A consumer’s credit score affects their ability to obtain credit cards, receive loans, and can even affect their ability to get a job. If an individual has a low score, they may have difficulty getting a loan, securing low interest rates, and may be passed up in favor of other job seekers. Because credit is so important, consumers need to make sure that they are aware of their score.
Fortunately, it is easier than ever for consumers to become aware of their score. Many companies and websites offer opportunities for consumers to check their credit and stay up to date on their score. This helps many individuals get a hold of their report, who would otherwise be lost as to how to check their credit.
Why Consumers May Need to Obtain an Online Credit Report
There are many reasons why consumers need to check their credit. The main reason is to simply be aware. A consumer’s credit score is extremely important. If an individual has bad credit, their score will affect many areas of their life. For example, a low credit score will make it difficult to purchase a home, while also making it difficult to get approved for an apartment. While some people believe that their score is merely a number, the truth is that this number will affect numerous areas of one’s life.
It is also difficult for consumers to improve their score, without monitoring their progress. Even if a consumer is making the effort to pay all of their bills on time each month and taking other steps to improve their credit, they will never know if their hard work is paying off unless they take the time to check. Also, a consumer’s credit can be negatively affected by inaccuracies on their credit report. Even the credit bureaus sometimes make mistakes. However, an individual will never know if a mistake is affecting their score, unless they look over the report themselves. One of the easiest ways to fix one’s credit, is to have the reporting agencies remove any incorrect information.
The last reason why consumers should obtain an online credit report is to avoid identity theft. Unfortunately, identity theft is a very real threat that affects millions of Americans. In fact, according to the Federal Trade Commission, around nine million Americans become the victim of identity theft each year. To protect oneself, consumers need to check their credit reports for any fraudulent activity. It is better to notice this crime early on, before a criminal has too much time to obtain credit and ruin one’s credit history.
Online Credit Report Services
As most consumers have noticed, there are numerous websites offering to give people a “free” credit report. While this credit report is often free, the advertisement is also misleading. Almost every website that offers a “free” report is trading that free report for a monthly subscription to their service. Many of these websites offer credit monitoring services that a customer must pay for each month. Additionally, many customers do not realize what they signed up for until the money has been deducted out of their account the following month, which many individuals feel is unfair.
However, while these services are frequently misleading, it is not a bad idea to sign up for a credit monitoring service. These services will watch out for signs of identity theft and let a customer know when their credit score has increased or decreased. This makes it easier to know one’s score, without having to obtain a report each month. Some of these credit monitoring services will also refund any funds stolen by an identity thief while a customer is enrolled in their service. This makes these services almost like purchasing insurance against the possibility of identity theft and puts many customers at ease.
How to Get an Online Credit Report for Free
As a result of The Fair Credit Reporting Act, it is possible for consumers to receive a free online credit report. However, consumers may only obtain one free report each year, reported by each of the three major credit bureaus, which are Experian, Trans Union, and Equifax.
To obtain their credit report, consumers may go to AnnualCreditReport.com and fill out a short form to download their report. Consumers that prefer to receive a report by mail will need to go to the website, print off an Annual Credit Report Request Form, and mail it to the service, at Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
If a consumer is working to repair their credit, they may need to obtain more than one credit report each year. This will generally require signing up for a credit monitoring service, at least until the consumer’s credit has been sufficiently repaired. Fortunately, consumers that only wish to find out their score or make sure that their identity is safe will adequately benefit from receiving their free online credit report each year.
Sources:
Federal Trade Commission: Your Access to Free Credit Reports
Free Annual Online Credit Report
USA Today: You Can and Should Check Your Credit Profile for Free
