How Can I Check My Credit Rating Online?

Your credit rating affects many areas of your life. If you apply for a new credit card or loan, try to take out an insurance policy or even apply for a job, your credit rating can affect your chances of success. Because of this, you should check your credit rating before applying for credit, insurance or employment. You can do it online through a free and simple process, then correct any errors before you proceed with your application.

Website

Use the official Annual Credit Report website, www.annualcreditreport.com, to ensure you get free reports online with no obligation. The law entitles you to one free copy of your credit report each year from each of the three credit bureaus: Experian, Transunion and Equifax. Be sure to order your credit report from each bureau's official website or you might end up inadvertently signing up for paid services. The Federal Trade Commission has received many complaints from people who accidentally visited commercial websites and signed up for free credit reports that obligated them to purchase credit monitoring or other unwanted services.

Verification

You will need to provide personal information to prove your identity when you request a credit report online. In addition to the usual demographic information, such as your name, address and Social Security number, you will have to answer a financial question. Typically it involves one of your current accounts and asks information that only you would know, such as your mortgage holder and payment amount. Providing this information will verify your identity and give you online access to your report.

Disputes

You can review your credit reports online to see the information that goes into calculating your credit rating. You may find incorrect negative information that is affecting your credit rating, such as late payments or charged-off accounts. You have the right to dispute this information with each of the credit bureaus. If the bureau cannot verify the information, it must be taken off your reports. This will raise your credit rating.

Frequency

Even if you are not trying to open a new account or undertake another activity that can be affected by your credit rating, it's a good idea to monitor your credit reports regularly. Consumer advocate Clark Howard recommends getting a copy from one of the bureaus every four months. For example, get a copy from Equifax in January, Transunion in May and Experian in September. Since you are entitled to a free yearly copy from each of the bureaus, this will allow you to monitor your credit rating throughout the year at no cost.