If you have tried searching for a free credit report lately, you might have struck a number of sites offering credit reports for free, but only when you have signed up for a credit-monitoring service. From here you are able to get your credit report, but if you forget to unsubscribe to the service, or for some reason were unsuccessful when you tried to unsubscribe, you could end up paying a monthly service fee and the free report can quickly turn into a very expensive subscription.
Under the Fair Credit Reporting Act (FCRA), you are entitled to a free report, but only if you apply for one online. A few websites gives you access to “The Big Three” credits reports annually, free of charge.
The Big Three are the three nationwide, and most commonly used credit bureaus. These comprise of Equifax, Experian and TransUnion. Because these are the most widely used, the chances are higher that when a lender chooses to look up your details, they will get them from one or more of these sources.
The accuracy of the information provided by these credit bureaus is often inaccurate to some degree. This can be in a small way, or in a larger way, which affects your credit score. It is worth checking and updating your details with these agencies at least once a year to make sure that the records they maintain are correct. They rely on accurate information being given to them by the lenders and debt collectors that they have relationships with, and often this information is not up-to date.
There are smaller companies who also give out credit reports that are not part of the Big Three. If, for some reason you are turned down for credit, it is your right to find out which company provided the information, and you are entitled to a free copy of that report that contains information about you. This gives you the chance to correct information if it is wrong. It is best to do his within 60 days of your credit being disallowed.
By checking your information with the three main credit bureaus you can avoid mistakes costing you a higher interest rate, or meaning that you can’t get credit at all, because of inaccurate information collated by the Big Three credit bureaus.
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