Free Credit Report Online: What you should know

Learn the facts about free credit report online
 
R.Dodger - October 2009
   
For those concerned about their credit, there is a lot of confusion between your credit score and your credit report.

First, you should understand that your credit score is derived from information in your credit report. Actually, it is very likely that you have three separate credit scores, each one reflecting information within your credit report from the three major reporting agencies: Equifax; Experian; and TransUnion. Because their information is likely to be different, their scores will also differ as well. This is why banks and other lending institutions consider all the scores (based on internal policy).

Second, under federal law you are entitled to get your credit report at no cost at least once a year. You can obtain the reports online with the three reporting agencies (mentioned above). Also, it is good practice to spread your request for each credit report 4 months apart to keep track of your credit history. In other words, request a report from Equifax; then 4 months later, request a second report from Experian; and then 4 months later, a third report from TransUnion. All of these reports are free.

And third, you should focus on correcting any errors in your report. Removing any recorded errors will have an immediate and positive impact on your credit score. Once you have done this, then you should to get your credit score if you plan to obtain financing. Your credit score will give you with an idea of the cost you may be facing when seeking financing; such as, getting credit or loan, or to renegotiate interest rates.

Another confusion at large is the cost for obtaining your credit score. Unlike your credit report (which is free annually per agency), your credit score is not free. You can get it from 3rd party services that offer the credit score (the typical charge is approximately $15 monthly). Keep in mind that a service generally has a 7 to 15 day trial, after which they will bill you monthly until you cancel the subscription.

If you have already applied for financing, the institution you’ve applied should provide you with your credit scores at no cost, if you request it (whether you’re application has been accepted our not). As mentioned above, it is prudent to know your scores before seeking any financing or refinancing.

Free Credit Report Online
Let’s discuss more practical matters. It is possible, unfortunately, for the credit agency to claim that you have already received your free report, and then request payment. Here are some suggestions for you.

First, if you are routed to an out-of-country customer service support line, you should request immediately to be routed to an in-country support line. Doing this could save you tremendous frustration when trying to resolve the problem.

This problem usually occurs when using a service like AnnualCreditReport.com which might be sending improper or incorrect request information to the major reporting agencies (Equifax, Experian, TransUnion).

Second, when you are talking to customer service (from any of the three reporting agencies), you should request to get the free report online. This should avoid the delay in receiving the report, and possible lost reports in the mail.

And third, when you’re dealing with Equifax (which seems to have a majority of the problems), call their manned support line (as of January 2009): 888-265-8807. Please be advised that whatever agency you deal with, try to locate a manned line (vs. an automated line) to help resolve issues quickly.

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