Be sure to look at each of your reports every year. It's simple, it's free and
it's crucial: Old or inaccurate information could cost you a job, an apartment or
a lot of money when you borrow.
All Americans are entitled to free credit reports every year from each of the three
major credit bureaus. The credit reports used to cost as much as $9.50 each.
The three major credit-reporting agencies, Equifax, TransUnion and Experian, are
each required to provide consumers, upon request, a free copy of their credit report
once every 12 months.
The reports will not be sent automatically. Each consumer must request reports one
of these three ways:
1. Go to AnnualCreditReport.com, which
is the only authorized source for consumers to access their annual credit report
online for free.
2. Call (877) 322-8228.
3. Complete the form on the back of the Annual Credit Report Request brochure, and
mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
The brochure, which can be ordered or printed, is available from the Federal Trade
Commission. Click here for more information.
A credit report is simply a rundown of your payment history, listing your accounts,
balances and your payment behavior for each. It is not a
credit score, or
FICO, the three-digit gauge of your creditworthiness used by lenders, employers
and insurers. But
credit scores do use the information on your credit reports
in their calculations, so it's important to spot and correct inaccuracies as quickly
as possible.
What's the catch?
You can order all three credit reports at one time, or at different times throughout
the year. It's your choice. But be sure to order from the centralized
agency. If you go directly to the credit-reporting agencies, you will be charged
unless you fit other criteria for a free report.
The new ruling doesn't replace the other ways to receive a free credit report. You're
still entitled to a free credit report if: you've been denied a loan, insurance
policy or job based on your credit report; you're applying for unemployment or receive
public assistance; or you currently reside in a state that already offers free credit
reports from each credit-reporting agency (Colorado, Georgia, Maine, Massachusetts,
Maryland, New Jersey and Vermont).
Watch for typos
You can access your information online at AnnualCreditReport.com,
but if you don't get the Web address exactly right or if you search for terms such
as "free credit report," you could get sucked in and scammed by one of the many
credit report "impostors" currently inhabiting cyber-world.
The trio of reporting agencies established a single authorized Web source for customers
to access the information for free: AnnualCreditReport.com.
That is the only federally mandated source for free, no-strings-attached credit
reports.
The rest of the Internet Web sites advertising "free" reports -- more than 100 at
last count -- are in fact impostors whose real agenda is to steer unsuspecting consumers
into a for-profit marketing enterprise, according to a World Privacy Forum in-depth
investigation and report.
Dozens of the confusing sites are operated by Experian, Equifax
and TransUnion, the big three bureaus who together run the government-mandated
and authorized free-report site. In other words, while they run one Web site
jointly that offers free reports, they're also running dozens of other sites --
often under different names -- that charge for the same or additional services.
Where and how to get the goods
The same law that mandated free credit reports also covers other types of information
about you, which include:
Medical information. If you've applied for life, health, disability
or long-term care policies, information about your health may have been reported
to the Medical Information Bureau. This membership association of 600 companies
is designed to help insurers detect fraud and deter applicants from lying on applications.
Tenant history. No single company dominates this field,
but one of the larger screening agencies is First Advantage SafeRent.
Auto and homeowners insurance claims. ChoicePoint's CLUE
reports can be ordered at ChoiceTrust.com, while ISO's A-Plus reports can be ordered
by calling (800) 709-8842 or by writing A-Plus Consumer Inquiry Center, 545 Washington
Blvd. 22nd Floor, Jersey City, NJ 07310-1686.
Check-writing history. ChexSystems is the largest player in this
arena. It maintains a database of people who have "mishandled" their bank accounts
(typically by repeatedly bouncing checks). You can order a report online (ignore
any reference to a "small fee") or call (800) 428-9623 or send snail-mail to ChexSystems,
Attn: Consumer Relations, 7805 Hudson Road, Suite 100, Woodbury, MN 55125.
Employment screeners. A typical background-checking firm
doesn't maintain "permanent" files on consumers and instead puts together a one-time
report for employers. Only companies that maintain databases of information
on consumers must provide free reports. However, employers must get your written
permission before a third party can run a background check, and you're entitled
to see the report if it's used to deny you a job or promotion.