All Free Credit Reports Are Not Free

You see the advertisements on the television, you hear them on the radio, and I know you've seen their banners on the internet, "Get Your Free Credit Report!" Tread cautiously among these "Free Credit Report" companies, for they are not free. These companies offer one "free" credit report if you sign up for their "credit monitoring systems". It may even be free for a trial period, like 30 days. However, if you do not cancel your membership, your credit card will be charged for your subscription. These charges can range from $12.95 to $79.95.

The Law

Under Federal Law, you do have the right to receive one credit report each year from each of the credit reporting agencies, Equifax, Experian, and TransUnion, for no charge. There is only one website that is authorized to provide these free credit reports, that website is www.annualcreditreport.com. This website is maintained by the Federal Trade Commission (FTC). Your free credit reports can also be requested by calling the FTC at 1-877-322-8228.None of the other companies offering "free credit reports" are affiliated with the FTC. If you used one of these companies for "credit monitoring" between November 1, 2000 and September 15, 2003 you may be eligible for a refund under the Federal Trade Commission's settlement arrangement. Check the FTC's website for more information.

The SystemIt is important to check your credit reports regularly. By doing so, you can review your reports for errors, identity theft, etc. You should always review your credit report about six months before making a major purchase, such as a home, giving yourself ample time to correct any errors you may find. You should also review each of the credit reporting agencies' reports annually.

You can easily check each one of your credit reports once a year. Use www.annualcreditreport.com to request one credit report from one of the three companies. Four months later, using the same website, request another report from a different company, and four months later request another report from the final company. You have now checked all three of your credit reports in a one year time frame. Four months later, request the original one again.

Be cautious of fraudulent email, representing themselves as the FTC or www.annualcreditreport.com. Never click on a link in an email to respond to one of these offers. There have been many cases of fraud and phishing reported to the FTC. These may be individuals or organizations that are attempting to gain your personal information. If you think you have received a fraudulent email, report it to the FTC. Remember, the FTC and www.annualcreditreport.com will never send you a soliciting email for a free credit report, nor do they use pop-up ads.Regularly checking your credit reports is part of maintaining healthy financial fitness. Checking it six months prior to a major purchase can also prevent delays in obtaining credit. Use the FTC's website to obtain the valuable information that you have the right to for no cost. Beware the companies that prey on your good faith and lack of understanding of the system.