Why Are Credit Card Companies Offering Consumers Access To Free Credit Reports

Checking your score is very important because it can assist you identify errors and make corrections in the report. Not checking your credit report files could lead to major rejection. If you have a right to see your credit files for free, then you should make a point of doing so. There may be an error that reflects in the report, and it could greatly impact your ability to be issued with a loan. Checking every detail in the file can help you unearth some things that could remain unidentified for some time.

The earlier you make the corrections the better because you are able to prevent some bottlenecks. People have been rejected for loans because there seems to be an unused but uncancelled mobile contract address, which has not been updated after one, moved from a previous home to a current one. You have to be vigilant in everything you do on your credit file.

In addition, you also need to check for products that are not yours cause of the ID fraud issues. Before you make any big applications like the mortgage, car loans, home equity loans, or such kind of credit facilities, it is essential you check the credit files in order to minimize the risk of rejection. According to Ted Sarenski, a certified public accountant as well as financial planner, he says that it is fantastic to have card issuers providing free credit report for consumers.

Other websites like CreditKarma, CreditSesame, and Credit.com have all along been offering access to free credit scores for many years. By getting on board and offering credit file access to consumers, the credit card issuers are able to reach and influence the way in which consumers interact with their credit files. Card issuers like Barclaycard US, Discover, and First Bankcard have already signed up to help allow more than 35 million cardholders to be able to check their FICO scores in each month and without a cost.

Besides the card companies, it is expected that more lenders will follow similar footsteps and allow consumers to access their credit files for free. One main reason why card issuers are offering the free access to credit file is to allow consumers to be able to check their report and establish issues that are affecting their borrowing and other aspects that are impacted upon by the score. While consumers may want to know their score, on the other hand, they have to focus more on the report.

The score is just a figure while the credit report offers a more detailed analysis of the score and it will show the companies that have extended credit to you, the kind of loans, which are outstanding, as well as the payment history. It is the report where you can also see some errors and correct them in advance before they negatively impact your borrowing status.

If the credit scores are readily available, they could help consumers to better spot mistakes or other problems within their credit report and be able to act appropriately. Federal regulators have hinted that fewer than one in every five Americans actually do perform a check on their credit in a year. And, without regularly reviewing the score and the report, it would be easy for consumers to fail to notice the errors in the credit file data or even identity theft that could have occurred in their cards.