Real, Free Credit Reports

"What is a credit score? A credit score is a three-digit number that summarizes your credit risk based on a snapshot of your credit report at any given point in time. Lenders, employers, landlords, utility companies and insurers use this score to decide your credit-worthiness and your interest rates. This number can be anywhere from 300 to 850.

"Why is my credit score important?" The answer is that, your credit score is your ticket to lower interest rates! It affects so much of your financial life.

Having a good credit score can determine whether you get a good job, a decent apartment, a deal on a cell phone, low or no deposits on your utilities and reasonable rates on your health, car and home insurance.

Barry Paperno, manager of customer service for credit-scoring company Fair Isaac, which created the widely used FICO credit score, says, "When it comes to mortgages, auto lending, and credit cards, the higher your score, the lower the interest rate you're going to pay." Bad credit will cost you money.

Your credit report is gathered together by Equifax, Experian, and Trans Union using two main sources: information provided by financial institutions like credit accounts and financial associations, and the public record which shows electoral roll information, court judgments, and bankruptcies. Your creditors send in the information that comprises your credit report, and they often make mistakes. But you are responsible for the accuracy of the information in your credit history. That's why it's critical that you acquire and check your free credit reports online often.

Getting free credit reports online is easier than ever before! The Fair Credit Reporting Act requires the three main credit bureaus to give you one free report each year. Equifax, Experian, and Trans Union, distribute these free instant credit reports online at www.annualcreditreport.com. By getting one report every four months you will be able to check for errors frequently. This will enable you to correct any mistakes quickly, before they adversely affect your score. If you've been turned down for credit in the last 60 days because of something a lender saw on your credit report, you can get an additional copy free of charge and dispute the information. This is the only official site for free instant credit reports.

Beware. The Internet is littered with promotions for free instant credit reports, and many are back-door efforts to sell credit-monitoring services and other products, according to the Federal Trade Commission. The FTC said that certain companies failed to adequately disclose that consumers who ordered their credit reports would automatically be charged $79.95 for monitoring services. These companies target people with financial problems who are trying to get out of debt. The "impostor sites" that attempt to hijack consumers seeking to order free credit reports online often use misspellings and sound-alike names to misdirect consumers to sites unrelated to the government-mandated site. The FTC has sent letters to 130 impostor sites warning them that attempts to mislead consumers are illegal.

However, you may want to join a service that tracks your FICO score and sends you email alerts if there are any problems. This site helps your compare and rate different services available on the Internet. http://www.consumercompare.org/credit_report_services/index.php?kw=1cr+gcrmb2+credit%20monitoring%20services&gclid=COWDnN-ZsJMCFRQYsgodvA3rnQ

Now that you know the official government mandated site, get your free instant credit reports with confidence. Keep a close eye on your credit rating, and correct mistakes as quickly as possible. It's worth the effort, because a good credit score can save you thousands of dollars a year.