Free Credit Report Online: What you should know

For those concerned about their credit, many have noticed the confusion regarding credit scores and credit reports.

First, be aware that your credit score is derived from your credit history which is found on your credit report. Since there are three main credit reporting agencies, you will likely have three separate credit scores reflecting differences between each agency: Experian, Equifax, and TransUnion.  This is why banks and other financial institutions will pull credit scores from each for a composite analysis.

Second, federal law entitles you to a free credit report (not score) once each year, from each agency.  Consider requesting your reports once a year from each agency separated by four months. For example, request your first report from Experian; then four months later, your second report from Equifax; and after another four months, your third report from TransUnion.  By following this guideline, you will have reports spread out over the year.  Please note that each report is, or should be, free.

And third, review your reports (all three) for errors; if found, call the agency and have them removed.  Doing so will have a positive, immediate impact on your credit score.  If you plan to obtain financing (or plan on refinancing), you should get all three credit scores.  Doing this could save you money on interest.

With regard to the cost of obtaining your credit score, there is a charge (it is not free).  It is possible to get a free credit score from a service you have subscribed to (like a credit tracking service).  Many do provide this, so it is worth checking into.  If you are considering joining a service, just be aware of the length of the trial period (generally 7 – 15 days).  Once the trial period is over, you will be charged monthly for the service until you cancel.

For those who have already applied for financing, you should request a copy of all three credit scores.  There should be no additional charge for this (whether accepted or not). As mentioned previously, it is good to know your scores before applying for credit (vs. after applying and it’s too late).

Free Credit Report Online

While it’s convenient to use a single source for your credit reports, this can sometimes lead to complications.  There is a possibility (and this has happened) that the single source provider could (in error) report that you have received all three reports when this might not be the case. If this happens, then it could be difficult to contact both the single provider and the agency affected to resolve this issue.  To avoid this, the following is suggested:

First, when contacting customer support and you are routed to an out-of-country line, you should request being rerouted to an in-country support service line.  This small suggestion could save you tremendous aggravation.

Understand that this problem generally occurs when a service, like Annual Credit Report, has informed the agencies (in error) that you have already received a free report.  Getting this corrected could be more difficult than correcting errors on your report since it requires contacting both the service and the affected agency.

Second, while on the phone with any of the three agencies, request to receive the credit report online.  This will help avoid unnecessary delay (with regular mail delivery), and the possibility that it could get lost.

And third, when contacting Equifax (which has a higher share of these problems), try to do so using a manned line (as opposed to an automated line).  As of Jan 2009, their manned contact number is: 888-265-8807.  Be aware that contacting any of the three agencies is best through a manned line if you want resolve issue quickly.