Top 5 Things to know about a Free Annual Credit Report

Monitoring your credit report is the first step to improve your credit score. In order to do the same, you need to have a copy of your report with you. In fact, you do not even have to spend money to get a copy of your credit report from the three main credit rating bureaus in the US.

• Fair and Accurate Credit Transactions Act

 This is because of the Fair and Accurate Credit Transactions Act that is more popularly known as the FACT Act and mandates each of the three credit bureaus to offer a Free Annual Credit Report to the consumer every year. Thus, you can get a free annual credit report from all three agencies namely Experian, Equifax and TransUnion every year. This Act became a law in the year 2003 following an amendment to the Fair Credit Reporting Act (FCRA).

• How to obtain Free Annual Credit Report

 In order to get your copy of Free Annual Credit Report, you need to log on to AnnualCreditReport.com. The government has mandated this official site for distribution of free copies of credit report on an annual basis. As soon you log on to the site, you will find the simple to follow instructions that will direct you about the process of getting your copy of free credit report. A few clicks are all it will take and you can get your copy in less than a few minutes from AnnualCreditReport.com.

• You need to request free credit reports

 None of the credit rating bureaus will send a copy of free annual credit report on their own and you need to request for them. Though you can request a copy from all three agencies at the same time, it is highly recommended to request a copy from the three agencies at three different times of the year.

• Importance of getting Free Annual Credit Report

 By getting your credit report and analyzing the information provided in it, you will be in a much better state to judge your own credibility before applying for a loan. Moreover, you can even identify if there are any negative entries on your report that have expired and hence should be removed to improve your FICO score. Additionally, you can track any misreporting or erroneous information and dispute the same with the rating bureau.

Reliable sources

You can get a copy of your free report from AnnualCreditReport.com or by going on the official websites of the three credit rating bureaus.