Obtain Free Credit Report
A good friend of mine is a loan officer at a major financial institution. I've been thinking about taking out a loan in order to make some much-needed home improvements, so I asked him for some advice about what I can do to increase my chances for approval.
Besides the usual stuff about having a steady job or a co-signor, he told me that it's very important for me to obtain a free credit report prior to filling out my application. This will give me a much better idea of where I stand because I'll be seeing the exact same information that the bank will see before they make their decision. I have to admit that I'd never considered this angle before, but obviously it would be to my advantage to obtain a free credit report soon.
Since I didn't know the first thing about how to obtain free credit reports, my friend promised to help me through the process. Apparently, there are several companies that can help consumers obtain free credit reports that reflect all the data gathered by Equifax, Experian, and TransUnion. I would just have to supply some personal information such as my full name, current address, or Social Security number. In some instances, I might be asked for a credit card number, my driver's license number, or other details to help verify my identity.
Because the information required to obtain a free credit report is of such a sensitive and confidential nature, I will definitely want to make sure that the company I'm dealing with is completely above-board and trustworthy. That means performing adequate due diligence, like checking the company's rating with the Better Business Bureau and with other consumers to see if any red flags pop up.
My banker friend says that it's actually a good idea to obtain a free credit report once a year, regardless of whether I'm applying for a loan or not. Doing so is an excellent way to ensure that the information contained in my reports is accurate and up-to-date, and is also the best way to determine if any instances of identity theft have occurred.
Anyway, now that I know how to obtain a free credit report, I'm going to send off for one this weekend. I never realized how critical it is to know about my different ratings and scores, but from now on, you can bet I'll stay on top of these things!
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