Get a Free Credit Report Annually - Why Pay For It?

Credit reports were once mysterious, difficult to understand, and carefully guarded by the credit bureaus who craft them. But these days, there is no reason you cannot get a free credit report.

There are three major credit bureaus and under recent laws, they must provide you with your report once every 12 months. The Fair Credit Reporting Act states that consumers are entitled to get a free credit report, so that they can review their own record of borrowing and repaying.

These credit reports contain information about your credit history over the last seven years. The information comes from information providers, such as credit card companies, lending institutions, retail and commercial stores – any business that has offered you credit. So, if you can get a free credit report, you can have a clear picture of your financial health, to help you focus on your goals and achieve.

You can get a free credit report from the three primary credit bureaus: Experian, Equifax and TransUnion.

These agencies have developed a Website, where you can get a free credit report: www.annualcreditreport.com. You can also call (877) 322-8228 and request a free credit report. And finally, you can send a written request to. Complete a form from The Federal Trade Commission, http://www.ftc.gov/bcp/conline/include/requestformfinal.pdf and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

It is useful to examine reports from all three agencies, since each uses a different set of information providers, has a different client base, and uses slightly different formulas to determine its credit scores. By sending a request to one agency, waiting a few months, then sending a request to the next agency, you can get a free credit report once a year from each credit bureau.

Even if you have been laid off, applied for social assistance, been denied a job or mortgage, you are still entitled to get a free credit report. In fact, at such stages a review of one’s credit score could be a step towards making financial amends.

There are many reasons to get a free credit report. It provides a clear financial picture, not just for potential lenders, but for yourself. It is a tool for goal-setting, for maintaining financial health, and adding the spending discipline that could spell success for a new business venture, a new home, or whatever financial goals you have in mind.