Did You Know That There is Only One Approved Site for Your Free Annual Credit Report?
These days information about obtaining credit reports is readily available to everyone and all to often it is misleading information, especially in the world of the Internet. Unfortunately, some of this misinformation comes from credit reporting agencies, companies that make money by providing credit analysis. Plenty of other independent companies will also do it for you if you are willing to pay the fee.
None of these services are really required for American citizens and residents. Two laws, enacted by the federal government and therefore applicable throughout the U.S., provide individuals with the right to receive their own credit reports free of charge under particular circumstances.
The Federal Fair and Accurate Credit Transactions Act (FACTA) was passed in 2003 requiring that an official website be set up where people can request a free copy of your credit report. You can also mail your request or phone it in, FACTA also states that each person in the US is entitled to one free credit report every year. The website that was set up is AnnualCreditReport.com.
The second relevant law is the Federal Fair Credit Reporting Act (FCRA). This law has been amended several times since it was originally passed in 1970, but still provides several opportunities to receive free credit reports. By this law, you are entitled to a free copy of your credit report if you have been denied credit, employment, insurance, or any government benefit due to credit related problems. You may also receive a free copy if you have been denied housing because of your credit score, are unemployed, are on public assistance, or if you believe your report has been the victim of fraud.
These two federal laws can keep you from ever needing to pay for a credit report. Unfortunately, while these free copies may include a credit score, it will probably be based on a scoring method other than the FICO formula. In order to get your FICO score you may, indeed, have to pay a fee.
So many people do not understand the FACTA or FRCA laws. There are many businesses that are willing to scam those people, take their money, and do very little fore them. If you are careful, however, you can find a very helpful credit monitoring agency that will not only tell you of problems but will also advise you on ways to improve your score.
If your credit is perfect and you dont plan to apply for credit, you may have no need for such a service. However, if you would like to optimize your score in advance of applying for a major loan or are working on credit repair, these services may be useful.
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