Your FREE Credit Report!

Author: Patricia Lynn

Overview

One of your most important assets is your credit worthiness. It determines how much you can borrow, the interest rate, and the terms.

It can also affect approval for apartment leases and utilities, insurance rates, consideration for a job, and more!

Each of the 3 credit reporting agencies, Experian, Equifax, and TransUnion, maintains a credit file in your name. Lenders and other companies you deal with report your financial activity to the credit bureaus. When lenders request credit information about you, the credit bureau sends them a credit report and a credit score.

Let's talk about Credit Reports. (When finished, read our tutorial Your Credit Score!)

What are credit reports and why do I care?

Credit reports contain up-to-date information from your credit file about where you live and work, your credit accounts and payment history, and public record information such as bankruptcies, foreclosures, and criminal convictions. The report also lists the lenders and others who have requested a copy of your credit information.

It is very important that you review the information in your credit reports on a regular basis for accuracy. Creditors can report incorrect information to the credit bureaus, and the bureaus themselves make mistakes. Inaccurate information in your credit file can mislead lenders and negatively affect your credit score.

Reviewing your credit reports each year will also alert you to any unauthorized activity, which is a sure sign of identity theft.

How do I get my free credit reports?

Every 12 months, Americans are entitled, by Federal law, to request one free credit report from the 3 major credit bureaus: Experian, Equifax, and TransUnion. This provision was part of the Fair and Accurate Credit Transaction Act of 2003 (FACTA).

There is only one source authorized by the federal government to provide free credit reports: AnnualCreditReport.com. But there are 3 ways you can request your free credit reports:

• Phone: Call 877-322-8228. Hearing-impaired consumers can access the TDD service by calling 7-1-1 and referring the Relay Operator to 1-800-821-7232.
• Internet: Visit AnnualCreditReport.com. After providing personal information and selecting the credit bureau(s) you want reports from, you will be forwarded to the credit bureaus' websites. The credit bureaus will also request personal identifying information and offer fee-based services (such as your credit score) before displaying your report. You do not have to purchase anything to get the free report.
• US Mail: Complete the Annual Credit Report Request Form (pdf file) and mail it to:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

How do I fix errors on a credit report?

If you see accounts that you don't recognize or information that is incorrect, notify in writing the credit bureau, as well as the person or company who provided the information of the error. As each of the 3 nationwide credit bureaus maintains your credit file separately, you will need to write each credit reporting agency if you find the same error on all 3 reports.

To find detailed information on how to dispute information in your credit file, including a sample dispute letter, read How to Dispute Credit Report Errors (pdf file) from the FTC.

It can take longer than expected to get mistakes fixes in your credit file, so check your credit reports 4-6 months in advance of applying for a mortgage or engaging in any other transaction that will require a "credit check."

Can I get a second free copy of my credit report free in the same year?

Yes, under certain conditions:

• If you believe you may be a victim of fraud.
• If you have recently placed an initial 90 day fraud alert on your credit file
• You've been denied credit, insurance, or employment. Send a copy of your application with your request, within 30 days of being rejected, to the credit bureau that supplied the initial credit report.
• You are receiving public welfare assistance.
• You are unemployed and plan on applying for a job in the next 60 days.
• Your state has passed laws allowing you to get a free copy of your credit report each year from each credit bureau. (One free copy per federal law and one free copy per state law). The states are: Colorado, Georgia (2 copies), Maine, Maryland, Massachusetts, New Jersey, and Vermont.

How do I get my second free copy?

You must contact the credit reporting companies directly for your free second copy. See detailed information below.

If sending in your request by mail, make sure your letter is signed, dated, and includes your full name, date of birth, Social Security Number, current and most recent former addresses, phone number, and the name of your spouse, if applicable.

How do I buy a copy of my credit report?

Use the contact information below:
Equifax: www.equifax.com or 800-685-1111
Experian: www.experian.com or 888-397-3742
TransUnion: www.transunion.com or 800-888-4213

More Information

Each of the 3 credit bureaus offer multiple products and services regarding credit report monitoring, credit scores, and identity theft protection. So do other companies - especially in the area of identity theft protection. As features and prices vary widely, do some research before signing up.

For information about the free credit report provided by federal law, and for links to helpful information such as disputing credit errors and identity theft, visit http://www.ftc.gov/freereports.

The Federal Trade Commission also has a webpage, Credit Reports & Scoring, filled with PDF documents covering topics such as building a better credit report, and how to dispute reporting errors.

For information on the Fair and Accurate Credit Transaction Act of 2003 (FACTA) and other credit and privacy matters, visit www.privacyrights.org.

We hope this information has been helpful. Please see our disclaimer below. Cheers!

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►  Check out our related article All About Your Credit Score! (Many folks don't realize how important their credit score is. We clearly explain just what you need to know!).

►  Want to teach yourself Microsoft Excel? Then don't miss our popular tutorial Excel Made Easy.

Disclaimer: Keynote Support is providing general information in a highly readable format as a service to the visitor. We have made every effort to provide information accurate as to the date of this article, but the reader cannot infer from this article that Keynote Support is providing financial advice. Please consult with your financial advisor.

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