That catchy jingle that seems to be on all of the cable stations touts a novel service that gives a free credit report. Others claim to provide free monthly credit reports. This does not seem possible, especially since the credit bureaus (where the credit report comes from) only give a free report once a year or when you are turned down for credit. The credit bureaus otherwise charge for credit reports and reporting services. It makes you wonder how the companies with the catchy jingles get away with it. Well, they don't.
No Free Lunch
That's how the old saying goes. It means that there is always a price to be paid. For a free monthly credit report, that price usually comes in the form of a free "trial." Firms provide credit-reporting services, identity theft protection and credit monitoring services, all for a fee. But they advertise a "free credit report" monthly for some, as a way to lure customers into buying the services. The free part is actually the trial, which usually ends in 7 to 14 days, and is often very difficult to cancel.
The Bonus Tactic
A free monthly credit report is also used as a "bonus" for customers who purchase certain credit services, like monitoring and theft protection. The customer is paying for all of the services, but the company calls the credit report a bonus, and can therefore advertise it as free.
Additional Debt Lure
Credit card companies and banks also offer free monthly credit reports---if you open a new credit-card account. Thus, you must assume debt to check your credit for free. Again, the credit report is technically not free, because of the monthly interest and fees spent on the credit-card debt. Unless you are a very frugal and practical spender, the debt on the new card will end up damaging your credit. However, you will get to watch your credit score decrease every month.
A True Free Credit Report
There are ways to get a free credit report. The easiest is the one-time report offered by the U.S. government. The federal government offers Americans a free yearly credit report from all three credit-reporting agencies: Experian, Equifax and TransUnion. There are no hidden fees or charges. See the Resources section for more information.
Other Truly Free Credit Report Sources
Another way to get a free credit report is to request one after you have been turned down for any type of credit, be it auto financing, a credit card, a mortgage or a gym membership. Any time your credit is checked and you are denied, you are entitled to a free report. In addition, any negative action that results from the contents of your credit score will make you eligible for a free report. To get one, simply contact the reporting agency listed on the denial letter. This is a one-time credit report, however.
If you are out of a job or looking for one in the next 2 months, you can apply for a free credit report. Victims of identity theft and recipients of public assistance can also receive a free credit report. You can receive only one credit report due to these hardships---not a free monthly credit report.
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