Current legislation provides an allowance for each of  the three main credit reporting agencies to provide (upon request) copies of your credit report every year, at zero cost to the you the consumer.

In order for you to receive a free copy every year, you will need to complete and submit a new request every 12 months.

You can request a free copy of your credit report on any of the following ways;

1. Online from the AnnualCreditReport.com website. This is the only authorised website on the Internet where you can request a free copy.

2.You can print out a copy of the “Annual Credit Report Request brochure” (available from the Federal Trade Commission) and complete the form on the back. Once completed, forms have to be posted to P.O. Box 105281, Atlanta, GA 30348-5281.

3.  Lastly, you can call 1-877-8228 for additional information on requesting a free copy of your credit report.

It should be noted that using the above options will provide you with a free copy of your credit report (that is all the financial information known to institutions), however it doesn’t give you your credit score  (also know as a FICO score). That being said your credit score is entirely dependent on many items contained within your credit report. Your credit report is mostly just a summary of your credit accounts, payment history, outstanding balances, as well as your payment history.

It is imperative that your credit report be 100% accurate. Once you receive your copy, go through it thoroughly and check for any discrepancies. If you find anything that doesn’t look right, ensure you bring it to the attention of the relevant agencies. Remember that financial institutions will base their decision on whether or not to give you a loan or line of credit almost entirely on the details within your credit report. They will not know if it contains invalid information, and will take your report at face value.

Again, if they are using a credit score to make make their decision, this score is again tied directly to the information in your credit report.

It is absolutely worthwhile to request a copy each year and make the habit of reviewing the information by hand. If you feel this may be too difficult for you, there will be a myriad of companies that would be happy to assist you with reviewing and correcting any mistakes for a fee. Again, Google should bring up a ton of results if you search for “fix credit report”. You may also see links on this page for services offering to help fix your credit report and/or improve your credit score.

The credit report is the backbone of your credit rating. Here you’ll basically find an entire history of your credit profile. Basic things like your name and current address, as well as any previous addresses that may be on file. You’ll also see a listing of all debt accounts you’ll have, such as bank accounts and credit cards. Things like mortgages, student loans, and bank loans will also be listed.

Account information is fairly specific, and includes the lender, your current balance, and total credit limit. You’ll also find payment histories that generally last at least 72 months. That means any late payments and delinquent accounts will be clearly noted. Finally, if you have any bankruptcies or offers in compromise on your record, this will also be in your credit report.

If you’ve never seen your credit report before, know that you are legally obligated to receive your credit report once a year from each of the three credit reporting agencies. You do NOT have to pay for this! This is your right as an American consumer – there are many companies out there who will try to charge you for this free service. All you need to do is request your report from each agency – most will have forms that you can fill out online to get your credit report immediately.

Credit reports aren’t perfect – they’ll often contain errors such as incorrect addresses, old accounts, balances that have been paid off, etc. If you notice an error on your credit report, contact the agency that issued the report. They’ll follow up with the creditor and see if the information is legit.

Having an excellent credit report will tell potential lenders that are you fiscally responsible. But increasingly, credit reports aren’t just being accessed by potential lenders. Even potential employers are starting to pull credit reports before employing an individual. If a person can’t be responsible with something as important as their own finances, how good could they possibly be at work? This is why you need to maintain a good credit report – you never know who’s looking.

Before you can fix any errors on your credit report, you need to obtain a copy of it first. Lucky for you, the government has made it possible for you to obtain free copies of your credit report from the three main credit reporting agencies (Equifax, TransUnion, and Experian). Simply go to AnnualCreditReport.com and request your report from each agency. You can only request one copy every 12 months, but it sure beats paying $10 for each report. There are tons of third party agencies out there offering varying credit monitoring packages, credit scores, and access to your credit reports, however by accessing AnnualCreditReport.com (and only that site) you skip the middleman and go straight to the source.

If you notice errors on your credit report, you should make it a priority to fix them. Luckily, there are strict regulations in place that the credit bureaus must comply with to correct credit reports. Errors on your credit report must be removed or corrected by the credit agency. Usually, they need to comply within 30 days of written notice. The onus is on the credit bureau to have accurate information, however if you have proof that the information on the credit report is wrong that can greatly speed up the process. Also, the credit reporting agency is not allowed to report outdated information. Outdate information includes things like credit card accounts that were bought out years ago.

It is advised that you go to the credit agency directly for information on how to fix errors on your credit report. Go to the agency whose report contains the error in question – for example, if there are errors on your TransUnion report contact TransUnion for a solution. Equifax has an online complaint form where you can submit inquiries; turnaround time for initial reply is about 24-48 hours. For additional information, consumers are encouraged to contact the federal trade commission, or go to their webpage. They have a publication conveniently titled “A Summary of Your Rights Under the Fair Credit Reporting Act” that is invaluable to those in need of credit repair.

Unfortunately, fixing errors on your credit report is usually a reactionary process. Most consumers don’t realize that there are mistakes on their credit report until they are denied credit. Getting a copy of your credit report before applying for a loan can save you a ton of headaches later on.

Having bad credit can be detrimental to your financial health. Interest rates are directly tied to your credit score; for existing credit cards, having a bad credit score might mean that the credit card issuer will raise your interest rates. Many consumers are reporting that their credit card companies are increasing their rates upwards of 30% or more! If you’re merely applying for credit, terrible credit means you won’t be approved for any new credit at all! If somehow the stars align and they do approve your application, expect rates and offers that are significantly worse than an applicant with excellent credit

If you have terrible credit, it’s time to start taking matters into your own hands and repair your bad credit history. The first step to repairing your credit is to obtain your credit score and credit report. To obtain your credit report, simply go to AnnualCreditReport.com. From this site, you will be able to obtain your 100% free credit report directly from Equifax, TransUnion, and Experian. Note that you can only request 1 report every 12 months. To get your FICO score, go to MyFICO.com. Here you can get your 100% authentic FICO score and know exactly where you stand.

The first thing to look for is inaccuracies in your credit report. Errors can include things like old and outdated credit cards, credit cards that have been bought out by other companies, accounts that are not yours, or other inaccurate information. If you find information in your credit report that needs to be fixed, contact the agency with the erroneous information to resolve the problem. Fixing inaccuracies is the fastest way to bring up your credit score.

The next (and most obvious) way to better your credit score is to pay off your debt. It’s true that not all debt is created equal = student loan debt is better than mortgage debt, which is in turn better than credit card debt. As such, pay off your credit cards first, then your mortgage/student loans. One criteria that creditors look for is the ratio of debt to available credit. Bringing down your debt obviously improves your debt ratio. Finally, make sure that you are current on your credit accounts, and maintain your balances at reasonable levels. Showing creditors that you can manage your money will severely improve your credit score.

No matter what anyone tells you, repairing your credit is not an overnight process. It takes time, patience, and dedication to repair one’s credit. As long as you continue to make fiscally responsible decisions, repairing your credit is a snap. All it takes is the motivation to get the ball rolling.

A terrible credit rating can cause you to become a white elephant to creditors and lenders. If you’re looking to borrow, the odds of you even being considered for a loan are slim to none. If by chance the lender does extend you credit, rates will often be at obscene rates. For instance, a mortgage loan for a person with excellent credit might be something like 5.25% for 25 years. That same loan for a person with poor credit can carry a rate of 7.25% or more! Over the course of 25 years and several hundred thousand dollars, that can amount to tens of thousands of dollars of additional interest. Credit cards are no different. A person with excellent credit can hold rates of under 5%, whereas cardholders with terrible credit can be charged interest in excess of 30%!

Consumers shouldn’t feel helpless, however. By obtaining a copy of your credit report and score, you can see the same information that potential lenders will see. Thus, you can repair any inaccuracies that may be present, or look for areas in which you can improve your credit score. But just how do you obtain your credit score?

There are several places out there where the consumer can get their credit score, but before we get onto that information you should know that there are two types of scores: FICO scores, and FAKO scores (as they are known. FICO scores are trademarked by the Fair Isaac corporation, and are a result of patented algorithms that are a direct result of information provided to them by the major credit reporting agencies. If your score does not come from the Fair Isaac corporation, it’s a FAKO score.

FAKO scores can be provided by just about anyone. Don’t think that only less-than-reputable companies provide FAKO scores, the score that you receive from any third-party credit reporting service is a FAKO score. These hold no real weight amongst lenders, but rather are supposed to give you an idea of where you stand. If you are serious about your credit, you should only be looking at your FICO score.

However, getting a copy of your FICO score shouldn’t cost you an arm and a leg. Here are several ways of getting free or low cost FICO scores.

1. Washington Mutual ESPN Credit Card – Washington Mutual bank cards currently offer free scores for cardholders from the TransUnion credit reporting agency. Scores are automatically updated every month and displayed online. The card also offers a 0% APR on both balance transfers and purchases, as well as no balance transfer fee – a great deal. This is not a real FICO score and should only be used to estimate where you are, and will vary slightly from your real FICO score.

2. MyFICO Score Watch – MyFico is a genuine Fair Isaac company, so the FICO scores you receive here are the free thing. Sign up for the free trial and you can get your credit score free for 30 days. Just remember to cancel at the end of the trial period. If you don’t, it’s going to be an $89.85 lesson!

3. Equifax Credit Watch Gold – Once again, no legit FICO score here. You’ll only get the FICO score from Equifax. However, you will get your credit report from all three agencies, as well as unlimited access to Equifax reports. Like the MyFICO Score Watch, remember to cancel at the end of the trial period.

4. TransUnion CS 3-in-1 Credit Report – Exactly like Equifax Credit Watch Gold, except for TransUnion reports. The Equifax service is a bit cheaper though.

5. MyFICO – There are several other options for obtaining your legitimate MyFICO credit score from MyFICO.com. The options vary in price, but you should expect to pay a small fee for each credit report and another fee to obtain your credit score, should you choose to go the a-la-carte route. You can pick up your report from all three agencies as well as your credit score for $49.95, or you can subscribe to the monthly service above.

It’s not all roses in the credit reporting world. There are several companies out there who are only out there to get your hard earned dollar, so avoid them at all costs. Here’s the short list:

1. FreeCreditReport.Com – Ever wonder how they can afford to have so many god-awful ads that seem to play all the time? Well it’s obviously not by providing free credit reports! The way the site works is it forces you to sign up for lengthy (and expensive) trials and subscriptions to other sites, and then gives you your free credit report. Of course, you can already obtain your credit report for free, so why sign up for the crap? Avoid at all costs!

2. Any one of the three credit bureaus – You will never get a true FICO score here, so why pay for them? Use them for free or low cost trials only, and to request your free credit reports.

Getting a hold of your credit score is the fastest way to improve your financial standing. The entire system was designed to protect consumers, so it logic would dictate that it shouldn’t be that expensive to obtain your credit score, and it isn’t. You just need to know where to look.

The credit report is the backbone of your credit rating. In the credit report, you’ll find basic information like what address they currently have for you, as well as any previous addresses that you have used. You’ll also find a listing of any bank accounts, credit cards, and large loans (with their corresponding balances and limits). Further, the credit report will say how many on time payments you have, any late payments, delinquencies, bankruptcies, and the like. Finally, it will also tell you how many times your credit report has been accessed, whether by a “hard pull” or a “soft pull”. Soft pulls can be any general inquiry to your credit. For instance, you pulling up your own credit report will count as a “soft pull”. However, a mortgage lender doing a detailed review will generally call for a “hard pull”.

Credit reports are handled by three independent credit reporting agencies: Experian, Equifax, and Transunion. Each credit reporting agency will have their own rules and guidelines and maintain their own records. If you find errors on your credit report, you’ll have to take it up with the agency that issued the report. While your credit report will generally be the same amongst the three agencies, due to timing differences they are not the same. Each agency will also issue it’s own credit score.

The credit score is a by-product of your credit report. Your score is based on several factors included in your credit report, for instance the ratio of debt to available credit. Any late payments, bankruptcies, or the like will negatively impact your credit score. Things like long credit histories and low debt will in turn help your credit score. Each agency issues you a credit score, but if you’re looking for your FICO score you still don’t have it yet.

FICO is trademarked by the Fair Isaac corporation. The FICO score is a combination of all three of your credit scores from each of the agencies. How the FICO score is actually calculated, your guess is as good as mine. This is an important distinction though – if any company other than Fair Isaac promises you a credit score, it’s not the real thing. This is commonly referred to as the FAKO score. While FAKO scores are generally cheaper than FICO scores, they will merely give you an estimation of your FICO score. Lenders will usually only look at the FICO score.

Good credit is important for many reasons. If you’re looking to buy a house, get a car loan, or even find employment, a good credit score can only help you. Now that you know the difference between a credit score and a credit report, you’re well on your way to getting a great credit score.

Lenders are the biggest proponent of credit scores. Your three digit credit score can determine many things: whether you get denied or accepted for a loan, your applicable interest rates, terms, down payment requirements, and special offers. A bad credit score might disqualify you from meeting minimum eligibility requirements, common when applying for 0% car loans. A good credit score might qualify you for the best payment terms and lowest interest rates, since creditors view you as not likely to default. Unfortunately, that’s the way it works in the real world: those that can afford it get charged the lowest rates, and those that can’t afford it get gouged.

However, if your credit score is terrible you are not helpless. You have the power to repair your credit rating, you just need some direction. The first thing you need to do is get a copy of your credit report. While you can pay for your credit report from several third party agencies, by law the three main credit reporting bureaus (Experian, TransUnion, Equifax) are required to provide to you one copy of your credit report every twelve months. Simply go to AnnualCreditReport.com for more information. Now, after you receive your credit reports, follow these steps to begin the rebuilding process:

1. Look over your reports for inaccurate information

First off, check for inaccurate information. Your credit card might list accounts that are not yours, accounts that you’ve long paid off, or old balances from companies who have been taken over by larger companies. You should definitely not be penalized for mistakes caused by the credit reporting agency, and you may (or may not) be surprised to know just how often mistakes can occur. Look over your report for inaccuracies first, and if they are move on to the next step.

2. First, pay off past-due accounts

The biggest red-flag on your credit cards is past due accounts. To would-be lenders and creditors, this immediately lets them know that the person is not capable of managing all their finances. Your first step should be attacking these past-due accounts and bringing them current. If you need to, you can attempt to settle with the creditor for a lower amount than you owe, however settling does negatively impact your credit score so you should keep that in mind.

3. Don’t be over your credit limit

The next red-flag is credit cards that are over the credit limit. If you have any credit cards over their credit limit, pay down the balance until it is below the credit limit. The ratio of debt to available credit is one of the factors that impact your credit score, so being over the limit will severely damage your score. Attack your balance aggressively to improve your ratio.

4. Get new credit

No creditor wants to be the first to issue a troubled borrower new credit. One of your first goals after paying down your balances and any past-due accounts should be establishing new credit. This doesn’t mean that you need to go out and apply for a car loan. Getting new credit could be as simple as getting another cell phone line. However, if your credit rating is severely damaged, you might need to look into getting a “credit repair” credit card. These are so named because you aren’t actually supposed to use them. They carry interest rates upwards of 30-40%, however they’ll issue credit to just about anyone. Lines will be low, most likely below $500, but hey credit is credit.

If you have taken all these steps, you should just continue to pay down your credit card debt and wait. Your credit score is not something that can be repaired overnight, and an excellent credit rating can take several years to build. Repairing your credit isn’t impossible – it just takes a game plan, some dedication, and time. Follow these instructions and you’ll be well on your way to repairing your credit.

Do you pay more than the minimum payment on each card each month, hoping it will eventually add up to enough and you’ll be out of debt?  This method will work, but it will take a long time.

The information in this article can help you get out of credit card debt much faster than the two options listed above.

1.  The first thing you need to do is resolve not to use the credit cards you have.  This is a hard thing to do, but if you ever want to get out of debt, you have to be disciplined.  The discipline starts with not using the cards.  Put them in your safe or filing cabinet at home and don’t carry them with you.
2.  Call all your credit card companies and ask them if you can get your interest rate lowered.  A lot of credit card companies have options for lowering your interest rate, you just have to ask.  If they tell you they cannot lower your interest rate, that’s okay.  You can still follow this plan, but it doesn’t hurt to ask!
3.  Work out your budget.  Set a monthly amount that you will dedicate to paying on your credit cards.  It needs to be about $50 to $100 dollars more than the total of all the minimum payments due on your cards.  For example, if you have 5 credit cards and each card has a minimum monthly payment due of $35, the total of all these minimum payments is $175, so you would need to budget at least $225 to $375 per month.
4.  Start with the card that has the lowest balance on it.  If there are some cards that have the same balance, pick the one with the highest interest rate.  This is the card you will pay off first.
5. Pay the minimum payments due on all your credit cards, except the one you have chosen to pay off first.  On your chosen credit card, you pay the minimum plus the extra amount ($50 to $100) you have budgeted.   If you can’t afford the extra $50 or $100 each month, pay any extra you can.  Even an $20 extra will help. Keep in mind that the more you pay, the quicker that balance will be paid off.  Ideally, you should see if you can find ways to save money each month in order to pay more on your chosen credit card each month.  Use coupons, take your lunch to work, walk to work or take public transportation, anything you can do to reduce expenses will certainly help.
6.  When the first credit card you chose is paid off, close the account with the lender.  You don’t need it any more and you don’t want to use it.  Make sure you shred it, cut it into pieces, or return it to the lender if required.  Some banks will shred cards for you for free if you have an account with them. Under no circumstances should you throw away the card intact, make sure you shred or cut the card up before discarding it.
7. Congratulations, you now have one less credit card account.  Out of the credit cards that are left, again choose the one that has the smallest balance.  Having one less card, you now have more money to apply to the remaining cards.  In the example above, if you had budgeted $225 dollars to go towards your credit card debt each month, you still have $225 to apply toward your credit card debt, but now you have one less card.  Now you have 4 credit cards with a $35 minimum payment each, or a minimum monthly payment total of $140. You have budgeted $225, so that leaves you $85 extra dollars each month to apply to one of your credit card accounts.  This card will be paid off much faster than the last one because you are going to be paying more off it every month.
8.  Continue paying off one card at a time and using the extra money to apply to the next card until all cards are paid off.  Make sure to close each account after it has been paid off so you are not tempted to use the cards again.

Getting rid of your credit card debt is not easy and depending on how many cards you have and how big the balances are, this could take a few years or more to clear it all up entirely.  If you stick to this program, don’t use the cards to buy anything, and close the accounts when they’re paid off, you will be relieved of your credit card debt before you know it.