Free Annual Credit Report

Background

Thanks to the Fair and Accurate Credit Transactions Act of 2003, all United States citizens can get a free annual credit report from each of the three major credit reporting companies. After realizing that credit fraud is on the rise, Congress passed this bill to make it easier for consumers to keep track of their credit background. The free reports were rolled out geographically in 2005 and are now available to residents of all 50 states.

Before this Act, getting your credit report meant spending about $10 each to purchase copies from TransUnion, Experian, and Equifax, the three credit reporting companies. You can still purchase a copy from those companies now if you want more than a single credit report from each annually or if you want additional information, like your credit scores, which is included in the reports for a fee.

Several states enacted laws requiring reporting companies to provide a free annual credit report before Congress did. Since the law in those states still apply, residents of Maine, Vermont, Massachusetts, New Jersey, Maryland, Georgia, and Colorado can get an additional credit report for free each year.

Consumer advocates recommend spreading out your credit reports over the year, rather than requesting a report from each of the three agencies at one time, but it’s also a good idea to get one from each of the companies a few weeks before you apply for a loan or mortgage. By seeing potential credit card fraud or an error on your report early enough, you may be able to resolve it before the lender sees it. At the very least, it will give you a chance to explain why something isn’t correct. Reviewing your report history is also a great way to keep track of your credit card debt.

How to Get Your Free Annual Credit Reports

The best way to get your free annual credit reports is by going to www.annualcreditreport.com. Make sure you pay attention to that web address. Jumbling up the words or leaving one out will lead you to different sites that charge high rates for your credit reports plus require you to purchase other products.

Once you are at the site, you will need to fill out a brief form with your name, address, date of birth, and social security number. From there, you will be asked to choose which company you want to use for your report. You can systematically choose to get one from each of the major credit reporting agencies now, or just one, then go back at another time to get a free annual credit report from each of the remaining two.

Your information will then be sent electronically to that company, which will confirm it against its database. After one or two more questions about your financial background, like the amount of your monthly mortgage payment or the name of your bank, your report will be generated in a few minutes.

Be prepared to provide past home addresses, credit card balances, or credit card numbers as a means of verifying your identity. If you enter information that does not correspond with the company’s database, your request will be denied. This is to prevent anyone else from accessing your report if they are trying to steal your information.

You can request a free annual credit report over the phone by calling 877-322-8228. There is also a request form available on the Annual Credit Report website, which you can fill out and mail in.

Using Your Free Annual Credit Report

After you review your credit report, it may be necessary to correct some of the information you find there. Because potential lenders who are determining your interest rate may review your file and compare it against the information you provide them, it is essential that all of the information is accurate, even if it seems trivial like an incorrect address from your last residence. Incorrect information may also be a sign that someone is trying to steal your information, so getting your report back on track is a good step in keeping your credit identity safe.

Your report will include an address or toll-free number for disputing incorrect information. After contacting the reporting company, you should also get in touch with the lender who included the incorrect information. For example, if your gas card listed an incorrect mailing address for you, make sure they have your actual address on file. This can prevent your private information from being sent to someone else who may use it for illegal purposes.

After you dispute part of your record, you qualify to receive another free report from the same company to verify that the information has been corrected.