Nocita Carter's Blog

Should I Have My Credit Frozen?

This is better known as having a security freeze on your credit report to assist in detouring and hopefully eliminating individuals from using your credit information without your permission or knowledge.  A security freeze can also assist in the prevention of identity theft. 

The cost of having a security freeze placed on your credit report is minimal compared to the overall identity theft protection products that are currently available to the consumer.  In many instances you may be paying as much as $15 per month for identity theft protection that may not be effective in preventing your identity from being stolen.

The cost of placing a security freeze on your credit report with each credit bureau is approximately $10 if you are under the age 65.    If you are age 65 or older, the cost of placing a security freeze on your credit report with each credit bureau is approximately $5.  The overall cost to have a security freeze placed on your credit report file would depend on the laws of the state where you reside.

In many states, if you are a victim of identity theft there is no cost to place a security freeze on your credit report file with each credit bureau. A security freeze to protect your credit file is available to all consumers in the United States and U.S. territories. 

You may be wondering, how do I add a security freeze to my credit reports? Well, you can start by contacting each of the following credit bureaus directly to start the process:  TransUnion, Equifax, and Experian. 

So, having a security freeze on your credit report file may be something you may want to consider.  By having a security freeze with each credit bureau, this may aid you in protecting yourself against identity theft.  In addition, if you have already been a victim of identity theft, freezing your credit report file, may help eliminate further problems with your credit information. You may want to visit the following websites for each of the credit bureaus to get started with obtaining your security freeze for each of your credit reports: 

TransUnion

Equifax

Experian

Looking To Get A Lower Interest Rate or Approval For A Home Loan?

So, you have submitted your loan application for a home or perhaps you’re trying to refinance your current mortgage to a lower interest rate when you’re suddenly told by your prospective lender that you are not approved for your loan or you are approved for the home loan but your interest rate will be astronomically high because of your credit report and score.  You may be in shock or disbelief about this news you just received from the lender because you thought your credit was in good standing and you would be able to qualify for a home loan and secure a lower interest rate.

You are probably wondering how you can go about trying to get a lower interest rate for your home loan or approval for a loan, you may want to consider using rapid rescoring.  Rapid rescoring is a service offered by most lenders and independent credit bureaus for a fee to assist consumers applying for a home mortgage to secure better interest rates for home loans and possible approval of a home loan.  It is noted that this service is not available directly to  consumers.  The consumer must go directly to the lender or mortgage broker to utilize rapid rescoring.

The way rapid rescoring works is that if there are mistakes or errors found on your credit report you will have to provide written documentation to prove there is an error or mistake on your credit report.  The documentation you have provided is then given to the rapid rescoring representative who will research and gather information to provide to the three national credit bureaus Experian, Equifax and TransUnion.  The rapid rescoring representative will ask the credit bureaus to correct your credit report information.  This process normally takes approximately twenty four to seventy two hours and your credit report is normally corrected and your credit score increases as a result of this effort.  It is noted that if you did this process yourself it could take several weeks to get your credit report corrected.  In many instances time is of the essence for the  consumer  attempting to secure a home loan purchase or refinance of an existing home mortgage.

Keep in mind when you’re trying to purchase a home or refinance your existing mortgage that you are diligent in trying to get the lowest interest rate you can and also ensure if you are turned down for a home loan that you give yourself a second chance by asking the lender or mortgage broker if they offer rapid rescoring.  In addition, if you decide to use rapid rescoring, be sure you do your part by providing the documentation needed by your rapid rescoring representative to assist in correcting negative information or errors that may be listed on your credit report.  You may also want to check with your rapid rescoring representative to see if your debt can be restructured to also increase your credit  score.

How Often Should I Check My Credit Report?

 

You may want to consider checking what’s on your credit report at least once a year.  That’s right at least once a year get a copy of all three of your credit reports to check your credit.  In addition, you may want to know what is being reported on you by your creditors via the three credit reporting bureaus which are the following:  TransUnion, Equifax and Experian.  So, as a general rule it’s a good idea to get copies of all of your credit reports to determine the accuracy of the information being reported. 

 

You are able to secure copies of your three credit reports on an annual basis for free at www.annualcreditreport.com.  In addition, if you decide you want your credit reports more often than on a yearly basis, you can order your credit reports directly from following three credit bureaus: 

 

www.experian.com

www.equifax.com

 www.transunion.com

 

Ordering copies of your credit reports is a very good idea.  The sooner you start this annual practice of getting your credit reports the more informed you may be about the status of your credit.  This will give you a better peace of mind and will hopefully eliminate surprises when you go to apply for future credit and new employment.