It is very important to have a good credit rating because they have a great impact while applying loans and credit cards. You can even get your credit report for free in a year from the 3 major credit companies. You might be thinking that what is credit rating and how to get a credit report. Well the answers are as follows:
What is credit rating?
It is very important to have a good credit history. All the insurance companies, mobile companies, utility companies, associations, landlords, creditors, employers and banks look for this information to check your credit worthiness. You past payments play a very essential role in future agreements. The following are the various ranges of credit scores:
- 0 to 600: Poor credit score
- 601 to 659: Fair credit score
- 669 to 699: Good credit score
- 700 to 758: Great credit score
- 760 and above: Excellent credit score
If you have less credit score, then it can be very well improved quickly by taking certain steps. You need to know each and everything about the credit report.
- Gain knowledge: There are lots of agencies who prey on misinformed people. If you don’t want to become a victim, then it is very important to possess some knowledge on it. You need to know about the various legal rights when credit repair comes to act. You can get an error or incomplete or outdated or incorrect information in your report. You must know the formalities of rectifying those errors from the credit agencies and get a revised report. You need to acquire a lot of knowledge on the credit reports and things that has to be done if something goes wrong.
- Clean report: For a rapid credit repair, you need to act accordingly. You need to remove all the negative things completely from the record. You need to convince the agencies for removing the negative things and negotiate the amount with the agencies till you get satisfied.
- Dedication: There is no smooth path to get a good credit because it needs a lot of dedication. There can be several issues like: Agreements can be rejected, the collection agents might turn down the settlement amount offers, and creditors might not accept late payments. These things keep happening but you need to keep trying and never stop yourself from trying things in order to get a better credit.
How to get a credit report?
You can get your credit report for free in a year from the 3 credit agencies: TransUnion, Experian and Equifax. With the help of a credit report, one will be able to know about the credit score too. Initially when you get your credit report, there wouldn’t be any score printed unless you request for it. But thanks to the online calculators because they help you in getting the score based on the values you input. The credit company “Equifax” is the best place to get your report from but it is quite hard. Till last year, only the western states were allowed to get the free Equifax credit report but now even the Americans have the chance to get it and therefore there is a drastic increase in Equifax’s workload. With the help of the credit report, one will be able to see how well a person has performed. In a year, there will be only credit report issued absolutely for free but in case if you need another copy of report, then you need to pay about $3 to $9 based on the location you live. But if you are unemployed or denied a job or on welfare, then you can get another report for free from Equifax.