How can I get a totally free credit report?

Introduction

Free credit reports seem to be a dime a dozen these days. Television commercials are inundated with advertisements to visit a variety of different credit reporting agencies to obtain free credit reports. It is understandable that many are confused when it comes to what reporting agencies or company claims are actually correct when they claim to be free. Obviously when you go looking for a free credit report you want to make sure that it is in fact totally free and not free with the inclusion of small print that requires a membership, subscription, or monthly payment.

Fortunately there are ways to obtain a totally free credit report from each of the tree big credit reporting agencies (Equifax, Experian, and TransUnion). Due in part to the fact that identity theft is on the rise and consumers have a right to protect their personal financial information, the FTC has created a federal law that entitles each and every consumer to stay informed about what these three credit reporting bureaus are reporting about them. It no longer made sense to have to pay in order to fight back against identity theft, fraud and errors. So now a free annual report is provided.

The 3 ways to get your free annual credit report

There are only three ways to get a totally free annual credit report. All three of these methods involve going through the three main government recognized credit reporting agencies in order to obtain your credit information. These three ways to obtain your free credit report are listed below:

1. Visit the website

The three credit reporting agencies have created a website to request your annual credit report for absolutely no charge. To get to this site go to www.annualcreditreport.com and order your report. There are many offers on the Internet for free credit reports online or free instant credit reports, but this site is the only one that offers your free credit report information with absolutely no strings or solicitations attached. Since 2005, you've been able to view your free credit report online. Depending on your age, you probably have credit reports from all 3 credit bureaus. Keep in mind that each credit report will be slightly different as each of the three agencies obtain their credit information independently. But no matter which reporting agency you read your credit report from you will be able to review your personal information, how you have handled your credit and whom you have credit with. Select information of public record will also be included in the report. One of the main benefits to visiting the website to obtain your free credit report information is that this information can be made available to you immediately through the internet. Other options for obtaining a free credit report will take a longer period of time.

2. Request by phone

If you would rather call to request your free credit report you can do so by calling (877) 322-8228. You will be asked a series of identifying questions to ensure that you are who you say you are and that you have a right to access the credit report that you are requesting (you can only request your own credit report, not the report of any relative including your children and spouse.

3. Complete and mail in a form

By going to the site: http://www.ftc.gov/bcp/conline/include/requestformfinal.pdf you can print out the appropriate hard copy free credit report request form and then mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. This form is provided to you by the Federal Trade Commission. If you would prefer to receive your free credit report from only a selection of the tree major credit bureaus you can also contact the major credit bureau of your choice directly by requesting your credit report in writing and sending that request as well as any required identifying information to (individual phone numbers have also been provided):

Equifax
P.O. Box 105873
Atlanta, GA 30348
http://www.equifax.com
(800) 685-1111

Experian (formerly TRW)
P.O. Box 2104
Allen, TX 75013-2104
http://www.experian.com
(888) 397-3742

Trans Union
Consumer Disclosure Center
P.O. Box 1000
Chester, PA 19022
http://www.transunion.com
(800) 916-8800 or (800) 888-4213

Some customers find it wise to request their free annual credit report from each credit reporting agency at different times of the year or four months in between each inquiry. They do this to ensure not only that every year each report is accurate but to make sure that adjustments are being made to at least one of the credit reports during the course of that year.

In any of the above cases for request of a free credit report, you will need to provide specific information, such as your name, current and previous addresses, telephone number, social security number, and date of birth. Also, to verify your identity, other information such as a copy of your driver's license, utility bill(s), or bank statement may be required.

Alternative methods to getting a credit report

You can probably think of a few other methods that you have heard of for getting a free credit report, but be warned that the term "free" can certainly come with strings attached if you use any other method but the three that have just been mentioned. Some credit reporting companies will offer a free credit report when you sign up for free credit monitoring protection for an annual fee. Other companies may have hidden charges and service fees that are made known to you only after you have requested to receive your credit report. You can take your chances with these alternative methods or simply play it safe by doing what the government has set in place for you to truly receive a cost free credit report.

Why would you want to get a free credit report?

Getting a free credit report is something that you would want to do for a variety of reasons. Some people are anticipating a need to apply for a loan and get their free credit report ahead of time to ensure that the information contained thereon is correct and so that they know what to expect when lenders present them with financing options. It is quite unpleasant to be surprised by something in your credit report that may be incorrect or that you simply are not expecting to be a factor in determining your eligibility for a loan. Taking care of these sorts of issues ahead of time will make you more prepared when it comes time to fill out that application because you will not have to deal with the delays associated with submitting correction notices to the credit reporting agencies or trying to fix a negative mark on your credit report.

Fair Credit Reporting Act

The United States Federal Trade Commission has recently (as of 2005) made it possible for any U.S. citizen to obtain a totally free credit report from each of the three big credit reporting agencies on an annual basis.  This right to obtain a totally free credit report is explained under the Fair Credit Reporting Act (FCRA).  The Fair Credit Reporting Act is defined as "an American federal law that regulates the collection, dissemination, and use of consumer credit information."  The FCRA forms the foundation for all other credit rights granted to the consumer in the United States.  To obtain the exact text from the Fair Credit Reporting Act from the Federal Trade Commission, you can visit their website at: http://www.ftc.gov/os/statutes/fcradoc.pdf  to read the PDF formatted version.

What to do if you discover errors on your free credit report

One of the main reasons why you want to make sure to take advantage of obtaining a free annual credit report form all three main credit reporting agencies, is to make sure that there are no errors on your credit report.  Having errors on your account can seriously jeopardize your chances of obtaining a loan or the interest rate that you are hoping for.  A poor interest rate can cost you thousands of dollars in additional interest on loans or could be the factor that prevents you from obtaining financing to buy a house or car you desire.

Although it would be nice to go back in time and erase financial mistakes that have been made or perhaps find some way of eliminating the bad marks on your credit report, there has yet to be found a legal method for erasing unflattering information from your credit report.  There are however ways to correct incorrect information and to restore your good credit standing in the case of misrepresentation due to errors.  Correct information is always legal. 

The process of correcting errors on your credit report is quite simple.  All that you must do is fill out a dispute form letter indicating the incorrect information and providing the correct information.  Make sure that you submit these corrections to each of the three credit reporting agencies as each agency obtains their information for their credit reports independently of each other.  The time it takes for the reporting agencies will vary but you can expect the longest amount of time that you may have to wait for the corrections to show up on your report to be about 45 days.