UPDATE: Many people continue to ask about Obama credit card debt relief.  It is very important for Americans to remember that there is no such thing as an Obama credit card debt relief program or plan at the present time.  If you feel that your credit problem has gotten out of control and you need help then it would be smart to access the FTC website.  This website also promotes the Experian free annual credit report sponsored by the government at annualcreditreport.com.


Over the last several months a very hot topic of discussion has been the free annual credit report.  Many Americans want to know if it is possible to gain access to an Experian free annual credit report from the government.  They would also like to know if there is going to be a free credit score included in this online credit report analysis.  As of August 2010 there is no bill to push for a free credit score to go along with the free annual credit report from the government and FTC.

It is also very important for all Americans to realize that there is only one true place to receive an Experian free annual credit report from the government – annualcreditreport.com.  This is the only website that has FTC approval and it is important to note that the FTC has come down very hard on websites that claim to offer a free annual credit report.  Since April 2nd, 2010, the FTC has issued several warnings to websites that continue to claim that they offer a free annual credit report.  These websites are as follows:

NationalCreditReport.com
FreeCreditReport4U.com
MyCreditCenter.com, 3CreditReport.com, OnlineFreeCreditReports.com
My3BureauCreditReport.com, FreeScore.com, Free3BureauCreditReport.com, FreeTripleCreditScore.com, FreeOnlineReportNow.com
GoFreeCredit.com, FreeCredit-Reports.net, Free-Credit-Reports-Repair.com
FreeCredit-Report.net, SmartCredit.com
3FreeCreditReportsUSA.com
AllFreeCreditReports.com
FreeCreditReportsUSA.com

Before deciding to use any of these websites please understand that they do not have government or FTC approval.  You will need to use annualcreditreport.com if you want a truly free Experian free annual credit report.  It is very important for all borrowers to remember that if they want a credit score from Experian they are going to have to pay a fee which is usually in the range of $15 to $30.  Sometimes it is well worth the extra money to put a number value on your overall credit history.

One of the main reasons that it is very important to check your credit score each and every year is to make 100% certain there are no errors or mistakes on this report.  By having errors on your credit report you will likely find that you receive much higher interest rate offers on any amount of money you desire to borrow.  It could also be the case that you have seen an increase in the interest rate on your car loan, personal loans or credit cards and you did not even realize that it was the case because of errors on your credit report.

For this reason, it is always smart to check this report at least once a year.  With the government offering one free credit report yearly there is no reason that Americans should pass up this opportunity.  Even though you will not get a free credit score there are still many great benefits when it comes to knowing what is on your Experian credit report.  This could also greatly help you to better understand what bills you need to pay first.  Any red flags are usually illustrated on a credit report and these are issues that you need to fix sooner rather than later.  The longer you let bills go unpaid the more it will negatively affect your overall credit score that is used by lenders.

It is very important to remember the Experian does not use the FICO credit score system as only Transunion and Equifax use this system.  There has been much debate about this issue but Experian has not disclosed if the credit score you receive is a true FICO credit score.  No matter what the case it is a factor when it comes to getting low interest rates on any type of loan you take out.  When it comes to a FICO credit score or an Experian Credit score here is the most common illustration of how it works:

The exact formula of the FICO and other scoring models is a trade secret. However, Fair Isaac has identified five factors and the importance given to each factor. Other scoring models include most of the same factors. However, the weight given to individual factors may vary.

The five are (www.myfico.com/CreditEducation/WhatsInYourScore.aspx):

• Payment history – 35%
• Amounts owed – 30%
• Length of credit history – 15%
• New credit – 10%
• Types of credit used – 10%

As you can clearly see, payment history is the most important part of a credit score but there are many other parts as well.  When considering a new credit card or other line of credit it is important to realize that this will definitely affect your credit score.  Instead of dumping that credit card you have had for years it might be a smart decision to keep that card just to prove to creditors that you can stay with one company.  With many Americans seeking new credit cards each and every day it comes as no surprise to see credit scores dropping as a whole.  You might not have realized this to be the case but always think twice before submitting that online application for a new credit card.

Every financial decision you make in your life will greatly affect your credit score.  It is always smart to look at every financial choice from the eyes of a creditor.  Would this be a smart decision or a silly decision in their eyes.  If you purchased a $1500 computer and paid it off in the next month then that would likely be looked at as a smart decision. If you purchased $1500 worth of new clothes and didn’t pay this amount off for several years then this would not look like a very good decision.  While creditors cannot see exactly what you buy they can see just how much you spend and how much you pay off each and every month.

With seeking an Experian free annual credit report from the government it is always smart to surf over to annualcreditreport.com.  Even though there is no free credit score with this free credit report it is very valuable to those who many be making a big purchase in the near future or looking to take out a major loan.  Always make sure that your credit report is completely free of errors before applying for a car loan, home loan or personal loan.  By having errors on your credit report you could get quoted interest rates that are much higher than what you deserve.

Author: Charles Dean