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Understanding Your Credit |
Stagger Free Credit Reports
Throughout the Year
Your Credit Report Says a Lot About You
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On the surface, it seems logical: You type the phrase
"free credit report" in a search engine to access the Web site that offers
free reports--which you're entitled to, by law.
But here's the catch: Your search results might not drive you to the one
legitimate Web site operated by the Federal Trade Commission.
Q: What's the danger in going to the wrong Web site to get your free
credit report?
A: These sites hook you with offers of so-called free credit
reports while aggressively marketing other services. Go to any site other
than www.annualcreditreport.com and you may wind up paying needlessly for
services you don't want. Or, you could pay $75 for a credit score that
otherwise costs $8 to $12. In one example, a site advertised a "free
credit report" but failed to disclose adequately that, if you signed up,
you automatically would be enrolled in a credit-monitoring program and
charged $79.95. Many disclosures are in the fine print and easy to
overlook.
Q: What are some sites to stay away from?
A: The one most heavily advertised is freecreditreport.com. Other
variations include free-credit-reports.com,
freecreditreportsinstantly.com, thefreecreditreportsource.com,
creditreport.com, creditreporting.com, and nationalcreditreport.com.
Q: Which site allows access to free credit reports without trying to
sell unnecessary services?
A: Go to www.annualcreditreport.com, which was established after
the Fair and Accurate Credit Transactions Act of 2003 gave consumers the
right to obtain--once a year--a free credit report from each of the big
three credit reporting agencies: Equifax, Experian, and TransUnion. Or,
you can call toll-free 877-322-8228.
Q: Should I order the three annual free credit reports all at once?
A: You can order them all at the same time. A better strategy is to
stagger your requests throughout the year. Order a free report from one
agency, then wait four months and order a report from a different agency,
then wait another four months and order the third report. After a year,
start the process over again. That way, you're more likely to detect
errors--or even fraudulent accounts set up in your name--than if you wait
a whole year to look at all three of your reports.
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Your Credit Report Says a Lot About
You
Don’t be the last to
know what your credit report says about how you handle money, especially
if you’re considering borrowing money for a house or a new car.
Your credit report includes how much credit you have and how you repay
your bills; public record information, including arrests, bankruptcy, tax
liens, or monetary judgments filed against you; and identity information
such as name, nicknames, Social Security number, birth date, current and
previous addresses, and names of past and current employers. It also lists
the names of anyone who’s obtained a copy of your credit report for any
reason.
But, lenders aren’t the only ones seeking information about your credit.
Under the Fair Credit Reporting Act, a credit bureau may sell your report
only to lenders, insurers, landlords, employers, and businesses that meet
the need as defined by law. You must give written consent before credit
bureaus can give information about you to your employer or to prospective
employers.
The denying party must give you the name and address of the credit bureau
that provided the information and, under federal law, you’re allowed a
free copy of the report within 60 days of the denial.
Be wary of online or other offers that promise a free copy, as they often
have hidden fees.
Finally, when you receive your report, look it over for inaccurate
information. If you find mistakes, follow the credit reporting agency’s
instructions on the back of your report outlining how to request
corrections. The agency must investigate your claim, usually within 30
days. Under federal law, if an agency can’t verify a disputed item, it
must delete or correct the item.
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