How to Get a Free Credit Report

According to the Fair Credit Reporting Act of 2004, all credit bureaus must provide free credit reports to all U.S. citizens at least once per year. Every American is entitled to receive free access to credit reports from the major credit bureaus once a year. The three major U.S. credit bureaus are Equifax, Experian, and Trans Union. You can contact the credit bureaus directly for your reports or online via www.annualcreditreport.com. This website will provide you with a credit report instantly after you file an online application. You must provide personal information such as your name, address, date of birth and social security number. This site is the only official government website that provides free online credit reports. Other websites claim to offer free access to credit reports, but without a credit score. If you want to know your credit score, you have to pay a fee. However, some legitimate websites do offer free credit reports per the FCRA regulations.

There are four sections to a credit report: personal identification information, public records, credit history and information regarding creditor inquiries. It also contains a person’s credit, or FICO score. FICO scores range from 200 to 850. The average credit score is around 650. A high credit score above 700 allows you to borrow money with a low interest rate and minimal restrictions. If your credit score is under 600, lenders consider you a risk, therefore lending you money at higher interest rates and more restrictions, such as a larger down payment. Credit scores are the most determining factor in loan approval. Other factors that financial institutions consider when reviewing a loan application are income and assets. It’s a good idea to review your credit report(s) regularly, as incorrect or outdated information can adversely affect your FICO score. If you find an error in your credit report, contact the credit bureau immediately to have it corrected.