by Cynthia Harlan

Created on: August 31, 2008   Last Updated: May 24, 2010

In Oct, 2001 the Fair Credit Reporting Act was passed. This bill allowed consumers to receive one free credit report per year from each of the three credit reporting agencies: Equifax, Experian, and Trans Union. By providing these free credit reports, the government had hoped to ensure that the credit reporting agencies were providing fair and accurate information.

The other purpose of the Fair Credit Reporting Act was to give all people the ability to fight against identity theft. Originally, the free credit report was only offered to people of low income who did not have the means to purchase one; but, that has changed and now everyone is entitled to get one.

One website was established for processing the request for a free credit report under this act. That website is www.annualcreditreport.com. When you go to this site, you are able to gain access to your report at all three agencies. You may make your request for all of your reports at one time or you can ask for each separately. You may receive your results online instantly or request your report by phone or by mail. If you make your request by either of these means it could take up to 15 days.

Although www.annualcreditreport.com is the official site for gaining access to your guaranteed free credit report, you may have noticed that there a lot more sites that advertise: free instant credit reports, free credit reports on line, free credit scores, help with bad credit get your free credit report. Some of these sites are fraudulent. Others give you access to one of the reporting agencies: Equifax, Experian or Trans Union. At the reporting agency site, you can get access to your credit report for free but there are usually strings attached such as purchasing access to your credit score, 7 day free trial to a credit watch service etc. If you do not cancel the free trial within the time frame stated they begin to charge your charge card a monthly fee.

There are a lot of reasons that you may want to know what is in your credit report. The information contained in it can keep you from buying a house, buying a car, getting a job or getting an apartment. Since each of the credit reporting agencies gather there information from different sources, it is important to make sure all three reflect accurate information.

Another reason you will want to view your free credit report on a yearly basis is to be sure you are not the victim of identity theft. Your identity is so much easier to gain access to now that almost every business transaction is done on line. Checking your report carefully can help you determine if you are one of the victims of this silent crime.

If you are going to file bankruptcy, the information gathered from each of these three credit reports is vital. It lists all of your creditors and their contact information. You need this for your case.

No matter what your reason is for checking your credit report, the next step is to be sure the information that it contains is accurate. If you find errors, you can contact the reporting agency and ask them to remove them from your file. If their response is not satisfactory, you have the right to place a letter of dispute in your file.

Whether you use annualcreditreport.com or any of the sites that advertise free instant credit reports, it is vital that you check yours annually. Your credit history reflects on you.

resource: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre3 4.shtm

Learn more about this author, Cynthia Harlan.
Click here to send this author comments or questions.