Can You Really Get A Free Credit Report?
We've all seen the ads for "free credit reports" in our email
and on various websites.
But are most free credit report offers real?
Unfortunately, most are not actually free. In fact, most require
a monthly "credit monitoring" or other fee - one that most
people really don't need.
Under the Fair and Accurate Credit Transactions Act (FACT Act)
consumers can request and obtain a free credit report once every
12 months from each of the three nationwide consumer credit
reporting companies - Experian, Equifax, and TransUnion.
To get your copy, visit www.AnnualCreditReport.c
om and you can order your credit report online. Or if you
prefer, you can make your request by phone or mail.
Other websites that claim to offer "free credit reports," "free
credit scores," or "free credit monitoring" are not part of the
legally mandated free annual credit report program.
So don't get taken by these other offers.
What should you do if you find any wrong or damaging information
on your credit report?
Contact the credit bureau that issued the report in writing (you
can also file a dispute online.) Be specific about what you
think should be removed, and provide an explanation. By law, the
credit reporting agencies must investigate your dispute within
30 days, and notify you in writing - if the information cannot
be verified as correct, it must be removed.
One way to monitor your own credit throughout the year is to
order one credit report at a time, wait a few months, then order
the next. While not all creditors report to each of the 3 major
credit bureaus, this will give you a good idea about any changes
in your credit.
What about your credit score?
Unfortunately, your credit score is not considered a part of
your free credit report, and must be purchased separately. In
most cases you do not need to order your credit score
frequently, although it is a good idea to know your score before
you apply for any major credit purchases.
Does credit repair work?
Credit repair does work. The credit reporting agencies must
remove any items that are incorrect. And there is nothing that
prevents you from disputing any item on your credit report that
you consider to be damaging. While the credit reporting agencies
have no obligation to remove any items just because it hurts
your credit, many individuals are able to get damaging items
removed from their credit report, and improve their credit
score, just by asking for the item to be verified.
But be careful - there are many companies that will charge you a
fee, basically to do what you can do on your own. And beware of
any company that offers to create a new identity or credit file
for you, as this is fraud, and can get YOU in trouble.
The best way to protect your credit is to be an informed
consumer!