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Free Credit Reports From The Government
The
Federal Trade Commission (FTC) has set up a new website (www.AnnualCreditReport.com)
where US residents can obtain free copies of their credit reports from
the three major credit report bureaus (Equifax, TransUnion and Experian).
The FTC site was set up as part of the Fair and Accurate Credit
Transactions Act enacted last December. The site was set up in an effort
to help fight the increasing threat of identity theft. The credit
reports must be ordered from the FTC site to get them for free. If you
order your credit report directly from one of the credit report
agencies' sites, you'll be charged a fee for the report.
While a number of websites on the Internet currently offer free credit
reports, these free reports require a credit card be put on file as a
free trial membership of their credit report monitoring service. The
reports have been free if you remember to cancel the trial membership,
but can end up being quite costly if you accidentally forget. The new
FTC site is marketing free and no credit card is required.
To
request your credit reports, you'll need to provide your name, address,
Social Security number and date of birth. In addition, the credit
bureaus may ask you for other information to confirm your identity such
as your current monthly mortgage payment. Consumers can also order their
free credit reports by calling 877-322-8228 (toll-free) or by mail by
writing to: Annual Credit Report Request Service, P.O. Box 105281,
Atlanta, GA 30348-5281
The
free credit reports aren't currently available to all US residents.
They're being phased in over the next year by region to prevent the
system from being overwhelmed. Currently residents living in Alaska,
Arizona, California, Colorado, Hawaii, Idaho, Montana, New Mexico,
Nevada, Oregon, Utah, Washington, and Wyoming can obtain the free credit
reports. Residents in the Midwest can get their free credit reports
beginning in March, residents in the South beginning in June and
residents in the East beginning in September.
Instead of ordering credit reports from all three credit report agencies
at once, you might want to consider staggering the three reports so that
you receive one credit report every 4 months. This allows you to see how
your credit report is changing over time and whether any mistakes you
find have been corrected. It will also increases the chances that you
will catch any attempts at identity theft more quickly. If, however,
you're considering a large purchase such as a home or car where your
credit score will be used to determine your eligibility, you'll want to
get all three right away. This will allow you to take care of any
potential problems as soon as possible.
Once you've received your reports, review each one carefully. The three
credit reporting agencies handle millions of pieces of information each
year and some estimates have errors in as many as half of the credit
reports with a major error in ever one in four. By making sure that all
the information contained in the reports is accurate, you will ensure
that you receive the best rates from credit agencies in the future.
Now
that credit reports are free of charge, there is no reason not to
request them each and every year. Keeping tabs on your credit report is
one of the most effective ways to protect yourself against identity
theft and make sure that all the information that your creditors are
accessing is accurate.
This article is the property of
www.bestcreditcardsonline.com,
which has been offering credit cards services since 2002.
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