The Fair and Accurate Credit Transactions Act has introduced a requirement that all three credit reference agencies are legally obliged to provide U.S. citizens with an absolutely free credit report once a year. Write to, telephone or make an online request and they will provide credit reports for free. Unless there is a genuine reason for this request, such as being denied a loan or insurance policy, don't order a report directly from Experian, Equifax or TransUnion. It should normally be ordered through a centralized, approved agency.
Why is a Free Instant Credit Report Useful?
- Identify and correct credit report errors. Not all of the data held by credit reference agencies will be completely accurate. For example, debts that have lapsed that still show as active. With the exception of chapter 7, unpaid debts will have lapsed after seven years.
- Check for signs of credit card fraud. Signs of identity theft can be pinpointed by credit searches and applications for loans and credit cards that were never made. All credit searches will show on a report for a period of 12 months.
- About to apply for credit. A totally free credit report is necessary to check for any issues that could prevent credit approval. It is also essential to find out what a credit score is in order that the appropriate financial products can be applied for.
How to Apply for an Absolutely Free Credit Report
The only Federal Trade Commission (FTC) authorized source for a free credit history report is AnnualCreditReport.com. It is possible to order a credit report for free from them in the following ways:
- Visit AnnualCreditReport.com and get a free instant credit report.
- Call (877) 322-8228.
- Complete the form at the back of the annual credit report request brochure. Post it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
Is it Possible to Get a Totally Free Credit Report and Credit Score?
Unfortunately, there is no obligation on any of the credit reference agencies to provide a free credit score. This is an important consideration for people who are in the process of applying for a mortgage, credit card or loan. Take advantage of a 7-day free trial offer at freecreditreport.com and cancel the agreement before the end of the trial. The majority of people just need to know their credit score and this is the best way of achieving that objective without paying out any money.
Correcting Issues with an Absolutely Free Credit Report
If planning to apply for credit, be sure to check a free instant credit report with plenty of time to spare. These are huge organizations and have to assist millions of people so it can take time to get an issue resolved. If a victim of identity theft, call each of the credit reference agencies directly as they can place a note on that person's account which will prevent any further unauthorized credit applications being approved.
Sources
"Your access to free credit reports." Federal Trade Commission (FTC).
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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