The ads for free instant credit reports are plastered all over billboards, in magazines and even on the Internet. Everyone knows that as US citizens, we get a free report every year, but which ones are the best to pick? How can you tell if the “Absolutely Free” report you apply for is actually free, or if it will end up costing you in subscription fees somewhere down the line? Learn more about the Fair Credit Reporting Act, and how it affects your free annual debt history report.
Fair Credit Reporting Act
The Fair Credit Reporting Act (FCRA) text compiled by the Federal Trade Commission (FTC) includes pertinent information from amendments to the act set forth in a number of other laws, including the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 and the Fair and Accurate Credit Transactions Act of 2003. Among other things, the FCRA ensures that all US consumers have free access to an up-to-date report from each of the three major reporting agencies (Experian, Equifax and TransUnion) on an annual basis, and when they have been denied credit due to information in their report.
Absolutely Free Instant Reports
Ads are all over the Internet, but can you really get an “Absolutely Free" instant report without subscribing to a credit monitoring service? The short answer is - Yes. Although many companies advertise free credit scores and reports, the only place that offers your free yearly report, with no strings attached, is AnnualCreditReport.com. Other services will ask for a credit card number, and charge for services that include credit monitoring, or a look at your score.
Credit Scores and Reports
The difference between a credit score and a report is in the document's purpose. A credit score is used to determine creditworthiness, and is based on a number of factors, including length of credit history and the ratio of available credit to credit balances. A debt history report shows details about each individual debt, including payment history and current status of the account. Although the FCRA mandates a free debt history report, it does not require that credit reporting agencies provide free scores to consumers.
Free Credit Information
Annual Credit Report is the only site authorized by the FTC to provide annual reports to US citizens. By using the secure request form, you can get your free credit history from each of the three main reporting agencies on an annual basis. To keep a close eye on your credit, space the three reports out throughout the year, requesting a report from each agency every four months.
Updated: March, 2011
Source:
Federal Trade Commission. Fair Credit Reporting Act. Accessed March, 2011.
Victoria Nicks - Victoria Nicks has a Master's Degree in IT, and extensive hands-on experience with various types of hardware and software.
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