When it comes to credit reports, credit history and credit scores, consumers may feel overwhelmed by the volume of information and advice available. Mastering the basics, including how often you can obtain a copy of your credit report, can help you avoid potential risks, such as identity theft, while addressing debt issues.
Purpose
Your credit report contains information about the amount of debt you've accumulated, your payment history and types of accounts you opened, including installment loans (such as student loans) and revolving accounts (such as credit cards). Lenders use your credit history to help determine the level of risk involved in issuing you a loan. With your permission, landlords may look at your credit report to evaluate the likelihood that you'll pay rent on time, and potential employers may view your credit report to judge how well you handle finances. Obtaining your credit report can help you identify whether anyone has taken out credit lines in your name or whether lenders have listed incorrect information that could be hurting your score.
Free Copies
All consumers may access free copies of their credit report every 12 months from the three nationwide credit reporting bureaus: Equifax, Experian and TransUnion. AnnualCreditReport.com is the only outlet authorized to provide free credit reports to consumers. You can request a copy of your credit report by phone or mail or online. Spacing out your credit report requests among the three bureaus enables you to get a free copy every four months, reducing the likelihood of identity thieves using your account for an extended period without your knowledge. Some consumers prefer to access all three credit report copies at once to compare information, because reports may differ based on the information received by bureaus to formulate the credit history. Phone or mail requests may take 15 days to process; online requests for credit reports may be completed immediately.
Other Scenarios
You can get copies of your credit report in other scenarios. Federal law grants consumers the right to access credit reports if adverse actions have been taken against them because of information contained in the report. For example, if your auto loan application was denied because of negative information contained on your credit report, you are entitled to obtain a copy of the report to contest the negative mark, if desired. Unemployed individuals may request a credit report copy for the purposes of job-hunting. Welfare recipients also can request a free credit report copy. Victims of identity theft or fraud may also access credit report copies for free.
Credit Tracking
If you want additional copies of your credit report, you may order them from the credit bureaus, but you should expect to pay up to $10.50 per copy in 2011, according to the Federal Trade Commission. Alternatively, you may pay for credit tracking or monitoring services offered by various companies. Although credit tracking services don't provide additional copies of a consumer's credit report, they notify you when a new activity or item has been posted to your report.
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