Free Credit Report: Learning About Your Credit

Why should you check your credit report? How often should you check it, and what should you look for? Do you need to subscribe to a credit monitoring service? Here are some tips for accessing and reviewing your credit report.

Your Credit Report and Credit Score

The three major credit bureaus (also called repositories) are Experian, TransUnion, and Equifax. The Fair Credit Reporting Act (FCRA) provides for free access to credit reporting on an annual basis. You can order a free credit report from each agency here . It's a good idea to review your credit reports at least once a year, and more frequently if you've found errors or have been a victim of identity theft.

If you're working on improving your credit, or plan to apply for credit, you'll also want to know your credit score. Although you can get free annual credit reports, there is a small fee for your credit scores. Credit scores can vary between credit bureaus; by checking all three scores you'll have an idea of your overall credit standing.

Credit reporting: What you Need to Know

Your credit scores are influenced by the number of credit accounts you have, how much you owe on each account, and your payment history. Credit reporting firms update this information monthly. When you consider the volume of data handled by credit bureaus, it's not surprising that errors occur. Typical errors can include:

• Incorrect payment information: You have the right to dispute derogatory items in your credit report. Review your accounts carefully to verify that payments are credited properly. Late and missing payments lower your credit score.
• Inaccurate account information: If you're working on improving your credit, verify that any accounts discharged through a bankruptcy have been closed. Otherwise, the accounts may continue to show negative payment or charge off information after your bankruptcy has been completed.
• Incorrect reporting: Read each credit report carefully to make sure that there are no incorrect accounts reported. People with common names may find they've been confused with someone else with a similar name.
• Identity theft: Keep track of your credit spending and match receipts to your statements each month. If there are discrepancies, notify your credit card company immediately.

For most consumers, checking an annual credit report is sufficient, but if you need to monitor your credit reports more frequently, you can register with companies that provide additional access to updated credit reporting information.

Sources:

• Annual Credit Report Website
• Federal Trade Commission: Your Access to Free Credit Reports

About the Author:
Karen Lawson started writing stories about birds and surfing at an early age. For more than ten years, she enjoyed a productive corporate career in mortgage banking before moving to Reno, Nevada in 1997. Karen earned BA and MA degrees in English (specializing in writing) at the University of Nevada. Significant areas of research and writing include truth and ethics in creative nonfiction, medical humanities, and the symbolism and lore of birds in American literature and culture. Karen has taught English at a community college, is writing a collection of poetry, and enjoys birdwatching and walking her basset hounds.