If you were recently engaged in the process of getting a loan or a mortgage, you must have heard about terms like Equifax.com/FCRA, credit worthiness etc. If you are not already aware of what these terms mean, this article will be helpful for you to understand them in better detail.
FCRA is a federal law that is an abbreviation for Fair Credit Reporting Act. It was established by the federal government to collect financial information about the public in the form of a credit score. These credit ratings are awarded on a scale that runs from 280 to 850, with 280 being the worst possible rating.
Equifax
What do these credit scores mean?
The purpose of these credit scores is to establish your credit worthiness and financial risk to lenders, insurers and even employers. In today's economy, people have a diverse history when it comes to their credit worthiness. Some would have faced tough times and would have filed for bankruptcy while some would have been late on a few payments. There would have also been a lot of people who might have worked really hard to stay ahead of their bills.
When various people like this approach the bank for a loan, the bank will decide whether to give out a loan or not based on the credit worthiness of the person. It is just not approval or denial of a bank loan that is decided by one's credit worthiness.
In some cases, a bank might approve a loan but at a high interest rate for a person with lower credit worthiness than a person with good credit ratings.
You might wonder about how the banks decide on terms such as approval, denial or interest rates. This is where the Equifax.com/FCRA credit report will come into play. Equifax is an institution that will generate a report that will give you your credit score. As said earlier, it will range somewhere in between 280 to 850. The average across the United States is somewhere around the 700 level.
How you can go about getting an Equifax.com/FCRA credit report?
This is a fairly simple process and you can get your credit ratings by simply applying online. All you will need is your own identity information such as name and address. Once you fill out the information, Equifax will be able to calculate your credit ratings.
If your credit ratings are good, you can furnish this document at a bank to get the best possible terms on a loan that you might be trying to get. If your credit score is bad, you can try to fix the issues that might be causing you to have a low credit score.
In some cases, you will also be able to see that there will be some information on your credit report that you are not familiar with at all. If you have ever been victimized by identity theft, there is a good chance that you will see it on your Equifax.com/FCRA credit report in the form of fraudulent transactions or unfamiliar loans. You can then use the report to dispute the charges to get your credit score recalculated. It is advised that every American gets their credit score checked at least once a year to keep abreast of their financial standing.
How an Equifax/FCRA Credit Report Can Help Your Financial Future
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