An Explanation Of Online Credit Reports Finance Essay - Free Essay Example

Sample details Pages: 4 Words: 1213 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? In the past, credit reports were perhaps more of a problem for customers. But today, with the Internet, online credit reports are easy to obtain and without spending too much of time. The websites that help with the process of obtaining online credit reports should be researched before being chosen. When selecting for an authentic website for credit reports, it is important for customers to opt for reliable websites that provide accurate information. Sometimes payments made or debts that have been cancelled may not be reflected in the credit report and this may negatively affect loans and other financial deals for which the person may have applied. This is also one major reason why a person should have an updated copy of his credit report available. They should make sure that their credit reports reflect their true credit position. It is also important for them to remember that the contents of the credit reports from different agencies may differ. It is essenti al for them to apply to websites that offer the information they need. Credit reports help in noticing any inaccuracies and taking the necessary steps to correct them as early as possible. Credit reports are excellent indicators of whether customer has been a victim of an identity theft. It is advisable to opt for the websites that offer security of personal information provided. If an unauthorized person accesses the information, he could get loans or credit cards with the help of the persons personal details provided. Although identity theft situations are remediable, they take a lot of time and hard work, apart from the additional payments needed for credit repair services. Getting a credit report is essential to help ensure the financial well being of the customers. It can also help fix inaccurate credit data as soon as possible. FAST ONLINE CREDIT REPORTS Some people view credit reports as something they can put off for later. Credit reports were an annoying inconvenie nce in the past, but with the Internet technology today, online credit reports have become a fast and easy affair. A fast online credit report helps prevent financial problems from getting worse. Fast online credit reports give individuals an overview of their financial standing and it helps in rebuilding a poor credit history. Previously, people had to pay to get a copy of their credit report. Today, in most places, people can get a free copy of their credit report, within minutes. All these customers have to log on to the Annual Credit Report, a website made possible with the cooperation of the top three U.S. credit bureaus: Experian, TransUnion, and Equifax and get their credit reports. They can also request for individual credit reports from these three agencies. It is important to remember that the content of the credit reports from these agencies may differ. All the information that is obtained form the online credit reports is very important to determine a persons finan cial position. Many people sometimes do not realize that there are institutions that use the credit reports of customers for reasons that may affect the customers finances. When applying for a mortgage or for a re-mortgage of property, customers need to know that their credit report is one of the things that their creditor will need to consider. This information is also significant when it comes to insurance and loans. At these times, all that counts is creditworthiness. Financial institutions consider credit-worthy customers only. A credit report is one of the main documents that help the financial institutions to decide on providing a loan. Customers should make the effort to ensure that their credit reports are in order. MULTIPLE ONLINE CREDIT REPORTS Today, crimes such as fraud and identity theft have become common. It is very important for people to view their credit reports regularly. This will enable them to take the necessary steps as early as possible to rectify the s ituation and minimize the consequences. To obtain an online credit report is much easier nowadays because of the large number of websites that are offering this service. Customers have the option of obtaining a free copy, every twelve months. These websites provide a credit score. A credit score is a grading system that adds or subtracts points based on selected data in the credit report. Negative factors like late payments and bankruptcies take points away whereas a strong credit history and the careful use of available credit, adds points. There are several reasons why credit scores may vary. Not all financial institutions report to all the three credit bureaus, Experian, TransUnion, and Equifax. A late payment reported by a credit card agency to only one bureau would lower his score on that credit report. Until recently, each credit bureau used its own variant of the standard scoring model and any deviation would end in a different score. The three national bureaus now use the same scoring model. In 2002, researchers conducted a study to examine the reasons for different scores at the three national credit bureaus. Besides different reporting practices by the lending institutions, the study also found that customers sometimes have multiple or mixed credit reports. This was due to the variations in the names used on credit applications and credit files that include information about more than one customer. If any of the bureaus return a report without scoring it or if it is not possible for the bureau to locate a report for the applicant, the information is recorded. ONLINE CREDIT REPORT SITES Recent changes, in the legal system, have helped customers to avail of a free online personal credit report from websites, especially if they have been recently turned down for credit. Checking credit history ensures that the information is accurate. The credit standing of an individual affects the interest rates offered, insurance premiums and even his employment chances. Credit reports are used by a number of companies to make decisions about their customers. Financial institutions classify loan applications based on the credit history. Loans taken for cars, insurance rates and plans to mortgage or re-mortgage may be affected by the credit reports. Potential employers can also evaluate applications of employees, on their credit report. In addition to payment history, credit reports include records of arrest, legal punishments, insurance policies over a certain amount and proof of residence. These details stay on the report permanently, unlike the payment history that drops off after a certain period. There are a number of ways to avail of a credit report. By applying online the reports can be got immediately, free of cost. To receive credit reports online, the person can go directly to the sites of Equifax, Experian, and TransUnion, the three well- known credit-report agencies. He can also request for the credit report t hrough a third party site. These sites offer additional services, like providing the credit rating score. Once the person has received his credit report from the site, it is advisable to check for errors. Credit reports are the most important tools that help in discovering any discrepancies in the credit situation of a person as early as possible and in preventing credit disasters, in the long term. Hence it is vital to check credit reports regularly and make sure that the information they have on record is correct and accurate. Don’t waste time! 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