These days information about obtaining credit reports is readily available to everyone and all to often it is misleading information, especially in the world of the Internet. Unfortunately, some of this misinformation comes from credit reporting agencies, companies that make money by providing credit analysis. Plenty of other independent companies will also do it for you if you are willing to pay the fee.
If you are an American citizen (or resident) then you can get a copy of your credit report for free. Living in the United States entitles you to a free copy of your credit report under certain circumstances as provided for in two laws that were passed by the federal government.
The Federal Fair and Accurate Credit Transactions Act (FACTA) was passed in 2003 requiring that an official website be set up where people can request a free copy of your credit report. You can also mail your request or phone it in, FACTA also states that each person in the US is entitled to one free credit report every year. The website that was set up is AnnualCreditReport.com.
The second law passed is the Federal Fair Credit Reporting Act or FCRA. The law was passed in 1970 but has gone through several changes and amendments before reaching its current standing. This law outlines several other reasons for obtaining your credit report and require that it is available to you for free under these circum stances: If you believe your report includes fraudulent information, if you are unemployed or on public assistance, and if your credit score has kept you out of housing you can request a free copy of your credit report. Also you can request a copy if you have been denied credit or employment or any benefits from the government because of your credit score.
While these two laws may keep you from ever needing to pay a fee for your credit report, keep in mind that these free reports may not actually reflect your FICO score because of a different scoring formula. If you need to see your actual FICO score then be prepared for a minimal cost.
So many people do not understand the FACTA or FRCA laws. There are many businesses that are willing to scam those people, take their money, and do very little fore them. If you are careful, however, you can find a very helpful credit monitoring agency that will not only tell you of problems but will also advise you on ways to improve your score.
Some people do not have a need for these types of services, however when you are planning to apply for major loans in the future it pays to think ahead in terms of how your credit report looks. If you are trying to repair your credit a credit monitoring service can be a big help.
Wendy Polisi is the founder of CreditRepairCollege and Finance the Dream. Finance the Dream is the nations leading provider of rent to own homes,offering homes in all 50 states. For more information on credit repair please visit her at CreditRepairCollege.