President's Column: Check Your Credit Report … FREE!

Kimberley Guelker, 2008 LoCAR President

Kimberley Guelker 2008 LoCAR President

Credit today is much more than a plastic card you carry in your wallet. According to the Federal Trade Commission, an amendment to the federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months. All Ohioans are able to access their credit report … free.

A credit report contains information on where you live, how you pay your bills, a list of inquiries made by various financial institutions, information on public record, such as foreclosures or bankruptcies and if you've been arrested or sued.

There are three nationwide consumer-reporting bureaus — Equifax, Experian, and Trans Union. Creditors (such as banks), insurers and certain employers use this information to evaluate your applications. The information contained in your credit report can affect your ability to obtain a loan and also can affect the percentage rate you will receive.

Reviewing your credit report is to your advantage because it will enable you to make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job. Also, by reviewing your credit report on a regular basis can help you guard against identity theft. Identity theft is when someone else uses your personal information (your Social Security number, name, credit card number) to commit fraud like obtaining a loan or open a credit card account in your name.

As stated earlier, you can obtain one free copy from each of the nationwide consumer reporting bureaus every 12 months. You can do so all at the same time or you can order only one or two with a time frame in between.

There is one central website, toll-free telephone number and mailing address where you can order your credit report. Do not contact each consumer reporting bureau individually.

Order your free credit report:

-- online, go to: www.annualcreditreport.com,
-- call toll-free: 877-322-8228
-- or complete the Annual Credit Report Request Form (the form is available at http://www.ftc.gov/bcp/conline/include/requestformfinal.pdf) and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281

You can obtain one free copy from each of the nationwide consumer reporting bureaus every 12 months. You can do so all at the same time or you can order only one or two with a time frame in between. The report does not include your credit score. A credit score is the number that is calculated by the credit reporting bureaus that represents a summary of your creditworthiness. The average price for the credit score, depending on which bureau provides it, is between $4 to $8.

Knowing what's in your credit report before applying for a mortgage loan is to your advantage. A REALTOR® with the Lorain County Association of REALTORS® is just one professional you can look to for help in the home buying process.

The National Association of REALTORS®, "The Voice for Real Estate," is America's largest trade association, representing more than 1.2 million members involved in all aspects of the residential and commercial real estate industries. The Lorain County Association of REALTORS® is one of more than 1,400 local boards and associations of REALTORS® nationwide that comprise the National Association of REALTORS®.

The Lorain County Association of REALTORS® offers a website that provides a complete listing of REALTOR® real estate brokerages in Lorain County, contact information for REALTOR® members, and industry associates. Plus, as a public service, the current open houses by community for the upcoming weekend. If you are a first time homebuyer or a repeat buyer consider www.MyNewCommunity.net or www.LoCAR.org as a good source for Lorain County REALTOR® information.