Free Credit Check Report

Thanks to congress, you have the right to request a free credit check report each year. It's a good idea to check your credit reports from all three major credit bureaus at least once a year. Even if you are not planning on making any credit purchases anytime soon, you want to make sure that your credit reports don't have any inaccurate information. Their are other companies that may consider your credit rating like a new employer, insurance companies, or even current credit card companies.

Your credit report may have an impact on many different areas and it never hurts to keep an eye on all three credit bureaus information about you and your credit history. Basic information like your current address, creditors, and current status on any credit transactions can be a factor in how much your insurance costs, whether some companies will require a deposit, or be considered in any new job application.

In 2003 congress passed a law that provided for any consumer to get one free credit report each year from the three major credit bureaus. Experian, TransUnion, and Equafax all have to provide this free credit report. This doesn't include a credit score but just the current credit information each credit bureau has under your name. You can purchase the actual credit score for a charge, usually for around $6-$12.

These free credit check reports are just like the ones that you would normally pay for but not necessarily identical to the ones that are received by any company to judge your credit worthiness on any given transaction. But you will never see the actual credit report to creditors unless they show you anyway. The rating information is far more detailed and different for a creditor due to the ranking information that the credit bureaus do not provide to consumers. That's the "secret sauce" that the credit bureaus use to judge risk and is not for public consumption since many would take advantage and game the system.

For the most part, reading a free credit check report is pretty straight forward and anyone can figure it out in a few minutes. Each report may look a little different in layout but all have the same type of information. Which brings up another point in any credit report. Since all three credit bureaus may receive information from different sources, the three credit reports will not normally match in regard to the number of creditors, history, and transactions. Some entries will be on all three but some also might just be on 1 or 2 credit reports.

Each free credit check report has sections on your personal information like full name, addresses (current and past), employment, or anything else that might be reported to the credit bureau by different sources. You will also have a section on any current credit obligations and payment history and status. Then there will be a section on completed transactions and their history. There will also be negative or positive items in each one of the sections, number of credit inquires and by whom, and any comments by you.

There should also be a section about how to file a dispute about any incorrect information. Even if it's just an address correction, you should always make sure all information is accurate and certainly dispute any incorrect derogatory information. Negative information like late payments, missed payments, failure to pay at all, or other negative items can have a very serious impact on your credit score. And make sure you follow any instructions exactly or it will just stretch out the time necessary to correct the information.

There is no reason not to get your free credit check report each year. It's better to stay on top of any possible problems than to pay the price in higher insurance costs or deposits on service businesses. These credit reports are free and can help you insure that all the information is current and accurate.

If you would like to learn more about each of the three major credit bureau crdit reports, click on one of the links below that detail each company and their credit reports: