Q. How do I secure my free credit report each year? On the Internet there are many options that have a cost?
A. Your credit report is very important when it comes to your financial security. Follow these rules and suggestions to acquiring your report each year.
Checking Your Credit Report: Consumers are entitled to a free copy of their credit report each year from each of the credit reporting agencies. The following will help you understand what is in your credit report, how to access it, and what to do if you find errors.
The Fair Credit Reporting Act: Federal law originally passed in 1970 regulates the collection, dissemination and use of consumer information, including consumer credit information. Along with the Fair Debt Collection Practices Act, it forms the base of consumer credit rights in the United States. It is enforced by the U.S. Federal Trade Commission and was amended in 2003 to enable consumers to receive one free credit report per year.
What information does your credit report contain? Information on where you live, how you pay your bills and whether you've been sued or have filed for bankruptcy. It is basically a report card of what debts you have had and how you pay them back.
Who keeps this information? The three nationwide credit reporting companies are Equifax, Experian, and TransUnion. They sell the information in your report to creditors, insurers, employers and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.
Why would you check your credit report? Your credit report has information that affects whether you can get a loan and how much you will have to pay to borrow money. You want a copy of your credit report to assure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job. It also helps guard against identity theft. That is when someone uses your personal information like your name, your Social Security number, or your credit card number to commit fraud. Identity thieves may use your information to open a new credit card account in your name. Then, when they do not pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.
How do you check your credit report? The three nationwide credit reporting companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report.
' Visit annualcreditreport.com
' Call 1-877-322-8228
' Request the Annual Credit Report Request Form via Internet or phone
' You may order your reports from each of the three nationwide credit reporting companies at the same time, or you can order your report from each of the companies one at a time.
' The law allows you to order one free copy of your report from each of the nationwide credit reporting companies every 12 months. A suggestion from the three credit reporting agencies: request a report from one every four months. This will provide you an update every four months.
' Watch for imposter websites: Other websites that claim to offer "free credit reports," "free credit scores," or "free credit monitoring" are not part of the legally mandated free annual credit report program.
In some cases, the "free" product comes with strings attached. For example, a trial period; if you do not cancel during the trial period, you may be unwittingly agreeing to let the company start charging fees to your credit card.
Some "imposter" sites use terms like "free report" in their names. Others have URLs that purposely misspell annualcreditreport.com in the hope that you will mistype the name of the official site. Some of these "imposter" sites direct you to other sites that try to sell you something or collect your personal information.
Annualcreditreport.com and the nationwide credit reporting companies will not send you an email asking for your personal information. If you get an email, see a pop-up ad, or get a phone call from someone claiming to be from annualcreditreport.com or any of the three nationwide credit reporting companies, do not reply or click on any link in the message. It's probably a scam. Forward any such email to the FTC at spam@uce.gov.
What should you do if you find mistakes? Dispute any errors you find, in writing. Remember, only incorrect information can be removed.
Are there any other instances in which I might be eligible for a free copy of my credit report? Yes, if a company takes adverse action against you, such as denying your application for credit, insurance, or employment. You may ask for your credit report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the credit reporting company. You are also entitled to one free report a year if you are unemployed and plan to look for a job within 60 days. Also, if you are on welfare, or if your report is inaccurate because of fraud, including identity theft. Otherwise, a credit reporting company may charge you a reasonable amount for another copy of your report within a 12-month period.
Jim Winsett is president of the Better Business Bureau of Chattanooga.