Get a Copy of Your Credit Report

Most people have a pretty good idea of their credit standing and whether or not they have good or, credit issues. But the only way to really find out about your credit is to get your hands on your credit report. This will enable you to see the same information a lender will.

Many privacy or fraud protection services offer ways for you to get a copy of your report online. For a small fee, you can enroll in a program with a company who will monitor your year-to-date credit activity.

If anything suspicious comes up, you’ll be notified of the possible breach. In exchange for subscribing to the service, you’ll typically be offered a copy of your credit report for no additional charge. However, if credit monitoring and fraud protection, while certainly important, aren’t really part of your home buying plan, there is a free alternative. The website www.annualcreditreport.com is sponsored by the three main credit repositories: Equifax, Experian and TransUnion. These three credit bureaus hold the credit information for almost every consumer credit transaction in the U.S. Each year, you can access the website, answer a few questions and get a copy of the same report that displays the same information a mortgage lender will review.

There are two main reasons to get a copy of your report before you shop for a home. The first is to find out if there is any fraudulent activity on your report. Is there a credit card listed that you didn’t know about? Identity theft is becoming more and more common. In fact, according to the U.S. Department of Justice, 7% of U.S. households reported some type of identity fraud. It is entirely possible that someone has used your identity to open up credit accounts under your name without your knowledge. In fact, identity theft is so rampant these days that even if you’re not looking to buy a home, you should regularly review your credit report.

The second reason to get a copy of your report is to check it for any errors. For example, say you paid off your car several months ago but the balance is not only shown as outstanding on your report, but that payment is also months past due. You know that’s an obvious error as the car is paid off and you have a copy of the title stating so. Or, maybe there’s a late payment on a credit card, but you know the late payment report is false because you’ve set up auto-payment on that card each month. Getting your hands on your credit report will help you catch and correct these mistakes.

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