In 2003, the Fair and Accurate Credit Transactions Act (FACTA), an amendment of the Fair Credit Reporting Act, was passed in the United States, creating a central source which consumers can utilize to obtain a free credit report and rectify errors when they crop up. Under this law, all Americans are entitled to receive a free credit report once a year from three major credit-reporting bureaus namely Equifax, Experian, and TransUnion, which all operate independently.
The free credit report is an essential financial document which provides a detailed description of your personal information and financial status. It is a complete account of all your financial activities — from credit cards to your automobile or housing loans. It is one of the most important tools you can have and one of the first steps to attain control of your finances.
Checking your credit report yearly is a useful practice for you to be updated of your credit condition. It will help you keep abreast of your credit rating, past payment habits, outstanding debts, and your current credit score which will determine your credit eligibility and credibility. Moreover, it can help you see through any alterations and aberrations in your credit score so that when anomalies are discovered, you can immediately take action to correct them.
Now, you may wonder how you can get your free credit report. There are actually three ways to access them. You may visit www.annualcreditreport.com, the only online source authorized by FACTA to give consumers access to annual credit reports for free. This website is part of FACTA’s move to help combat the growing threat of identity theft and fraud. You can also call 877-322-8228. Lastly, you may request an Annual Credit Report Request brochure from Federal Trade Commission (FTC), fill up the form, and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA, 30348-5281. You will be able to get all three reports from the three major credit-reporting bureaus at one time. However, make certain that you order them from the FACTA-authorized agency, otherwise, other sources may bill you for the credit report, unless you fit to the following criteria: When you are on welfare; are looking for a job; or your credit report had been subjected to fraudulent acts.
So, what are you waiting for? Clear out all your financial worries! Grab your free credit now!
Writer: Ma. Catrina Rojo