Credit history of any individual contains plenty of financial information. It has information about your address, method of paying bills, whether you been sued or arrested, or filed for bankruptcy etc. These reports are required by creditors, employers, insurers or any other business where there is a need to evaluate your credit worthiness. Therefore accuracy of this report is very essential and FCRA (Federal Fair Credit Reporting Act) maintains the accuracy of this private information for everyone.
Why financial advisors suggest periodic review of your credit report
All the information provided in the credit report will be required when you need loan approval and to decide the amount of loan. Therefore it is necessary to have a credit report that reflects the correct information about you. Even when you buy property or car or insurance coverage or apply for a new job, your credit report will be accessed.
Therefore in order to protect the correctness of your credit report, it becomes necessary to have it guard well against identity theft. If your personal information like your name, social security number, or credit card number is hacked then the hackers can create a fraud on your behalf. They may open a new credit card in your name, use it and do not pay the bills. All this information gets reflected in your credit report even if you are innocent. This may debar you from obtaining any credit, job, or insurance.
How you can obtain free report
There are following nationwide credit reporting companies to whom you can approach once in a year for free report of your credit information.
- Trans Union
All the above agencies has their own website, mailing address and toll free number through which you can contact them and request them to send free credit report. You can also send them credit dispute letters that work.
You can either write to all three or any one of them to send the current credit report. As per rule you can get free credit scores from any of the above companies once in a period of a year.
In order to obtain a free credit report you will have provide the following information.
- Social Security number,
- date of birth
In case you have moved your residence within the last two years then send your old address too. Usually, these companies will make sure that you are the right person requesting credit report. They will ask certain private information about, which no one else is aware of. It is not necessary that all the three company will ask you same question, they may ask any relevant information, according to available data.
In which conditions can you attain credit scores for free?
- If any company denies your application for loan
- If insurance company denies to provide a coverage
- You are unemployed and looking for job
- Your report is inaccurate due to fraud, which you are not involved in
In other case you can obtain your credit report by paying certain fees.