Free Credit Report

With all of the talk about credit tightening, now is the right time to make sure that your credit is ship-shape and to correct any inaccuracies on your credit report. And who knows - it may save you thousands on your next home loan. So where do you start? Get a free copy of your credit report at AnnualCreditReport.com

This website provides an annual free credit report from each of the three credit bureaus - Equifax, TransUnion, and Experian. During the process, you have to prove who you are and that you’re entitled to receive the information so collect account numbers, social security numbers, etc. to make the process easier.

After you print off the report, check it thoroughly for any inaccuracies and mistakes. Mistakes could include a paid debt that is reported as unpaid, mistaken identity especially if your name is the same as your father’s, “open” credit cards that have been paid off and closed, incorrect social security numbers. When you find a mistake, you can call the credit bureaus to affect the correction but a letter sent certified mail might be the better choice since all the bureaus have automated telephone system and it can be difficult to impossible to get through to a “live” person.

Correcting any mistakes you find on your credit report can increase your FICO score - the score most commonly used by lenders to determine your creditworthiness. And increasing your FICO score can reduce the interest rate you pay on new loans, thus, saving you money on those loans.

Next up - how to increase your FICO score