Free Credit Report: Your Annual Opportunity to Get a Free Look at Your Credit |
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Under the Fair Credit Reporting Act (FCRA) each US consumer is entitled to one free credit report every year from each of the three major credit reporting agencies -- Experian, TransUnion, and Equifax. This equals to three free reports per year. Additionally, by using www.annualcreditreport.com, you can get a copy of your Experian, Equifax, and TransUnion reports via one safe and secure website. Why is it important to check your credit report at least once per year? Checking your credit report is essential in maintaining the accuracy of your file. There are many things that can go awry with your credit file, but a regular check up on each of your reports will enable you to spot these issues before they cause problems for you. It is recommended that you check your credit report, one from each of the three major credit bureaus, at least once per year (hence the free report you receive). However, as a credit savvy consumer, it is best to check your reports more often. Preferably once a month for the most protection. There are also credit monitoring services, that you can subscribe to, which will give you an initial report and then alert you each time something within your file changes. This is probably the most successful credit monitoring route since you will know immediately when a change happens, instead of waiting until the end of the month or year to find out. That way, if someone applies for a loan or credit card with your information, you will immediately be notified of the unauthorized inquiry. With this information, you can alert the creditor and credit bureaus so appropriate steps can be taken to keep your file and credit record safe. On the other hand, if you do not find out about a fraudulent inquiry until the end of the month, the perpetrator may have already received the card and ran up a debt in your name. Furthermore, if you only check your report once per year, the account may already be with a collection agency by the time you find out about it. At that point, it may be harder to claim fraud. Why it is important to check all three of your credit reports? Checking all three reports -- from Experian, TransUnion, and Equifax -- is important because each credit reporting agency may have different information on you. For example, you may have a collection on one report that is not on the other two. You may have a late payment that only shows on one file. Furthermore, when most creditors evaluate your report for an extension of credit, they usually only pull a report from one of these bureaus. For this reason alone, if you choose to monitor your inquiries to gain early warning of fraudulent activity, pulling all three bureaus regularly or getting a monitoring service for all three files will be essential. If you haven't looked at your credit report this year, you should visit www.annualcreditreport.com soon. You will also find information on how to receive your reports by mail, instead of over the Internet, if you would like a hard copy for your records. Afterwards, look for a good credit monitoring service that fits both your budget and your preferences. Free Credit Report by Daniel Wesley |
