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FREE CREDIT REPORT?
While most people know that obtaining a regular credit report is a smart thing to do, many people are unaware that once a year, you can obtain one for free! The FACT ACT (Fair and Accurate Credit Transaction Act) of 2004 entitles each American to one free credit report per year.
The program is a new one; dates for availability vary by state, as shown below:
December 1, 2004: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.
March 1, 2005: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
June 1, 2005: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas.
September 1, 2005: Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia, Puerto Rico, and all U.S. territories.
You may contact one of the three main credit reporting companies (Equifax, Transunion, or Experian) and they will, upon request, provide you with a copy of your credit report.
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What does a credit report contain? It contains a listing of all firms, organizations, banks and credit card companies to whom you own or have owed money. It will indicate how much credit you have and will detail your payment history, including overdrafts, late payments, bankruptcy, or other problems. Credit reports are used by lenders to determine whether or not to lend money, and the contents of the report could affect the interest rate of any future loans, depending on how creditworthy the lender deems you to be.
It is important to regularly look at your credit report, especially if you are considering applying for a mortgage, as it is not uncommon for credit reports to contain errors. Payments that were made on time may be shown as late or not having been paid at all. You may have been a victim of identity theft without even realizing it! Any charges, bills or other obligations made by a third party under your name will show up on your credit report, and you should start by clearing up any erroneous items listed.
Another benefit of having a credit report in hand is that it protects you from common scams, where unscrupulous individuals may contact you claiming that you owe them money, even though you don’t remember the debt.
Once you have your report firmly in hand, you can then assess your situation and prioritize the order in which your creditors will be repaid.
In addition to your free annual credit report, you may also purchase a credit report from Equifax, Experian or Transunion at any time by calling them or visiting their Websites. Links to their Websites can be found on our Links page.
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