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Use Your Annual Credit Report to Help You Stay Financially Healthy

Crimes like fraud and identity theft have become more common nowadays. Thus, it is in every consumer’s best interest to review his or her annual credit report to make sure that they have not been victimized. Or if they have, they can take the necessary steps as early as possible to rectify the situation and minimize the consequences. You’ve probably heard stories about how individuals have had their loan applications turned down because of erroneous information arising from fraud in their credit reports. Don’t let this happen to you if you can help it.

Getting an annual credit report is much easier nowadays because of the Fair and Accurate Credit Transactions Act (FACTA), an amendment to the Fair Credit Reporting Act. Under the law, consumers are entitled to one free copy of their credit report every twelve months. But if you’ve been a victim of fraud or if there is any inaccurate information in your credit report, you are allowed to receive another copy of the report, even after you’ve availed of your ‘freebie.’ There are also other situations which may make you eligible for additional free copies. These include when you are denied credit, if you are seeking employment, or if you are receiving public welfare assistance.

To facilitate the credit repair process, consumers are allowed to request a free copy of their credit report once a year (or more in some cases) from each of the three most well-known credit reporting agencies: TransUnion, Experian, and Equifax. Remember that although the credit reports from these three agencies may have small differences or discrepancies, it is not necessary for you to request a report from them simultaneously. They have established a single resource from which consumers can order their credit report to make things even easier.

Be on the alert for fraud by checking if the information in your credit report is accurate. The report normally contains data like personal information, your credit history, your public records, and entities who have requested a copy of your credit report within the last few several months. You should especially watch for data that say you opened an account and didn’t make payments, or credit accounts that look unfamiliar. The existence of such data in your report is a red flag that can indicate that you’ve been a victim of credit card fraud or identity theft. You should then take steps to remove this false information as part of your credit repair efforts.

An annual credit report is not something to be feared or dreaded. On the contrary, it is one of the most important tools in discovering anomalies in your credit standing as early as possible and preventing credit disasters for you in the long term. So be sure to check your credit reports regularly and make sure that the information they have on you is correct and accurate.