum allowed limits.
How Can You Improve Your Credit?
There are really no easy solutions. You have to make a habit about paying bills on time. Also, you should work on paying down balance. If you just pay the minimum on a large balance, it will take you years to pay off your debt. But if you can pay even a little more than the minimum, you should see your balance drop much more quickly.
If you want to finance a house, your mortgage broker may have some tools to help you analyze your free Experian ReportAccess credit report. They can use these special tools to tell you exactly what you can do to improve your credit. Of course, mortgage brokers want to help you in any way possible to get approved for a home loan, but they cannot do it all.
After taking the actions that the broker’s tools suggest, they can do a rapid re-score. Typically, the action consists of paying down the balance, and the rapid re-score costs money. No matter how much help you have, you are not likely to be able to improve your credit scores without doing something.
Use Your Free Experian ReportAccess Credit Report to Stay Out Of Trouble
The biggest thing you can use your free report for is to make sure you stay alerted to any changes and handle them as quickly as possible. Don’t let damaging errors sit on your report for years when you can clear them quickly and conveniently. Also, catch any late payments or high balances that may mark your personal scores down and cost you a lot more money in the long run!
How Do These Reports Work?
Typically, consumers are entitled to request their credit reports. Some private services also offer monitoring services and tools along with the reports. You may have to pay a monthly fee for these reports, but you are free to cancel the service at any time you choose.
You may see a report, and this is basically a list of all of your debts, the money you owe, and how you have paid. In some cases, you may also get a numerical score that you can use to compare to other borrowers. This is exactly the same information that potential lenders will see when they decide if they should lend you money or not.
Why Not Get An Experian ReportAccess Credit Report Today?
It’s simple to take advantage of your free report, and it is even your right! Additionally, this report can give you the information that you need to improve your scores, pay off debt, and save a lot of money in the long run. Smart consumers keep track of their credit.