Free Credit Reports Under the Fair Credit Reporting Act

Whether you are applying for a job, looking to purchase a new home or attempting to finance a college education, the information on your credit report says a lot about you. It provides lenders with information about how you handle money and how you handle your financial responsibilities as they pertain to debt and credit. Reviewing your credit report regularly helps alert you to possible identity theft and credit reporting inaccuracies that can influence lenders' decisions.

Background

Enforced by the Federal Trade Commission (FTC), the Fair Credit Reporting Act (FCRA) sets forth objectives and policies to ensure the accuracy and privacy of the information commonly found in credit reports. The regulations laid out in the FCRA provide guidance for both consumers and consumer reporting agencies. These guidelines instruct consumer reporting agencies, including the three major credit bureaus and agencies involved in providing check writing or rental history records, how to handle advising consumers of any adverse actions that have resulted from the information contained in their reports. The FCRA also provides consumers with rights related to receiving, reviewing and correcting the information contained in these reports.

Reasons

Various circumstances may lead to the need to request a free copy of your credit report. The FCRA provides for one free credit report annually from each of the three major credit bureaus upon request. Requesting a free report annually can allow consumers to keep an eye open for fraudulent or inaccurate information. If you have been turned down for credit or suffered another adverse action, such as being turned down for employment, because of information contained on your credit report, you are entitled to a free report as well. Other valid reasons for receiving a free credit report include being a victim of identity theft, receiving public assistance and applying for employment during a period of unemployment.

Requests

Request a free copy of your credit report by visiting annualcreditreport.com. This website allows you to request a free report from each major credit bureau -- TransUnion, Experian and Equifax -- once a year. You can request a report from each of the three credit bureaus at the same time or space the requests out throughout the year. If the information in your credit report was used against you, the credit agency responsible for reporting the adverse information will provide you with a free copy of your credit report upon request. You should receive a letter detailing the adverse action, such as denial of credit, and the credit bureau responsible for reporting the information used to reach the decision. Follow the detailed instructions on this letter to request a free copy of your credit report.

Additional Considerations

Annualcreditreport.com is the only website authorized to provide consumers with free annual credit reports from each of the three major credit bureaus. You will have to provide personal information -- including your Social Security number, date of birth and address -- to verify your identity when requesting your free annual credit report. In addition, information related to loan balances, payments and creditors may be requested to further prove your identity.