How often do we hear financial experts recommend consumers to regularly obtain a copy of their credit report as one way to win the battle of debts. Surprisingly however, not all consumers clearly understand matters that concern one’s credit report. Let’s tackle the most important questions about your credit report along with their answers:

Is it free to order a copy of your credit report? According to the Fair Credit Reporting Act of 2003, all consumers are eligible to receive one free credit report each year. Those who have been victims or suspect to be victims of fraud, those who are unemployed and want to look for a job, and people who have been denied credit by a lender can also request for a copy of their credit report at no cost.

Where can you request a free credit report? The three credit bureaus have set up a website where consumers can avail of their yearly free credit report. Visit www.annualcreditreport.com or call their toll-free number at 877-322-8228. You can also complete the Annual Credit Report Form Request and send it via post mail at The Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

What information would be required from you? You will need to provide your name, address, Social Security number, and date of birth. You may also be asked to reveal details that no one else would know such as the amount of your monthly mortgage. But be warned! Before you provide any of your identification, make sure that you are in the right website.

How much will it cost to get a second copy of your report? Most credit reporting agencies charge $9.00-$12.95 for your credit report and credit score. Take note that it is best to order your report straight from the three major credit bureaus.

What if you don’t understand the codes in your credit report? Your credit report should come with a separate sheet that explains these codes. If you find difficult to go over the explanations by yourself, don’t be afraid to ask for help.

What are the notes listed under the Inquiry Section of your credit report? These are the inquiries made by the lenders you applied credit with. Too many of these inquiries bring negative impact to your credit score. Some lenders may actually decline your application just because there are too many inquiries listed in your account. Lenders can automatically regard you as high risk borrower because you’ve been submitting too many applications to different lenders without getting a successful approval.

What if you see charge offs in your credit report? Charge offs indicate that a lender has exerted all efforts to collect your payments without getting any result so your lender chose to give up on your debts and declare them as charge offs. Obviously, having a note of charge offs in your report makes you a high-risk borrower in the eyes of prospective lenders.

Is it possible to remove a charge off from your report? There are only two ways to remove a charge off from your report and that is to pay them or declare a bankruptcy. Still, a bankruptcy should only be regarded as a last resort if all measures have already been taken but failed.