Almost all lenders use credit scores and credit reports to quickly identify if a person is credit worthy or not. Most American consumers need loans at some point of their life. If somebody will get loan or not depends mostly on credit history and credit scores. Credit scores are based on information on the credit reports. This is why it is important that your credit report is free of errors and wrong information.
It is recommended that you check your credit report at least two times a year. Getting your credit report can be expensive. However, you can now get credit reports free of charge from different sources. Here are some ways how you can get free credit report:
- Annualcreditreport.com: If requested by consumers, the three major credit reporting agencies – Equifax, Experian and TransUnion are required to provide one free copy of credit report each year. This is a federal law. You can get your free report at annualcreditreport.com. We recommend that you get the three free reports one at a time with a four months gap. This way you can review your credit report once in every four months.
- Directly from credit reporting agency: If your credit application is disapproved based on the information of your credit report, the creditor is required to send you a letter indicating the cause of disapproval. This letter includes the name of the credit reporting company. You can write to this company with a copy of the letter to get a free copy of your credit report. You must do this within 60 days from the date of the letter you received.
- Your bank: Some banks provide free credit reports to their customers. Ask your bank if you can get a free credit report.
You should review your credit reports from time to time and take appropriate steps to correct errors if there are any. Remember, there are other online companies who provide free credit reports. You should be careful when you share personal information online. You share personal information only with reputed online companies. If you are not sure, ask your bank or your financial adviser.