Free Credit Reports
Free Annual Credit Reports Under Federal Law
A relatively new federal law, the Fair and Accurate Credit Transactions Act (FACTA), adds to consumers' rights under the Fair Credit Reporting Act. FACTA gives all consumers the right to a free copy of their credit report from each of the three national credit bureaus – Experian, Equifax, and Transunion – once every 12 months. This law was created to give consumers a free way to check reports for any inaccuracies or fraud or identity theft.
To obtain your FREE credit report:
- Request online at www.annualcreditreport.com but be aware you may be accepting terms that would require arbitration in the event of a legal dispute.
- Call 1-877-322-8228
- Write to Annual Credit Reporting Service, PO Box 105281, Atlanta, GA 30348-5281. Your report should be mailed to you within 15 days of the receipt of your request. If you have access to the Internet, go to www.annualcreditreport.com, click on "frequently asked questions" and then select "how else can I request my credit report?" The answer to this question gives a link to a downloadable form that will speed up your request to receive your report by mail.
You will need to provide the following information:
- Full name
- Social Security number
- Date of birth
- Current address, and if you have moved in the past 2 years, a previous address
- To maintain the security of your file, each bureau may ask you some information that only you would know, such as the amount of your monthly car payment.
BEWARE of other websites, emails, or advertisements offering a "free credit report." The only way to truly get your annual report free of charge is the way listed above. Other offers are always from businesses trying to sell you products like "credit monitoring" or are scams trying to steal pieces of your identity information. NEVER reply to such emails, click on any link in the message, or give out personal information over the phone, even if the caller or sender claims to be from a credit bureau. If the credit bureaus need to get in contact with you, they will send you something in writing by U.S. mail. Learn more about "phishing."
You can order all three Bureau's reports at once or just one. If you are about to apply for important credit like a mortgage or car loan, you may want to get all three at once. Otherwise, the best option would be to get one now, then in four months get a second bureau's report, and get the third bureau's report in four more months. This way you can use the new law to get one free report every four months and then start the cycle again.
In addition to this annual free report, you still retain all the rights you had under the Fair Credit Reporting Act. If you are denied credit or insurance or employment based on your credit record, the lender or employer must tell you so in writing and then you can send a copy of the denial letter to the credit bureau to get a free copy of your report.
You are also entitled to one free report if you are a victim of identity theft and have placed a fraud alert on your credit file. To learn more about Identity Theft, how to avoid it, what to do if you suspect it, and what to do if you are a victim of it, see Identity Theft: The Basics and the FTC's special micro site at www.ftc.gov/bcp/edu/microsites/idtheft/.
Keeping track of the accuracy of your credit report allows you to catch any fraud or identity theft early and can also save you a lot of money on loans. Your credit score is based upon your credit report, and a small difference in your score can make a big difference in what you pay for credit! For example, on a $150,000 30-year mortgage loan, if your credit score was 600, your monthly payment might be $1157. But if you reviewed your credit report and took steps to raise your score to 700, then your monthly payment on the same loan might be only $881.
© 2007 Minnesota Community Action Partnership and Hummingbird Credit Counseling and Education, Inc. All Rights Reserved.