Getting a free credit report and ensuring the accuracy of information in your personal file is beneficial when you are trying to apply for a mortgage loan or finance a car. Lenders don't know you personally, and credit reports are the only way they can assess your credit history. Often, mistakes or errors do occur, and these mistakes can reduce your credit rating and prevent credit approvals. Acquiring a free report helps you catch mistakes before you need to apply for credit.
Where to Get a Free Report
Under federal law, consumers are entitled to one free credit report each year from each of the three major credit bureaus -- TransUnion, Experian and Equifax. They have set up a website, annualcreditreport.com, which is the only online source for a free copy of your personal credit file, says the Federal Reserve.
Ordering Free Report
There is more than one way to acquire a free credit report from annualcreditreport.com. Consumers can expedite their request and complete an online form by visiting annualcreditreport.com. Consumers can dial the toll-free number to request a free credit report (877-322-8228). The third way to obtain a free credit report requires downloading a request form online, and then mailing the request to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
Misconceptions
Watching television commercials or conducting an online search for free credit reports reveals several companies that claim to give consumers a free credit report. However, these agencies aren't authorized to provide free reports, and often, free reports are only provided after consumers enroll in a particular program. Read the fine print and be leery of companies that offer so-called free credit reports, warns the Federal Reserve.
Benefits of a Free Report
Forgetting or ignoring to check credit reports regularly can lead to a decreased credit rating. If someone were to steal your identity and open numerous accounts in your name, you can take action to stop the thief when you discover the unknown accounts in your personal file. Likewise, acquiring a free report annual allows you to catch mistakes made by your creditors. Go through each entry to ensure accuracy. Creditors may fail to update account balances or accidentally report a paid-off account as delinquent. The report includes information on how to dispute inaccuracies if you find them.
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