Start the new year
knowing your credit is in good standing and your credit report is accurate.
Under the Fair Credit Reporting Act, consumers can receive a free copy of their
credit report from each of the three nationwide reporting agencies — Experian, Equifax
and TransUnion — every 12 months.
“Pulling your credit
report annually is a smart way for consumers to understand their financial
health, as well as avoid financial and identity fraud,” said Michele Mason,
president and CEO of Better Business Bureau serving North Alabama.
Many television
advertisements and websites claim to offer “free credit reports,” “free credit
scores” or “free credit monitoring.” However, the BBB reminds consumers that AnnualCreditReport.com is the only authorized
source for free annual credit reports under federal law.
Additionally, BBB
reminds consumers that a credit report is different than a credit score. A
credit report is a snapshot of your credit use history which gives a lender a
view of whether you pay your debts back or not. Your credit score is a number
which shows lenders how much of a risk you are in paying back a debt.
BBB offers these tips
for pulling your annual credit report:
· Do not access
the Annual Credit Report Request Service through links from unfamiliar
websites. If you get an e-mail or see a pop-up ad claiming it’s from
AnnualCreditReport.com or any of the three nationwide consumer reporting
companies, do not reply or click on any link in the message. To help ensure the
privacy and protection of your personal information, go to AnnualCreditReport.com directly to request your
free annual credit report either by secure website, phone or email.
AnnualCreditReport.com will not approach consumers via email, telemarketing or
direct mail solicitations.
· Consider pulling
your reports quarterly. While you can pull all three credit reports at
once, you can also consider pulling your credit reports quarterly. Pulling your
reports separately allows you to better monitor your reports and keep track of
any changes or new information that may appear on your credit report. If you
pull all your reports at once, you won’t be eligible to pull your report for
another 12 months.
· Pull your
child’s credit report. As child identity theft remains a national problem,
it can be just as imperative to pull your child’s report as it is to pull your
own. While the credit reporting agencies do not knowingly maintain credit files
on minor children, you can contact the credit reporting agencies directly and
they can run the report.
· Avoid companies
that claim they can improve your credit for free. The Federal Trade
Commission cautions consumers to be wary of companies that make claims
regarding credit repair. These companies, commonly called credit clinics, don't
do anything for consumers that consumers cannot do for themselves at little or
no cost. Beware of any organization that offers to create a new identity and
credit file for you. For more information on credit clinics and a list of
warning signs visit www.ftc.gov.
· Dispute
inaccuracies on your credit report. Inaccurate, derogatory information can
lower your credit score and may indicate possible fraudulent activity. If you
find information that you believe is inaccurate, you have the right to dispute
it free of charge. Go directly through the reporting agency you pulled your
report from to file your dispute.