Keeping tabs on your credit score is an important part of financial management. Credit scores are based on your credit information, such as whether you have made debt payments on time in the past and how much debt you hold, and can determine whether lenders will approve you for loans and credit. Consumers can order free credit reports from credit agencies which contain the credit information lenders use to calculate credit scores.
Ordering Reports
There are many credit companies that offer credit reporting services, but certain companies are required to give consumers free reports. According to the US Federal Trade Commission, consumers can order a free credit report from each of the three major national credit reporting agencies -- Equifax, Experian and TransUnion -- once every 12 months. Order your credit report from one of these agencies to make certain your report is free. The FTC recommends that consumers link to the official free credit reporting site (AnnualCreditReport.com) through its website to avoid misdirection (see Resources). Credit reports contain the information used to create credit scores but not the scores themselves; lenders may be willing to give you your score when you apply for loans or credit. The FTC states that you can also purchase credit scores from the major credit reporting agencies.
Stagger Your Free Credit Reports
You do not need to order the free credit reports you are entitled to from Equifax, Experian and TransUnion at the same time. Instead, order a credit report from a different agency about once every four months so that you can keep up to date with the current state of your credit file. You should order a free credit report at least once as it can call your attention to suspicious credit activity.
Dispute Erroneous Information
One of the benefits of ordering free credit reports on a regular basis is that it gives you the opportunity to correct errors that may be hurting your credit score. Study all the information in your free credit reports and make sure that it is consistent with your records. If you discover an error in your credit report, contact the credit reporting agency and the creditor associated with the error. Getting errors fixed can quickly boost your credit score.
Ignore Free Credit Score Advertisements
The Internet, television and other media are full of advertisements for free credit reports or scores. Michigan's Office of the Attorney General states that emails, banner ads, pop-ups and telemarketing calls that promise free annual credit reports are often scams aimed at defrauding consumers out of money or stealing personal information. You should not have to sign up for any service to order free credit reports.
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