A credit report is a report containing an individual's or a company's entire credit history, to attest for a good or bad credit reputation. It contains details of all the past debts and repayments, delayed payments, defaults and even bankruptcy information.
This credit report is basically used as a measurement tool for gauging the individual's creditworthiness and quantifying the actual risk the creditor is exposed to, when he gives credit to him. We will segregate here in three segments.
One segment will explain the concept of credit reports, another will explain all about the credit card and credit report relationship and the last one will explain how to generate a free credit report without a credit card. The last segment will show you how to get a free credit report.
The Concept of Credit Reports
Would you give away money to a stranger who said he desperately needed a loan? Surely, you will think about it if he produced a safe common friend to back himself. What does 'safe' imply here? It means a person who represents lower default risk, someone who makes you sure that your money will be returned in time.
In the corporate world, there are no safe friends. The only way to judge whether a loan seeker is potentially a safe bet, is through his individual credit report. A credit report is a complete record of your credit activities till date. It details all your credit card balances, loans outstanding and payment frequency and structure.
It also takes into account all the collection efforts or legal action taken against you, if your payment is delayed or defaulted. Credit reports are constructed by consumer reporting agencies (CRAs), which have huge databases filled with your historical credit information.
They charge a fee for this information and so getting free credit reports is not at all easy. When a credit report is established, it is time to generate a credit rating. A credit rating gives a first glance picture about the kind of credit risk you represent for the creditor.
While a good credit rating gives you easy access to loans and financial resources, a poor rating can substantially limit your scope. For achieving a good credit rating or credit score, you must ensure that your credit information, public record information (bankruptcy, tax outstanding, etc.) and recent credit inquires are clean.
Relationship Between Credit Cards and Credit Reports
A credit card gives so much information about you that most credit report require credit card information for compilations. They are effective credit monitoring tools that know all about your credit history. Credit cards are the vital information database, proving all kinds of information like spending habits, payment habits and the mentality of the person.
For example, if someone's credit card is always maxed out, it highlights a person who is irresponsible with his spending and his credit. This person is used to living beyond his means. He will always get a lower credit rating via his credit report as he represents a higher default risk.
Also, there is a very low probability of him controlling his spending and saving for a payback. Credit cards give away almost all the psychological and behavioral traits of the person and are most essential when identifying exactly how much risk someone represents for a creditor.
If you own a credit card, your credit card company has a database about you. They know who you are, how you spend, what you spend on and even what time you'll be available to call regarding your installments. Just imagine, I didn't know I was that predictable, but my credit card company has already exploited that fact before it even came to my notice.
Enough about credit cards now, let us get to the crux mentioned here, to tell you how to get a free credit report with no credit card needed.
Get a Free Credit Report without Credit Card
If you wish to get your free credit report, with no credit card AnnualCreditReport.com is the official website to help consumers to obtain their free credit report. This central site allows you to request a credit report once in a year from each of the credit reporting bureaus (Equifax, Experian and TransUnion).
You can request one online, by phone or through mail. The credit reports requested online are immediately viewable upon authentication of identity. Free credit reports requested by phone or mail are processed within 15 days of receiving request.