How to get a free credit report

Learn how to get a credit report. There's both paid and free credit reports options on the web, and we'll guide you to what best matches your needs.

Whether you are buying a car, a house, requesting insurance or establishing a line of credit, chances are you (and the businesses you patronize) want to know about your credit history. What exactly is on your credit report and how do you find out? By glancing online, it is apparent that there is a lively industry in credit reports and credit reporting.

There are catchy tunes in television commercials that advertise free credit reports. There are countless websites devoted to the Free Credit Report. These businesses make their money selling credit reports to individuals who do not have the most up to date information regarding free credit reports.

A credit report is a basic financial principal that all individuals should take the time to learn. Parents and teachers should take the time to tell their kids what a credit report is, how to find it, and why it is an important part of anyone's financial future.

There are three agencies that collect data on financial transactions and your payment history. Experian, TransUnion, and Equifax are the agencies responsible for giving a consumer their rating based on how much credit they have, how many times they have applied for credit, and of course, payment history—negative or positive.

According to the Federal Trade Commission who authored the Fair Credit Reporting Act, every one has the right to have a free copy of their credit report every twelve months. Consumers can choose to get all three reports at one time. Or, they can wait and monitor their credit activity throughout the year.

Consumers do not have to pay fees, sign up for enewsletters, jump through hoops, or be otherwise harassed when requesting their credit report (free means free). Congressional findings, from the Fair Credit Reporting Act, include the following basic sentiments:

1. Inaccurate reporting hurts the banking system
2. credit reporting IS like rocket science (or “an elaborate mechanism”)
3. reporting agencies play an important role
4. fairness and rights to privacy are key necessities for these agencies.

Another business that has sprung to the forefront of this industry is identity theft. Credit card companies and other businesses want to charge you fees to prevent identity theft. The simple fact is that the consumer can do this absolutely free of charge by contacting the Annual Credit Report Request Service online or through their toll free number. Vigilant consumers can save by using this service to monitor their own credit history and not rely on a third party unless absolutely necessary.

Disputing items on your credit report can be done by contacting the agency that has sent you the report (one of the three listed above.) In summary, your free credit report is a vital part of your financial future. Maintaining good credit will have bearing on the decisions you are able to make about housing, transportation, travel, and basic necessities. Do not be drawn in by a third party requesting a 'fee' to get something that is available for free. Resist the urge to allow someone else to be the watchdog, when with a little bit of research, you can take charge of your important, financial future.