Are You Eligible For Free Credit Reports?

So you want to access free credit reports in an effort to help improve your credit score? Consider getting your free credit reports through one of the three national credit-reporting agencies or through the Federal government. According to the Fair Credit Reporting Act or FCRA a free credit report is your right and several states have their own laws regarding this.

In a recent amendment to the FCRA each of the three national credit-reporting agencies (Experian, Equifax and TransUnion) must provide free copies of credit reports to each consumer in the United States every twelve months. This law has already been started in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming. In addition, the state law in Colorado, Maryland, Massachusetts, New Jersey and Vermont entitle individuals to one free credit report each year from the major credit-reporting agencies.

Free credit reports are very important documents. Not only are they free, but they give you access to large amounts of information about your credit status. A typical credit report will include your credit rating which determines your credit score. When you get your credit report you can also get your credit score. This is a numerical depiction of your creditworthiness using criteria established by the leading consumer credit scoring companies. This number can help you understand how lenders view your current credit standing. It will also help you to see factors that are affecting your credit score so you know how you can improve your credit history.

If you find that your credit rating is low and your free credit reports show some bad history then don’t lose hope. The credit-reporting agencies will give you some helpful tips and suggestions that will get you on your way to improving your credit score. If you find any error in your credit report then you can contact the credit-reporting agency to get it corrected. Many are able to eliminate negative marks from their free credit reports just by disputing credit records.

Once you receive your free credit reports that are a few things you need to check for errors. First make sure your personal information is right. Free credit reports can easily get mixed up with a simple spelling error on the first name, a wrong address or a wrong employer. After this make sure your marital status is correct. Make sure no closed accounts are listed on your credit history. Even in separate sections of the report no account should be listed twice. Any information on late payments should be detailed properly. Make sure any previous corrections don’t still appear as errors in your credit history.

Free credit reports are important and useful documents. Just be aware that each credit-reporting agency keeps its own files on consumers and each report you get will often be different from that of another company. Businesses, employers and lenders can check your credit report from any of the three major credit-reporting agencies. So when you need to review your credit files be sure to review all three agencies to make sure everything is correct and in good order.