Free annual credit reports play a very important role while approving the loan amount. It helps both borrower and lender in many ways while offering loan. Lenders check your credit reports in order to have an overview of your financial standing in the market. On the basis of these reports your application gets approval or might be disapproved. As far as borrower is concern they can scan their reports to know about their credit worthiness. And if they hold the good score then they can get the loan on better terms.
This credit reports are formulated and governed by the credit bureaus under the federal law. The major institution that provides these reports is Equifax, TransUnion and Experian. While preparing your credit reports, they consider all your details like your personal details, current borrowings, defaults and other such records. Each of these credit bureaus will provide you a copy of your credit report on your request once in a year.
Through this reports you can easily organize your finance efficiently. It also helps you keep a check on your credit score. Availing these reports means assessment of your credit condition, which prevents you from bad credit reports. This will also ensure you against identity theft and fraud.
You can easily get the copy of your reports by applying to each of these credit reporting agencies. In order to obtain your annual credit reports, you need to submit your personal details. These details include your name, address, date of birth, social security number, etc.
You can easily access your report through online mode also. It is very important to check your reports regularly to avoid the inaccuracies in your account. This is most convenient and time efficient way as compared to manually applying for credit reports.Free annual credit reports are beneficial for both credit borrowers and credit lenders. These reports help them to understand the credit status of the borrower in the market. (Sophie Wilson)