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Hey, what's up guys? It's Daniel here. Welcome back to the channel.
So today, I'm going to show you how you can easily check your annual credit report for free. But why should you check your credit report? Keeping an eye on your credit history and your credit score can give you a better understanding of your current credit position. It will also give you a good idea of what a potential lender might see if they need to look at your credit history for a mortgage loan or credit card application. And finally, it will also help you see if there are any discrepancies on your credit report that you may be able to fix.
But before we continue, if you find this video helpful, I'd really appreciate it if you hit the like button. Also, if you want to see more videos like this, please consider subscribing, as I post new videos each week about personal finance, investing, and general news.
Okay, so let's get started. So, as I said in the intro to this video, it can be beneficial to keep an eye on your credit report, as it is the basis of how your credit score is calculated. And having a good credit score is extremely important when it comes to applying for a credit card, a mortgage, or even a car loan, as it can affect the loan terms and interest rate that you will pay. By checking your credit report, it may help you decide when is a good time to actually apply for credit because if you have any issues on your credit report, you can actually make some changes to help improve these issues and therefore improve your credit score when you do apply for credit.
So, some things to look for when checking your credit report are to make sure that your personal and credit account information is actually correct and complete. It is possible that your lenders and creditors don't report your payment history accurately, or they may report partial information, which may be viewed negatively. You will also want to make sure that any old information on your report that can be viewed as negative, such as late payments, are removed if they have been there for more than seven years. Even hard inquiries can affect your credit score, so make sure that if there are any on your report that have been there for more than two years, are removed. If there are any inaccuracies, you can actually contact the company that is reporting the information or file a dispute with them. Just by fixing these problems can give you a greater chance of approval for a mortgage and better terms and a lower interest rate.
Another thing to look out for is any fraudulent activity. This could be unauthorized credit checks on your account that you didn't approve. And once again, you would want to contact the company that is reporting it and let them know.
So, you are entitled to a free copy of your credit report every 12 months from each of the three major credit bureaus, which are Experian, Equifax, and TransUnion. The quickest and easiest way to do this is by going to the government-mandated website annualcreditreport.com, which I have left a link to in the description below. And because of the pandemic, annualcreditreport.com is actually allowing you to get free weekly credit reports until April 20th, 2022. Just note that an annual credit report shows you a detailed rundown of your past use of credit, but it does not include your credit score.
So, let's take a look at how to actually use annualcreditreport.com. Now, you want to make sure that you are actually on the correct site, as there are a lot of sites that have a similar name and look the same. So, this is what it looks like. And to check your credit report is pretty straightforward. Just click here where it says "Request Your Free Credit Reports."
And on this next page, you will see that there are three steps. So, you will want to start here on the first step where it says "Fill Out a Form" and click on "Request Your Credit Reports." And on this next page, you will need to fill out all of the relevant information. Once you have filled out all of the information, click next.
And for the second step of the process, you will see here that you can request one, two, or three reports from either TransUnion, Equifax, or Experian. Now, depending on what you might be purchasing in the near future will help you make the decision on whether you get just one report or all three. Basically, if you are making a relatively large purchase, like a new car or a new home, you might want to get all three reports so you can fix any potential mistakes that might be on them as soon as possible. If you are not making any large purchases and just want to have a look at your credit report for personal reasons, then maybe just select one report. Also, make sure to keep a note of each time you request a credit report so you don't lose track of how many you get each year. So, choose which one you want, or choose them all, and then click next.
Okay, on the next page, it may ask for additional information, which you can fill out. Then it will ask to send you a text or phone call to confirm your identity. So, choose which one you want and then click next. Once you've confirmed your identity, click continue.
And on the final page, it will have your credit report, and you can see it here if you scroll down the page. Now, I recommend that you save this information and even print it so that you have it on file. And if you see any incorrect information, you can file a dispute here where it says "Initiate a Dispute."
Okay, so that's pretty much it. And as you can see, it is relatively easy. It does not take too long to complete, and it is totally free. I hope you found this video helpful, and if you have any questions at all, please leave a comment down below, and I will get back to you as soon as possible. And as always, please like, share, and subscribe.
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