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Understanding Credit Reports: Free-of-Charge
All consumers today have the chance to get a copy of their
credit reports free of charge once yearly. A federal law was
enacted in December 2004 that called for major credit
reporting agencies like TransUnion, Equifax, and Experian to
give consumers free credit reports once yearly whenever
requested. To avoid an excessive number of free credit
report requests at the same time, the Federal Trade
Commission will allot request time to certain regions over a
span of nine months. This means free credit reports will
start in the West (for a period of time) and head East, with
the latter Eastern states being up for free credit reports
after Sept 1, 2005.
This program has extended nationwide at a steady pace this
year. Western and Midwestern states like California and
Kansas now have the ability to check their free credit
reports, with everyone in the country becoming eligible by
September when the last of the Eastern states will be added.
Already, every American has the chance to obtain his/her
free credit report with no hidden fees and charges. Credit
reports used to incur access fees in the past, which drew
the ire of many Americans. The Federal Trade Commission’s
ruling under the Fair and Accurate Credit Transactions Act
call for these free credit reports.
Under this statute, the three major credit reporting
companies of TransUnion, Equifax, and Experian have to give
a free credit report copy once a year to consumers who fill
out a simple online form to request one.
This initiative was passed because of Congress’ desire to
inform the public of their financial situations. Free credit
reports allow consumers to verify their information for
accuracy. This is the first step against fraudulent scams
like identity theft.
What Can I Do with my Free Credit Report?
Credit reports have maximum value if the information on them
are correct. Individuals checking their credit histories are
the best way to proceed with this. Credit information can be
changed the quicker you check your credit report.
Look for identity theft
Check for any glaring errors
Look for your Free Credit Reports
AnnualCreditReport.com is one of many websites that provide
free credit reports. Be weary: you might receive spam email
as a result leading you to other partner websites. Also keep
in mind that the law does not grant consumers access to a
free credit score check. AnnualCreditReport.com charges a
$5.95 fee for consumers to check their credit scores.
Purchase a copy of all free of your FICO credit scores and
credit reports through Fair Isaac’s website at
www.myfico.com
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