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Free Credit Reports and Scores can mature to Thousands

By Janet Lacey
Published: Tuesday, December 8th, 2009

The world of credit reporting and scoring is continually bombarded with accusations on inaccuracies and even tampering. Some of it maybe true because up to now 79% of the total credit reports and scores received by millions of people in the USA alone are inaccurate. Most of these inaccurate reports and scores are contested through dispute letters that can even take a long time to fix.

The federal government in the light of freeing the citizenry from the burden of time constraints in the dispute process has mandated a law that would enable individuals from all walks of life to access their most recent scores and reports for free annually. The law was enacted as FCRA or the Fair Credit Reporting Act. This law enabled the people to get free information, while obliging the three credit bureaus to efficiently handle millions of recorded credit activities from millions of Americans.

Some individuals are unaware of this law that gave them the right to be more credit worthy by empowering them to check for the inaccuracies and dispute the inaccuracies before the time they would need their credit report and score. Unfortunately, many individuals are unaware of the advantages that can be benefited from this law. Any individual can gain thousand of dollars from these freely given reports and scores. These dollars would come from an individual’s interest discount on credits that he or she would enjoy if his or her credit report and score are carefully maintained in a high level.

There are three major credit bureaus mandated by the FCRA to give free annual reports and scores. These are Equifax, Experian and TransUnion. The results from these three credit bureaus no matter how inaccurate or accurate they can be will be the sole basis of many financial agencies, that individuals have to engaged with, in measuring how credit worthy is the individual.

The credit worthiness of an individual will be the basis for the monetary compensation due to the risks that the company has to take for insuring, crediting and even lending the individual. Lesser risks will automatically translate to lower costs on interest rates and premium payments. An individual can only know if he or she needs to exert more efforts in appearing more credit worthy through credit reports and scores. The FCRA has lifted the burden from the credit active individuals by giving these major credit worthiness measures for free.

In the finance business, everything is only good as the monetary compensation it can bring in for the company. Maintaining a high scoring FICO and an accurately documented credit report can change the life of its holder in the long run. Nowadays, money lenders like banks and other financing agencies attract good risk individuals by providing incentives and rebates. Individuals with high FICO scores do not have to pay as much as an individual with bad and fair credit score. These monetary rewards if taken and computed as a whole will not just amount to a few dollars of the regular price; it will amount to thousands of dollars which are saved by just doing what is right in handling scores and reports.

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