Please read our disclaimer always use the services of a professional
No bank, credit card issuer, mortgage company, retail store or any other credit provider
will grant you any item, service or product without looking almost exclusively at
your credit scores and the average person has no idea what their scores are and even
if they did, many if not most, wouldn't know what they mean.
For example, most people
don't even know that repeated "pulling" of your credit reports by potential credit
grantors lowers your scores by as much as four points per "pull". You start "shopping"
around for the best rate on a credit card by allowing each credit issuer to run a
credit report on you and your score will take a dive. The difference between a 699
score and a 700 represents thousands and thousands of dollars in interest.
Often,
credit issuers don't make it perfectly clear that your credit history is being accessed
when you respond to their offer for a new card over the phone. The call center sales
representative also doesn't explain and state clearly to you, that your credit history
will show an "official inquiry" which counts against your scores whether you are
accepted or rejected.
Most people don't know that a maxed out credit card lowers
their scores even if they pay on time every month. Many don't know until it is too
late that one late payment on one credit card will cause the interest rate charged
to skyrocket not only on that card but any other cards that have a balance! Most
also don't know that a credit card balance showing less than thirty per cent of the
available balance improves the score. Most don't know that in calculating credit
scores, your payment history counts as 35% of the score, amounts owed count 30% of
the score, length of your credit history counts 15% of the score, new credit is 10%
of the score and types of credit in use is 10%.
What is the truth about free credit
reports? The truth, is that consumers need to read the fine print very, very carefully
and get educated. The truth about credit reports in general is that only part of
the story is being told by one. The truth, is that knowledge is power and without
it your money is being taken from you, your buying power and therefore your future
is being dictated to you rather than by you and that the cost of everything including
insurance is based on your scores.
If asked for my advice to the average consumer?
Worry less about getting a "free" report and more about the real cost of being ignorant
regarding credit. Worry more about the immediate and long term costs of not taking
control of what is reported on your credit report both the correct and incorrect.
Gain some credit knowledge. It is easy to do and will literally save you a fortune.
One thing is absolutely for sure, your money and future and your children's future
will be severely impacted by your credit. How, is up to you.
Author Bio
Pat Hicks is the Managing Partner for www.Iwantafreecreditreport.com, a
web site providing online shopping, reviews of and links to some of the top web based
credit reporting sites. A statement regarding the truth about free credit reports
is found there as well as the link to www.annualcreditreport.com.
Article Source: http://www.ArticleGeek.com -
The Truth About "Free" Credit Reports -