Credit reports contain all your unflattering financial secrets, including the time you missed your car payment but maxed out your credit card on a vacation or had a lien placed on your home. No matter the stains or praise in your credit report you have a right to know what's included. Consumers are entitled to a credit report under the Fair Credit Reporting Act.
Fair Credit Reporting Act
The information reported by your creditors each month to the three major credit bureaus determines your credit score. The three major credit bureaus, Equifax, TransUnion, and Experian, are required by law to offer you a free credit report under the Fair Credit Reporting Act. The Fair Credit Reporting Act protects consumers against fraud and helps to ensure accurate information is reported to the credit bureaus each month from your creditors. Consumers who monitor their credit reports regularly may find errors that significantly impact their credit rating. Under the Fair Credit Reporting Act, you have the right to not only know what's in your credit report, but to dispute any incorrect information.
When to Get a Free Report
Consumers are entitled to one free credit report each year from all three credit bureaus. In addition, free credit reports are granted under certain circumstances, such as if you are denied credit or legal action is taken against you based on information in your credit report. You can also request a free credit report if you are unemployed or receiving public assistance such as Temporary Assistance for Needy Families.
How to Order Free Report
Order a free credit report by contacting each credit bureau in writing with verification of your identity such as a copy of a Social Security card or government-issued picture ID. You can also order free copies of your credit reports online by visit annualcreditreport.com, a website managed by the three major bureaus. Avoid websites that require you to provide credit card information in exchange for your credit report. These reports are generally available in exchange for a subscription or membership. If you fail to cancel the program before a certain time frame, you incur charges to your credit card.
Credit Score
While your credit report is available at no cost, credit scores are generally available for a fee. You can order your credit score through the three major credit bureaus or a third-party organization. As new items are added to your credit report each month, your credit score increases or decreases. Many organizations offer monitoring services that allow you to track changes to your credit score each month. Though rare, free access to your credit score is available through online services like Quizzle and CreditKarma. These companies allow you to not only check your credit score, but get monthly updates to your score by email.
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