You need only to turn on the T.V. or do a simple search on Google these days to realize that there are literally thousands of ways and companies that you can obtain free credit report from. These reports, are a lifeline for many as they show every single bit of action your credit history has seen that matters any more and, due to the fact that they are so detailed, can show you easily what you are doing wrong or doing right in the credit world. These credit reports are determined using a variety of factors including, but not limited to payment history, debt ratio, length of credit history, types of credit, and even the number of credit inquiries one has had (there are two types, the one that affects the score is called a “hard” credit inquiry). There are many ways that these reports are determined by the three major credit bureaus but it is most important to know that not all of the bureaus are reported to by everyone. Why is that? It is simply easier for creditors to handle that way. For example, if you apply for a credit card from a company such as Chase bank they may report to only Equifax and Experian, but not TransUnion or it could be the other way around. This is why it is important to have access to reports from all three companies rather than just one. This is why it is important to get information from all three companies, rather than just a single one at a time.

            You, as a citizen of the United States, are entitled by law to three free credit reports (one from each company) a year. You can choose to get all three at the same time or even spread them out over the period of a year. This system not only allows people who are financially unsound to stay on top of their credit, it also warns people that are on top of their credit (or at least those that think they are) if they are doing something that could eventually adversely affect this ever so important factor of our lives. Maintaining a good credit history for most people can mean life or death when trying to purchase something you need, such as a house or even a car, as well as being able to use a credit card in a financial pinch.