There really is such a thing as a free credit report, so beware of the “free credit report scams”. Under these scams, you can easily wind up paying money for what the credit reporting bureaus are required to provide to you free of charge.
The Law
Your credit can impact many segments of your life; including your ability to get a job or finance anything. Several years ago, Congress decided that you should not have to pay to see your private information that can affect your life so strongly. Part of the Fair Credit Reporting Act gives you the right to receive a free credit report from each credit reporting agency one time per year. Because there are three reporting agencies, this means that you actually have the right to receive three credit reports every year.
The Agencies
Equifax, Experian and TransUnion are the three nationwide credit reporting companies. Each company may reflect slightly different information. Since you never know, as a consumer, which company a potential lender, employer or landlord will pull the report from; you should know what is on all three reports. Under the law, you are entitled to one free report from each agency once every twelve months. If you pull a credit report in January 2010 from Experian, you cannot get another free one until the following January.
If you are Denied Credit, you are Entitled to a Free Report
If you are denied credit or housing due to something in a report, the company that denied you will send a letter stating why you were denied, and which agency they pulled the report from. You can then contact that agency and request a free credit report. Be prepared to cite the company that denied you for credit, as you will have to give that information to the credit reporting bureau before they will release the report.
What you are Not Entitled to
You are not entitled to the credit score. This is the actual number assigned to your report. While Congress had the best intentions in providing a way for people to get their reports, they failed to force the companies to provide you with your numerical score free of charge. This score is the first thing companies look at when viewing a credit report. At this time, the only way to view the score is to pay some nominal fee to the credit reporting agency. However, you can and still should review your report for incorrect information, collections, and other potential issues.
There is Only One Website
Most people know they can get a free credit report. What they don’t know is that there is only one website you can go through to get the free report. That is www.AnnualCreditReport.com. When you visit this site, you can choose the reporting agency you would like to request your report from. You will then be directed to the site for that agency, and you will be able to request your report. You can have it mailed to you, or you can view it online. If you view it online, be sure that you have printer and paper ready to go so you can print it out. Once you have viewed it and close it, the agency will say that you have received your free credit report.
The Phone Number
You can also call and request your free credit report. The number is 877-322-8228, and by calling this number you can request your reports through the mail.
The Credit Score Scam
All three credit reporting agencies have a scam going where free credit reports are concerned. When people log on directly to the reporting agency, without going through www.AnnualCreditReport.com, there is no way to obtain the free credit report online. You can request to have it mailed to you, but most of us don’t want to wait for that. To get the report online, going directly through any reporting website, you will have to pay some type of fees. The most common scam involves requiring you to pay for that all-important credit score. They charge you a nominal fee for the credit score, and then they’ll provide you with the “free” credit report. However, as you know; if you have to pay anything for it; then it’s not free! Many people wind up paying for the credit score number, or some other service, believing that it is the only way to actually get their report.
The Credit Monitoring Scam
Other agencies and companies will offer you your “free” report provided you sign up for credit monitoring services. With credit monitoring, they will notify you if suspicious activity appears on any of your credit reports. While this may sound like a good idea, it is by no means free. And the fees often do not begin immediately. They will usually kick in after a “free trial” and the only way to stop the fees is to call them and cancel the service. If you forget to call and cancel the service, these fees can quickly add up to a substantial amount of money. Regardless of what they call the fee or service, if you are being asked to pay for anything then you are not receiving your free report.
The Bottom Line
The fact is that if you are asked for a credit card number, then the report is not free. There will be fees attached to it. The second a screen pops up asking for payment information, log out of the site and visit www.AnnualCreditReport.com. Follow the directions and links there and you will receive a credit report that is truly free. If you want to keep a very close eye on your credit ratings, stagger your requests for reports. Rather than getting all three reports at the same time, request one from each agency every four months. This will allow you to keep a close eye on your credit, without falling for any of the scams.
