By law, every single U.S. citizen with a credit history is allowed one free credit report each year, or every twelve months. However, what may not be quite so apparent is the fact that obtaining your credit score is not free. This article will attempt to differentiate between a credit report and a credit score.
A credit report is, simply put, just a report on what your credit history holds. It will contain the persons name, street address, Social Security number, home and possibly work phone numbers and date of birth. If the requester is married, the report may also hold their spouses name. The mothers maiden name may also be included.
Other information contained in the report will be credit background history which can consist of the identity and Identification number connected with each and every subscriber (financial service provider) who produces a record on a persons credit/debt reimbursement background.
It likewise will reveal credit score requests made by subscribers. These are established when a service provider performs a credit history review for an individual. It is at this time that a report on the document request is created. It is going to stay in the document in the majority of states for 1 or possibly 2 years. This is certainly of concern to loan companies since the item discloses current credit history actions.
Open public records consisting of courthouse files, bankruptcies, judgments, law suits and criminal arrest information will also be included.
While all these items are on an individuals free credit report, what people do not know is that they must pay for their credit score.
A persons score is calculated through a complex formula that brings all of the previous information together along with other factors to give a numerical indication as to the individuals credit worthiness, or likelihood to payback loans in a timely manner.
This is the number we all must pay for.