QuickOverview

Your credit is one of the most important areas of your life. Checking your credit history will not only allow you to see where you stand with potential lenders and creditors, it also enables you to see if you have been the victim of identity theft. Oftentimes, the only way that consumers realize that they have had their identities stolen is by checking their credit history.

It is possible to check your credit history yourself, without the aid of a bank lender or another professional. In fact, the Federal Trade Commission just passed a law in 2004 that allows all United State citizens to get one free credit report from all three consumer credit reporting agencies per year. Before this law was passed, the credit reporting agencies charged consumers for each credit report they requested. Now is the perfect time to check your credit history!

It is certainly possible to order the reports directly from the credit reporting agencies and other online sources, but why would you pay when you can get the reports for free?

The three main consumer credit reporting agencies and their reports.

There are three consumer credit reporting agencies: Equifax, Experian, and Trans Union. Each record and produce similar credit histories for individuals, although different agencies track different accounts. For example, if you have a bill that goes to collections, you may not see that particular account listed on a credit report from Equifax, but it will be on the Trans Union credit report.

Overall, Experian and Equifax offer easy to understand credit report summaries. Trans Union is a little more complex, yet still not impossible to read.

What am I looking for on the credit histories?

Ideally, on all three credit history reports, you will see your current and past accounts for the past seven to ten years. Any accounts that have been reported as unpaid or in collections will appear as well. Loans in good standing, either paid off or in progress - such as auto loans, student loans, and home mortgages, will be listed.

It is important that you review each listing to make sure it is accurate. If an account is noted as unpaid or past due and you have honestly paid it, you will need to contact the credit reporting agency and correct the error. Expect for this to take months, but it will eventually be corrected.

If you have filed for bankruptcy, this will be noted on the credit report. If you have been arrested or sued (especially by creditors), this will be visible on the reports.

You will also find previous employers, previous addresses, any names you have used in the past, and your spouse's name if you are married. Your telephone numbers will be listed on the report. Should you find that your addresses, previous names, current name, or telephone numbers listed are incorrect, you can get those corrected through the reporting agency.

A security feature used by the three credit reporting agencies involves your social security number. You will see three social security numbers listed; one of them will be correct. The others are fakes to make it more difficult for someone who intercepts the reports to steal your identity.

The credit histories that you receive will also let you know who has been checking out your credit. If you have applied for credit cards, moved into a new apartment with a credit check, or applied for a loan, the inquiry will be noted. Insurance agencies and some utility providers check credit reports before starting a new account in your name. Too many inquiries in a short amount of time is not necessarily a good sign; lenders may see that you are applying for additional credit and consider you a risk for a new loan.

How to obtain the free copy of your credit history from the three main agencies

Equifax, Experian, and Trans Union have joined up to offer one main location on the Internet and in a physical location to issue your free annual credit reports. In order to make the consumer's ordering process smoother, there is an order in which residents of states can request their credit reports. This is known as the "regional roll-out", and it basically prevents a free-for-all on phone lines and bandwidth for the agencies.

Those living on the West Coast can begin ordering their free credit reports on December 1, 2004. This includes the states of Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.

Next in the regional roll-out are the Midwestern states. Starting March 1, 2005, consumers in Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin can request their free credit reports.

The Southern states come third in the regional roll-out, including Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas. Consumers in these states can begin ordering their free credit reports starting on June 1, 2005.

Finally, those living in the Eastern states and all other U.S. Territories can order their credit reports beginning September 1, 2005. In fact, any one in any state can order the report after this date. The Eastern states and U.S. Territories include: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, District of Columbia, Puerto Rico, and other U.S. Territories.

How do I order the free credit reports?

If you prefer to order your free credit reports on the Internet via an ultra-secure web site, visit www.annualcreditreport.com. This is the only place to order the credit reports for free. The instructions are very easy to understand, and the process takes about 20 minutes to receive all three reports. You can save them and print them free out for 30-days.

If you prefer to order the free credit reports by telephone, you can call the Annual Credit Report Request Service toll free at 1- 877-322-8228. This is the only telephone number to request the reports for free.

Lastly, you can order your free reports through Postal mail. You will need to print out and complete an Annual Free Credit Report Request Form, available at the web site listed above. The Federal Trade Commission also has a link to print it out: www.ftc.gov/credit. You can request the form to be mailed to you by calling the toll free number at headquarters. Once you have the form completed, return it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

I have to stress that you cannot get your free credit reports by contacting Experian, Equifax, or Trans Union. The only way to get the free copies is by using one of the methods listed above.

What is my credit score?

Equifax, Experian, and Trans Union will provide you with your credit report, but it is basically up to you to score it. While this is not an easy task for many, and it does leave some wiggle room for interpretations, it is easier and safer to ask the credit reporting agencies to do it for you.

If you order the reports on the Internet through the main web site, each reporting agency will give you your credit score for approximately $5. This is a small fee for receiving a credit score directly from the source, so I'd recommend paying for it.

By Devon McCollum

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