Why Use A Three In One Credit Report

When it comes to improving your credit worthiness having a three in one credit report is a better than having just one. The reason for this is simple. Not all 3 credit reports tell the same story.  

What Is A Three In One Credit Report

Currently there are three credit reporting agencies that compile their own report and even though the aim of each report is the same the structure, details and length may differ. Therefore, it is advisable that you obtain and compare each credit file to get a true picture of your financial health.

As its name suggests a 3-in-1 credit report is basically one report that contains each of the reports produced by the three credit collection bureaus who are Equifax, Experian and Transunion. In this way you can see at a glance what each bureau is saying about how you run your finances.

These reports are very important documents because banks, lending institutions, credit card suppliers, insurance companies, landlords and even employers can check your report to find out how much of a credit risk you are.

For example,when you apply for a home loan are credit card the provider will check your report to determine if you have the potential to pay back the money you are wanting to borrow.

Why Are There Three Types Of Credit Reports

Many people ask why each of the 3 credit reports are different when each bureau is basically collecting the same financial data. As pointed out earlier Equifax, Experian and Transunion will have different financial information about you.

The main reason for this is that the bureaus collect your financial details from your creditors not the other way around. Some creditors will allow the collection bureaus access to your financial data while other creditors will only allow one bureau.

This is because by law creditors are only required to provide financial data to one agency. Supplying to all three is voluntarily.

Therefore, you will have a situation where some creditors are supplying data to all three bureaus and other creditors supplying to just one or two bureaus. This means there is a strong possibility that each of your reports may contain different information.

In this situation only checking one report may mean that you will not be able to compare any differences or potential problems with your credit accounts and payment history. With a three in one credit report you will see the whole picture.

When a bank receives an application for a loan they may look at more that one report. If you only have one of the reports you will be completely unaware of any credit report errors that may show up in the other versions. It is these errors that could potentially jeopardize your chances of securing a loan.

If you are applying for a loan whether it be for a mortgage or credit card then check each report beforehand for any potential problems.

How To Get Your Three In One Credit Report

The three major credit bureaus have made a lot of money charging lenders to have access to their data. As consumers appetite for credit continues to grow selling this data to us is also becoming big business. If you do a search for credit reports you will find a multitude of websites offering their three in one credit report services.

Each collection bureau offers a 3 in 1 credit score report service however, these are not free as you usually have to sign up to their credit monitoring services to get a copy of each report. The monitoring service is a monthly subscription and this varies between the 3 bureaus.

The benefit of their monitoring service is that the bureau will up date you of any changes to your reports during the year. This service is not necessary, however if you are planning on applying for a mortgage and you need to rebuild your credit score then, you may want to consider this as long as you can afford it.

The demand for financial data has also resulted in a huge number of 3rd party on line sites that provide the three reports. There is a fee for this but these are generally lower compared to the major bureaus.

There are a number of these websites that offer a free trial to their monthly credit monitoring membership. What you can do is sign up for the free trial, download your reports and then cancel your monthly membership. In this way you can receive your report for free.

The official way to get your free credit reports is to log on to the FTC site www.annualcreditreports.com. This Government site enables you to download each report from all 3 agencies without paying a fee.

Avoiding Credit Report Scams and Frauds

Unfortunately, the credit repair industry has a reputation for scam and fraud artists that rip off people who are in a vulnerable situation. Many of these services can charge you extortionate fees for services that are either worthless or you can get free elsewhere.

The best way to avoid these scams is to use your own common sense and due diligence. If a site requests your personal and credit card details ask yourself if you trust this site. If your gut instincts says no then move on.

There have been many negative reports where people have signed up to free trials and canceled them but still got billed a monthly fee. Therefore,  make sure you find out how to cancel the membership if you decide you do not need the service. If they have a customer care phone number ring them up and test their customer service.

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