Get Your Credit Report: Free vs. Fee
Debbie WilsonLoanBiz Columnist
By law, you're entitled to one free copy of your credit report
annually. But that doesn't mean all credit services are alike. Log on to the
wrong one and you may wind up paying for costly credit services that you should
receive for free.
Free Credit Reports
There are three big credit bureaus that offer annual credit
reports at no cost to you - Equifax, Experian, and TransUnion. These bureaus
will honor their credit obligation. You can access and order free credit
reports from all three by logging onto Annualcreditreport.com. But be careful.
There are a multitude of sites with similar-sounding names that lure you in
with credit promises, only to push fee-based services for profit.
Credit Services
What are fee-based credit services and are they worth the
cost? Typical services include credit report copies, identity theft insurance,
and credit monitoring. They can cost an average of $10-$30 per month. If you're
not diligent about protecting and reviewing your credit and credit reports on a
regular basis, such a service might be worth the price. But with a little periodic
attention, you can use free credit reports to perform the same monthly
check-ups on your own.
Credit Review
Since you're entitled to one free credit report from each of
the three bureaus, request a copy from a different bureau every four months. Look
for mistakes that can affect your credit score, as well as evidence of identity
theft. A recent study by the U.S. PIRG (Federation of State Public Interest
Research Group) found 25% of credit reports contained serious errors. If you
find such an error, it's up to you to contact the bureau and clear it up.
Don't get caught with poor or inaccurate credit. It just may
hurt you when you need it most.
www.annualcreditrpt.com
About the Author
Debbie Wilson owns and operates a lakeside resort. Her previous experience includes profitability consulting for a national healthcare company. Debbie holds a B.A. in Business Management with a minor in Physical Education.
