There are three major credit reporting agencies. These are Equifax, Experian, and TransUnion. When applying for a loan, a service to be connected (such as a phone), or almost anything else that requires regular payment, your credit history will be checked through one or more of these reports.
You do not have to pay
It's a misconception that you have to pay for your credit report. Under the Fair Credit Reporting Act, you are guaranteed free access to your credit report on an annual basis. The Federal Trade Commission operates a website--AnnualCreditReport.com--that can give you this free access to your report from all three credit bureaus.
Do not be fooled
Some websites such as freecreditreport.com claim to give free reports. The reports are not actually free because you are charged a monthly fee for access to your report. AnnualCreditReport.com is the only truly free credit reporting site.
It is all about the money
Sites like freecreditreport.com are frequently operated by one of the three big credit bureaus. They do this as another source of revenue.
Use the free option
Be sure to take advantage of AnnualCreditReport.com. Avoid any other site that claims to be free.
Why you should check your credit report
Checking your credit report annually is important. Mistakes have been known to happen and these can cause higher interest rates on loans you currently have or even rejection for those you are applying for. Regularly checking your report might also reveal any instance of identity theft as well.
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