Credit reporting agencies maintain electronic records of your credit activities. Today, there are three major national credit bureaus: Equifax, Experian and Trans Union. If you are planning on applying for a loan or credit anytime in the near future, it’s a good idea to obtain a copy of your credit report.

For a fee, you can request a copy of your credit report at anytime by contacting one or more of the major credit agencies. Or you can receive a free copy of your credit report through one of the many credit companies available on the Internet. Our favorite source of information on credit reporting agencies on the Web is www.credit-report-credit-score.com

What all this means is that you have to be aware of the state of your finances, and especially know what credit score you have. And just like the banks, you can get this information from a credit reporting agency. You can go through the agency to purchase a copy of your credit report. This is a document that provides details about your credit history and your record of payments, and it basically gives you an idea of how your creditors will see you as a loan applicant.

If you have been denied credit based on information in your credit report (the creditor must provide a reason for denial), you have 60 days from the day you receive a denial notice to receive a free copy of the credit report. Additionally, the law also entitles you to receive a free credit report every 12 months if you are unemployed and seeking work within the next 60 days, are on welfare or if your report is inaccurate as a result of credit fraud.

Alongside of the compiling of reports from creditors, the credit reporting agencies are also responsible for generating your credit score so that potential lenders and creditors can try and determine how much of a credit risk you may be. Your credit score has the potential to change with each positive or negative report that is received and placed into your file… positive reports can improve your score, while negative reports bring it down.