Consumer Rights to Annual Free Credit Reports

Many consumers worry about falling victim to identity theft and the potential damage to their credit scores. Vigilant consumers use their credit reports to identify suspicious behavior. The Fair Credit Reporting Act allows every consumer access to free copies of their credit report each year.

Credit Report

The credit bureaus maintain records of each consumer's credit activities. This includes a listing of each credit account held by the consumer during the past seven years, a summary of the payment history on each account (including past due payments), the balance due on each account, a list of judgments, liens or bankruptcies against the consumer and a list of inquiries into the credit report. Potential lenders review the credit report for bankruptcies, judgments, liens, late payments and high balances when determining whether to issue credit.

Credit Bureaus

Three credit bureaus monitor credit and maintain consumer records -- Equifax, Experian and TransUnion. Generally, the credit bureaus include the same information on their credit reports. Some variations occur, because a creditor may report activity to one or two credit bureaus, but not all three.

Requesting The Credit Report

Under federal law, each consumer can request a free copy of his credit report each year. The website AnnualCreditReport.com is the only website authorized to do so. Consumers may also call 1-877-322-8228, or they may print out a form from the Federal Trade Commission website and mail it in.

Quantity Of Free Credit Reports

Consumers may request a free credit report from each credit bureau annually. With three credit bureaus, the consumer may receive three credit reports each year. The consumer requests each credit report individually and can spread out the timing of each request. In essence, this allows the consumer to receive a free credit report every four months.

Monitor Credit

After the consumer receives her free credit report, she should review each account listed on the report. If any account is misrepresented, she should follow up with the creditor to correct the information that was reported. If the consumer detects inaccurate information on the credit report, he can file a dispute with the credit bureau, which must investigate the validity of disputed information.

Warning

Several websites lure consumers by offering free credit reports. These websites require the consumer to subscribe to and pay for a service to receive the free credit report. Consumers are not required to purchase anything to receive their free credit report. If a website denies a consumer access to her credit report without a purchase, the consumer is on the wrong website.