Nowadays it seems that every channel you tune into, there's a commercial for a different company offering you a free credit report. I don't know about you, but most of the time, when a for-profit company is advertising something, it's because there's a sale attached to it. There's no way the bean counters at any well-run company will keep green-lighting an advertising campaign if said campaign is not turning a profit. And why do all those companies act like they're looking out for our best interests by offering us a free credit report? What's in it for them?
Where does the truth lie (I know, wrong choice of words) when it comes to those free offers. It's true that with all the publicity that has been given to scams of all nature, people have grown increasingly wary of free offers. Yet if the ads keep airing it's because some people are still biting. Which begs the question: which of these offers (if any) are really free?
If you don't want to be bothered with a lengthy explanation, we can cut to the chase right now and tell you that only a select few of these offers are actually really, absolutely free. But if you have a little time on your hands (or have a curious mind), we can elaborate. By pointing out that not only are the vast majority of the free credit report offers out there NOT free, but also by telling you that there are fool-proof ways of distinguishing the free ones from the not-free ones.
Like we said previously, most of the credit report offers do carry a cost. Banks and other lending firms have been touting free credit reports for years now, but what they really are offering is a subscription service where you get to check your credit report any time you want. This service is managed either by them or is the result of a partnership with one of the three major credit bureaus, Equifax, Experian, and Transunion. There are more than 3 credit bureaus operating in the US, but those three are pretty much the only ones that count.
Because of the rise of identity theft, there has been a steep rise in the number of companies in the "identity protection" business. What they typically do is that they offer a "free" credit report, which is linked to a membership service. While the focus in the advertisements is on the free report, the fine print on most of these offers clearly states you are agreeing to subscribe to such a service, usually three months to a year at a time, that charges you a monthly fee. This fee, which can range from $6.95 to $19.95 per month, entitles you to a service that alerts you to suspicious activities, credit inquiries and late-payment notices on your account.
With the enactment of the Fair Credit Reporting Act (FCRA), the "big three" credit bureaus are each required by law to offer their customers a free credit report every year. They're not required to send it to you, though, so you have to actually ask for it. You can do so by mail, by phone, or over the Internet. Be sure you follow the instructions so you can get your free credit report, the one where you really don't have to pay a dime.
Here are some of the circumstances where a free credit report is legally available to you. 1) When a company denies your credit, insurance or employment application based on information that was in your credit report - you have 60 days from the occurrence to file your request. 2) You're unemployed and are planning to look for a job within 60 days. 3) You're on welfare. 4) Your believe your credit report contains errors and wish to review it.
In case you didn't know it, there's a tremendous amount of competition in the banking industry. In order to keep customers or bring in new ones, banks constantly have to improve their offerings. So some banks have been offering a free credit report, and some form of basic online service that allows you to view and monitor your credit score, when you do business with them, either by getting a credit card issued by them or opening up a bank account with them. Highly desirable (and equally selective) credit cards issuers, such as American Express, also offer their best consumers very competitive packages of services, with credit report access and monitoring almost always being included at no extra cost.
Some people only use credit sparingly. They have no need for continuous monitoring of their credit reports or anything like that. If that's you, all you need to do is to ask one credit bureau for a credit report every 4 months, just so you can check that your accounts are accurate and that you haven't fallen victim to identity theft. If you need more than that basic level of monitoring, then you can turn to the companies that offer such services in their package deals so that you don't have to pay extra for it.
With so many aspects of your life being impacted by your credit report (credit, insurance, employment), there's no need to stress the importance of monitoring your credit report. Should you spot any errors, you should definitely take action as soon as possible to correct them. And there's no reason why you shouldn't be on top of this: odds are, you won't even have to pay to get your credit reports. - 16492
Where does the truth lie (I know, wrong choice of words) when it comes to those free offers. It's true that with all the publicity that has been given to scams of all nature, people have grown increasingly wary of free offers. Yet if the ads keep airing it's because some people are still biting. Which begs the question: which of these offers (if any) are really free?
If you don't want to be bothered with a lengthy explanation, we can cut to the chase right now and tell you that only a select few of these offers are actually really, absolutely free. But if you have a little time on your hands (or have a curious mind), we can elaborate. By pointing out that not only are the vast majority of the free credit report offers out there NOT free, but also by telling you that there are fool-proof ways of distinguishing the free ones from the not-free ones.
Like we said previously, most of the credit report offers do carry a cost. Banks and other lending firms have been touting free credit reports for years now, but what they really are offering is a subscription service where you get to check your credit report any time you want. This service is managed either by them or is the result of a partnership with one of the three major credit bureaus, Equifax, Experian, and Transunion. There are more than 3 credit bureaus operating in the US, but those three are pretty much the only ones that count.
Because of the rise of identity theft, there has been a steep rise in the number of companies in the "identity protection" business. What they typically do is that they offer a "free" credit report, which is linked to a membership service. While the focus in the advertisements is on the free report, the fine print on most of these offers clearly states you are agreeing to subscribe to such a service, usually three months to a year at a time, that charges you a monthly fee. This fee, which can range from $6.95 to $19.95 per month, entitles you to a service that alerts you to suspicious activities, credit inquiries and late-payment notices on your account.
With the enactment of the Fair Credit Reporting Act (FCRA), the "big three" credit bureaus are each required by law to offer their customers a free credit report every year. They're not required to send it to you, though, so you have to actually ask for it. You can do so by mail, by phone, or over the Internet. Be sure you follow the instructions so you can get your free credit report, the one where you really don't have to pay a dime.
Here are some of the circumstances where a free credit report is legally available to you. 1) When a company denies your credit, insurance or employment application based on information that was in your credit report - you have 60 days from the occurrence to file your request. 2) You're unemployed and are planning to look for a job within 60 days. 3) You're on welfare. 4) Your believe your credit report contains errors and wish to review it.
In case you didn't know it, there's a tremendous amount of competition in the banking industry. In order to keep customers or bring in new ones, banks constantly have to improve their offerings. So some banks have been offering a free credit report, and some form of basic online service that allows you to view and monitor your credit score, when you do business with them, either by getting a credit card issued by them or opening up a bank account with them. Highly desirable (and equally selective) credit cards issuers, such as American Express, also offer their best consumers very competitive packages of services, with credit report access and monitoring almost always being included at no extra cost.
Some people only use credit sparingly. They have no need for continuous monitoring of their credit reports or anything like that. If that's you, all you need to do is to ask one credit bureau for a credit report every 4 months, just so you can check that your accounts are accurate and that you haven't fallen victim to identity theft. If you need more than that basic level of monitoring, then you can turn to the companies that offer such services in their package deals so that you don't have to pay extra for it.
With so many aspects of your life being impacted by your credit report (credit, insurance, employment), there's no need to stress the importance of monitoring your credit report. Should you spot any errors, you should definitely take action as soon as possible to correct them. And there's no reason why you shouldn't be on top of this: odds are, you won't even have to pay to get your credit reports. - 16492
About the Author:
We strongly suggest that people get a really free credit report with no trial, instead of paying for the service. For more of the same type of quality financial advice, feel free to drop by our personal finance blog.
