The Truth About Free Credit Reports

The Truth About Free Credit Reports

Consumer are subject to an overwhelming mountain of buzz about it comes to credit reports and credit scores. There are also oodles of offers available for obtaining this information for "free." The overload can prove daunting even to the most finacial savvy among us to weed through.

So what's the average consumer to do?

First is to know where you can obtain the information you need without paying a dime for it. A lot of companies wish to sucker you in with promises of free credit reports, but when you attempt to obtain the reports, there's a catch, such as enrolling for a credit protection service or committing to a trial period for other services. Stop! Don't be drawn in by these add-on offers.

AnnualCreditReport.comhttps://www.annualcreditreport.com is the free, no strings attached website set up for obtaining your credit report, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion.

This website will allow you to request and print your credit report. You'll also be able to request your credit score (for a fee,) but you are are not required to purchase your credit score in order to get the free reports.

The next question inevitably is, "Do I need to know my credit score?" Most likely, no. Unless you are planning to apply for a large credit line, mortgage a home, or open a business, knowing your credit score may not be of benefit to you at all.

If you are curious to know your score, check into other alternatives before you shell out the cash to find out the number. Have you recently obtained a new credit card, purchased a car, or re-financed your home? Contact your credit lender and see if they have your credit score on file. Most will be willing to disclose the information at no charge to you.

There are also websites available, such as HSH Associateshttp://www.hsh.com/credscorecalc.html which offer credit score calculators to help you estimate your score. While not perfect calculations, they will help satisfy your curiousity by giving you an idea of where your score falls.

Now, it's a good thing to know what your credit report looks like, and an idea of what your credit score is, but what do you do with this information?

The key areas to check for when viewing your credit report are:

Past due accounts or collection activities. If you have a past due account, see what you can do to remedy the account and clear up this ding against your credit rating. If you have collections activity, verify that it's legit, see what you can do to remedy the account, or if it is not legit, work with the credit reporting agency to remove the information or add a notion/explanation on your report regarding the circumstances/nature of why the debt remains outstanding.

Open accounts that should be closed. If you've closed a credit card account or loan account and it still appears in active status on your credit report, work with the company to change the status of the account. Caring excessive debt can affect your crediting rating, so it's best to ensure debt that is paid in full or closed not be counted against you.

Accounts that do not belong to you. If you spot an account on your record that you know does not belong to you, act immediately! Visit the FTC National Resource for Identity Thefthttp://www.consumer.gov/idtheft to find out how to handle the matter, or utilize information provided on the reporting company's website.

It's always best to be informed and be aware. You'll find additional information and details to help with your credit report savvy on the FTC and AnnualCreditReports websites.