Check Your Free Credit Report Annually


You credit is an important asset and knowing what?s on your credit report only makes sense. Some of us, if we suspect our credit is bad, may feel a bit hesitant to ask for our credit reports. But you can do it in the privacy of your own home, for free, once a year, every year. Finding out what?s on your free credit report lets you know what you have to fix, will alert you to any misinformation, and can help you fight or prevent identity theft.

There are many online services that provide free credit reports. Just put the words ?credit report? in your browser and choose from those that pop up. There are three major credit-reporting bureaus and you are entitled to a free report from each of them every year. The three are Equifax, Experian, and TransUnion. It?s important to get all three of them because they often contain different information depending on which credit bureaus your lenders report to.

While your credit report is free once a year, your credit score, or FICO score, is not. This is the magic number that indicates the health of your credit but you will have to pay someone to find out what it is. The exception is if you apply for a credit card, mortgage, or other loan at your bank. They will usually pull your FICO score and tell you what it is.

You are also entitled to a free credit report anytime you are denied credit, insurance, or, in some cases, employment. If you are a victim of identity theft or credit fraud, you are entitled to two free credit reports within the first year after the incident. You may also get a free credit report if you are unemployed or receiving public assistance.

Some of the online credit reporting services also offer additional information, such as your FICO score and identity theft insurance for an additional cost. You will also find some that will send you regular reports whenever something is added or changed in your credit report. These services usually charge a modest fee per month.

Once you have your free credit report, read it carefully. Look for debts that are not yours, old information that shouldn?t be there, and general mistakes. For example, if you are divorced and your spouse got the house, make sure you are no longer listed on the mortgage. With rampant identity theft, look for credit cards or loans from lenders you are unfamiliar with. Anything out of the ordinary can and should be contested.

To repair errors on your free credit report you will need to write to the lender in question and let them know that the debt they are reporting is not your debt. They will then send you information on how to fix the situation. Also send a letter to the credit reporting agency indication that you are disputing the information. Make sure you explain why you disagree with the report.

Credit bureaus and creditors are obligated to respond to your written request regarding disputes. In most cases they have 30 days to investigate your claim and must remove any information that is determined to be inaccurate. They are also required to contact you with any information pertinent to your claim and to inform you of any changes to your credit report.

Some information will remain on your free credit report for a long time. Bankruptcies stay on for ten years and civil judgments, tax liens, and collections or charge offs remain for seven years. Take heart though. Creditors look for patterns of improvement. Although adverse information will remain on your report for varying periods of time, taking some simple steps to improve your credit score can make a huge difference in your credit report.

First, pay your bills on time every month. Creditors like to know that you are responsible and intent on improving your credit. Second, don?t apply for unneeded credit. Creditors look at how many cards and loans you have, how much you owe, and how much available credit you have. If you do have credit cards, try to keep them below half the available credit limit. Running all your cards up to the maximum will reflect poorly on your spending habits.

Don?t close old accounts even if you don?t use them. Creditors look at the length of time you?ve had credit and that old account with a zero balance is going to look good to them. On the flip side, don?t apply for every credit card offer you get. Each time you apply, your credit report is pulled and if there are too many applications in a short period of time, it will leave a black mark on your credit report and affect your credit score. Finally, time is a great healer, even for credit reports. The longer ago the bankruptcy or judgment, the better your free credit report will be.