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.
There are two federal laws that provide for free credit reports for American citizens and residents. That means if you are living in the United States then you can access your credit report for free.
In 2003 congress passed the Federal Fair and Accurate Credit Transactions Act (FACTA). In essence what this law says is that every person in the US is entitled to a free copy of their credit report every year. FACTA also required the creation of an official website to make it easier to request and obtain a free copy of your credit report. You can also phone or mail your request for a free credit report. Go to AnnualCreditReport.com to request yours.
The second law was originally passed in 1970. The Federal Fair Credit Reporting Act or FCRA has seen many amendments and changes before becoming what it is today: a clear list of reasons for people to obtain a free credit report. These reasons include being denied credit or a government benefit, being denied housing because of a credit score, and if you think there is fraudulent information on your report. You can also request a free copy if you are unemployed or on public assistance.
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.
Too many people are unaware of how to obtain a free credit report that many businesses have sprung up offering to do that, but are scamming their customers. In spite of this there are valid and useful credit monitoring agencies that will review your credit file monthly or quarterly and advise you of any problems and also ways to improve your score.
If your credit is perfect and you dont plan to apply for credit, you may have no need for such a service. However, if you would like to optimize your score in advance of applying for a major loan or are working on credit repair, these services may be useful.
Wendy Polisi is the founder of CreditRepairCollege and Finance the Dream. Finance the Dream is the nations leading provider of lease option homes,offering homes in all 50 states. For more information on fast credit repair please visit her at CreditRepairCollege.