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There are thousands of ads on TV, radio, and the Internet for everything having to do with credit. Some ads claim they can improve credit ratings, others promise to eliminate a poor ranking, and still others entice the viewer with assuring them of a free credit report.
The first thing to do is understand the
purpose of credit reports, where to find a legitimate free report, and how to
avoid the many credit report scams out there.
A credit report is a compilation of several different aspects of a consumer’s
financial life. It includes whether or not the consumer has ever been arrested,
sued, or filed bankruptcy. Other types of information included in credit reports
are the consumer’s residence and how the client pays their bills.
For example,
if the consumer pays online, by check, or by phone are included in the report.
History detailing payment records, large loans, and overextensions are part of
the report as well. Organizations who may run a credit report on a consumer
could be employers, mortgage companies, and insurance firms.
The safest way to check your personal credit report is to contact one of the
three national consumer reporting companies. Under the Fair and Accurate Credit
Transactions Act (FACT), every consumer in the U.S. has the right to request
their credit report from all three of these companies once a year free of
charge.
The companies required to comply under this act are Experian, TransUnion, and Equifax. The method a consumer may use to obtain their credit report is fairly simple.
The consumer can choose to request the report online, by phone, or by regular U.S. mail. If choosing to access the credit report online it is important to use annualcreditreport.com and in most cases the consumer can view their credit report immediately. The phone number to call to order a credit report is 1-877-322-8228.
The consumer can expect to receive their credit report in about 15 days using this method. Ordering by mail is probably the most time consuming method of the three.
The client must first print the appropriate form
from ftc.gov/credit and mail to Annual Credit Report Request Service, P.O. Box
105281, Atlanta, GA, 30348-5281. The report typically arrives 15 days after it
is received in Atlanta. Once the consumer has the report in hand they can then
monitor and check their credit report independently.
It is of vital importance when applying for a free credit report to use the
information listed above. There are many websites looking to steal personal
information by stating they will obtain the credit report for the consumer.
These fraudulent companies use the consumer’s private information for theft and can seriously damage their financial stability.
The legitimate companies will
ask for the consumer’s address, social security number, full name, and date of
birth. Obviously for their safety the client will want to be sure of whom they
are giving such sensitive information to.
Being informed about how the consumer’s credit report looks is incredibly
necessary. Many things ride on how high of a ranking an individual has.
Important purchases like a car or home often hinge on the credit report.
Luckily it is easy and safe to order the consumer’s credit report through the approved organizations. Keeping track of and checking a personal credit report is one of the most financially secure decisions a person can make.
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