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Are Free Credit Reports Really Free? Print E-mail

By law, each of the three nationwide credit bureaus—Experian, Equifax, and TransUnion—are required to provide you with a free copy of your credit report at your request once a year. The Federal Fair Credit Reporting Act (FCRA) requires the free annual credit reports. This Act is intended to help consumers stay informed about their credit status and fight identity theft.

 

AnnualCreditReport.com, which can be accessed at www.annualcreditreport.com, was created by the three primary credit-reporting agencies. This Web site provides consumers with a centralized way to access their annual free credit report. This centralized credit information service was created in accordance with the Fair and Accurate Credit Transactions Act (FACTA) of 2003. In addition to ordering free annual credit reports online, consumers can also order them via mail or phone.

 

While there are Web sites that claim to provide consumers with “free” credit reports, there is only one source—AnnualCreditReport.com—that is authorized to do so. Some consumers who thought they were accessing the correct site have told the Federal Trade Commission that they have had to purchase a product or service in order to obtain their “free” annual credit report.

 

It is a good idea to check your credit report at least once a year. For someone with good credit, checking the report once every 12 months is probably sufficient. Even though you are only allowed one free report per year, it is a good idea in some circumstances to check your credit more frequently. For example, you might want to check your credit before making a major purchase like a car, a house, or six months prior to applying for a loan to allow enough time to clear up any discrepancies. If you are denied credit or have been turned down for a loan, you will want to review your credit report as well. If your credit rating factored into the decision to decline your application, you are entitled to a free copy of your credit report.
 

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