[Chron] Texans Can Get Free Credit Reports

I was going to post this. I tried it yesterday. All three companies said they couldn't give me any info online (no real reason given) and that I would have to do it by mail.

 

As a reminder, however, everytime you (or any company) check your credit it raises a flag. When you are applying for loans, one of the things checked is credit inquiries.

While it is certainly an excellent idea to check your credit, don't do it too often.

 

CORRECTAMUNDO. Only check your credit if you absolutely positively [basically] need it. Never "just because". I don't know about a flag (is that PANCHO's Mexican Buffet?)... maybe a point?

 

That makes no sense. They are the ones checking it. God I hate this crap.

You only get one free check a year from each company I think.

 

I believe it only counts against you if you are applying for credit and they run a credit report. If you go through the credit agencies like Equifax if doesnt count against you. I got my free report yesterday. I'm sad now

 

Any pull in numbers from your report lowers your score even if you are doing it your self via one of the sites.. also, the real link to get the free stuff is

https://www.annualcreditreport.com/cra/index.jsp

I wouldnt pull it from here any way... it wont tell you your score, only a history about your report.. it cost money to get the score..

 

This isn't true. You checking your credit score just to see what it is doesn't affect it. Check it 50 times a year if you want. I check mine every 6 months or so. You can also use something like IdentityGuard to monitor your credit and alert you of any changes.

 

Again, untrue. There are several instances when your credit score will not be affected by an inquiry into your credit. Among those instances is when you check your personal report.

From Experian's website :

Q: Do inquiries affect a credit score?

A: Careful study has shown that inquiries are an indicator of credit risk. Recent inquiries indicate a person may have outstanding accounts that are not yet part of the credit report. The more inquiries that appear on a borrower's credit file, the more likely a borrower may not be able to pay his or her bills as agreed. However, inquiries have a relatively small impact on your credit score. In a credit scoring model, there are other, stronger indicators of future payment performance, such as past payment history and use of credit. These indicators can offset an inquiry. Inquiries are rarely, if ever, the only reason for poor credit scores or being declined. They only become significant if there are other issues, such as late payments or very high debt as compared to income you include on your credit application.


Q: Does every inquiry affect a credit score?

A: Credit scores only consider inquiries initiated by the consumer. These include mortgage applications, credit card applications and auto loan applications. Inquiries that don't affect scores include: requests by you to the consumer reporting agency for your personal report, lenders using credit information for account review purposes, lenders using credit information for "preapproved" credit offers, or inquiries for use in making employment decisions. Inquiries that don't impact risk scores are shown only on the credit report you request directly from Experian.

 

My wife has seen it in the mortgage business. It generally isn't too big of a deal because it can be "explained" away.

 

An investor that I know at American Express tells me the samething... From what he and others that deal with this crap all the time say the same thing "looking at your own credit report lowers the score.."

 

Then that means Experian is lying... lol. And... I don't think they are.

Tell your friend at American Express to read this CNN article. It's one of the 8 myths listed :

http://money.cnn.com/2005/03/16/pf/debt/creditscore/

Or how about this from TransUnion?

http://www.transunion.com/content/page.jsp?id=/personalsolutions/general/data/CreditScoreFAQ.xml :

How do inquiries impact a credit score?
An inquiry is recorded on your credit report every time you, one of your creditors, or a potential creditor obtains a copy of your credit report. A common misperception is that every inquiry decreases your credit score a certain number of points. This is not true. Typically, the presence of inquiries on your credit report has only a small impact on your credit score, while certain types of inquires have absolutely no impact on your credit score. Inquiries have less importance than delinquencies, balances owed, and the length of time you have used credit. Inquiries are usually more important on your credit score if you have a limited credit history.

Oooooorrr... how about a link to the company that created the FICO score calculations we're talking about? Fair Isaac :

http://www.myfico.com/CreditEducation/CreditInquiries.aspx?fire=5

Inquiries that don’t count toward your FICO score.
Your own credit report requests, credit checks made by businesses to offer you goods or services, or inquiries made by businesses with whom you already have a credit account do not count toward your FICO score. Credit checks by prospective employers also do not count. These types of inquiries may appear on your credit report, but they are not included in your FICO score.


So your friend misunderstood you or you misunderstood your friend. People need to be educated so the misconceptions, myths, and misinformation can stop. Identity thieves rely on stuff like that.

Check your credit reports at least once a year if not every 6 months. It's a good thing.

 

I just talked to him and said if you pull from another company other than the big three it can be considered a hard pull and lower the score of the report.. he said that soft pulls will not hurt your score, good call Dunk...

 

There are two types of inquiries:

Consentual inquirey by a third party (loans, CC apps, basically anything that requires a credit check). If your shopping for mortgages with multiple banks, it only counts as one. These do lower your score but fall off quickly ... 6 months or so

Self or inconsentual inquires: You credit can be checked w/out your consent but it does not affect your score. The same thing with a self inquirey. These are kept track