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Free
Credit Reports...
Did you know that Federal
law has been passed that allows Americans
such as yourself to have access to their credit reports?
Well, if you aren't already aware of this, then here's good news for
you. Before you take on any loan, be sure to have checked your credit
report at least once
during a year to make sure it's clear of any discrepancies. While
checking your credit report is not going to prevent ID theft, they let
you review and question whether something is either in error or
fraudulent which is after the fact.
You are entitled to a Free Credit Report
once a year. It's the law!
To get your credit report, there are several ways available. Consumers
can also call a toll-free number, 1-877-322-8228, to get their report,
or they can send for it via snail mail.
Consumers can also go to the website operated by the three credit
bureaus -- Equifax, Experian and Trans Union, AnnualCreditReport.com.
This site has been ready since late 2004 and is monitored by the
Federal Trade Commission.
Other Credit Reports News:
The FreeCreditReport.com settlement
In August, Experian settled charges with the Federal Trade Commission
that it misled consumers with its FreeCreditReport.com site, which
sells credit monitoring services. While the firm admitted no
wrongdoing, it agreed to refund some consumers and pay a $950,000 fine.
The settlement also included Experian's similar Web site,
ConsumerInfo.com.
Probably the biggest glitch has been the site's name. While there's
only one place for consumers to get their Congressionally-mandated free
credit report -- AnnualCreditReport.com -- there are over 100 Web sites
with similar-sounding names. Most attempt to sell consumers
subscription services that offer repeated peeks at their credit report.
Norma Garcia, a spokeswoman for Consumers Union, said the three credit
bureaus who sell reports may have confused consumers by offering
services with similar names, hampering efforts to get attention for
AnnualCreditReport.com. "The bureaus have done a good job of capturing
consumers wandering around trying to find their free credit report,"
she said. "But they ...haven't done a good job of educating consumers."
Not getting the whole story?
Consumers have criticized the reports because they don't necessarily
match the information the credit bureaus share with lenders when a
consumer applies for a loan. Lenders can ask for all credit accounts
tied to a Social Security number, for example, while consumers cannot.
So if someone else applies for credit using your number, a lender may
know about that, but you never will.
In a report filed to Congress by the Federal Trade Commission in
December 2004, the agency found that about 4 percent of the time,
credit report inquires at one bureau matched more than one file -- the
bureau provided these secondary reports to lenders on request, but
would not provide them to consumers. The FTC report does not identify
the bureau.
The credit bureaus sometimes refer to these secondary files as
sub-files. All three credit bureaus sell specialized services with
names like "Social Search," that track the entire history of a Social
Security number. The services are not available to consumers.
But there is a critical piece of information consumers won't see on
their credit reports -- their credit score, which is the three-digit
number most lenders use to determine if they'll give out a loan, and
how much interest they'll charge. In many ways, the credit score is
more important than the credit report. And that still costs money. In
fact, the bureaus advertise paid credit scores on their free credit
report Web site.
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