Get Your Credit Report Periodically

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Get Your Credit Report Periodically

If you are denied credit or employment based on information contained within a credit report, you are entitled to a free report of the credit report that was used to make the determination of your denial if you request this report within sixty days of the denial. Additionally, you can request a free credit report once every 12 months from each of the three credit bureaus at annualcreditreport.com. You should request a report from all three credit bureaus, as they may contain different information about you. Equifax offers a combined report from all three agencies—and consumers can also request a copy of their FICO® score for nominal fees.

Your credit profile matters

Using information from your credit history, creditors use a mathematical credit scoring model that computes the probability of your being a good credit risk. This is a financial profile used to compare you to others of the same profile to determine how much of a credit risk you pose. If your risk profile shows that you are a high risk, you may be denied credit. You may also be denied credit if you have no profile. Some advisors recommend that young adults establish a credit history by making credit card purchases and paying them immediately to generate a favorable credit record.

Credit is an important financial tool that allows consumers to acquire goods and services they need immediately, although they may not have the cash available. It should not be used to make impulse purchases, since the interest and finance charges greatly increase the cost of those purchases. Irresponsible use of credit could lead to financial hardship and may result in bankruptcy.