Ordering one’s own credit report seems to be a source of fear and hesitation for many people. “Will this affect my score? Will my score drop? How much will it drop?”
These are all valid questions and concerns. To add to the indecision and worry that one feels about this “not too clear subject” are all those commercials offering you free credit scores on one side, free credit reports on the other.
Which is the best way? What are the right sources? WHO IS TELLING THE TRUTH?
I plan to clear all of that up for you.
First you need to know that there are two types of credit inquiries:
Consumer Inquiries (soft inquiry) = When a person orders their own credit report for their own information.
Merchant Inquiries (hard inquiry) = When a credit report is ordered on behalf of the consumer for the purpose of obtaining credit.
Long story short: soft inquiries do not affect your credit score. Hard inquiries do affect your credit score.
But of course, it’s not that simple. Let’s dig a little deeper, shall we?
Notice that I said that you are entitled to one free “credit report” per year. By credit report I mean just that “a report” not your credit scores. Credit scores are considered proprietary and are sold separately from each bureau. (Sounds a lot like one of those commercials, huh?)
I know, I know now you are asking yourself “how about all those commercials I see about getting my credit report and scores for free?”
This is where things get interesting.
Yes it’s true; you can get your credit scores for free but let’s consider the source.
(If you are not directly paying for your scores through the proper sources, someone is providing you with your scores, n’est-ce pas?)
Sounds like a hard inquiry to me.
Is it a company that ties you in to their “program” and by accepting your free scores you are tied in to them and have to pay a monthly fee?
Is it a car company that finds out that you have good credit at the same time you do and begin soliciting you to purchase that new car?
Is it a scam that provides you with your free credit score and then steals your identity?
The truth is there is no real way to know the answer unless you read every little bit of fine print or you get your information from the proper sources.
Let me put it this way, if you are getting your scores for free, it is a highly likely that you are paying one way or another.
There was only one website set up to provide you with your free report it is: https://www.annualcreditreport.com.
Through this website you will be able to connect to the three major credit bureaus; Equifax, Transunion and Experian. Conveniently, you will be given the option to purchase your credit score from each bureau as you order each report.
Once you begin this process I suggest you finish it in one sitting. The website is not the easiest to navigate and you have to order your reports from each bureau separately. Three agencies, three orders, three times the fun!
If you are not too happy about spending the next hour or so rummaging around websites trying to figure it all out, the FAQ section gives you other options.
You can:
1. Order over the phone (not a big fan of this myself)
2. You can send them by mail (I like this method best because you have a paper trail of what you have done and it is way simpler than the website in my opinion)
Remember to always send certified mail!!
A great source for more of this information is at the Federal Trade Commission’s website http://www.ftc.gov
The specific link to all things credit related is: http://www.ftc.gov/os/statutes/fcrajump.shtm.
This will share many of the laws having to do with credit along with updated “highlights” having to do with this specific subject.
Here are a few more direct sources to order your credit reports from: (If you rather just purchase the reports and scores)
There are some more advanced strategies that I will be sharing with you about credit reports and credit scores. Let me know if you find this information useful and what other subjects you would like to see me cover.
Hope this helps, feel free to comment.
To Your Success
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22. December 2009 at 9:45 PM
Wow there is a lot more to credit reports then I realized. Thank you for sharing this information. It really goes to show you have to be careful before clicking that button – who knows what you are committing too!
.-= Jan Hill´s last blog ..Dentists: How Social Media Marketing Can Work For You =-.
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7. January 2010 at 1:19 AM
Thank you so much, there aren’t enough posts on this… or at least i cant find them. I am turning into such a blog nut, I just cant get enough and this is such an important topic… i’ll be sure to write something about your site
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12. January 2010 at 10:19 PM
This is great info Jose! I always wondered where to get my credit report and how it was processed safely. Everyone can use this vital info. Thanks so much!
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12. January 2010 at 10:26 PM
Wow. This is the type of stuff that I don’t have time for to look up on my own. Thanks for putting this in perspective. Credit is so important.
Thanks Jose…
.-= Nick Logan´s last blog ..By: Donny Gamble =-.
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12. January 2010 at 10:28 PM
Jose,
Thanks for sharing this information. So many people are unaware that they can get a free credit report, and even more just never even give it a thought.
In today’s society, with identity theft running rampant, it’s more important than ever to protect our good name and be sure to stay in good standing.
Great job!
Kathy J
.-= Kathy Jodrey´s last blog ..Alternative Cancer Treatments – Have You Done Your Homework? =-.
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