A Free Annual Credit Report – A Perk to Take Advantage Of
It is not often that a truly useful new freebie comes along from the government, but the new law which entitles all Americans to a free annual copy of their credit report is one of the most useful laws to come along in a long time.
There are many financial documents in the average consumer’s life, but few are as important and as influential as the credit report. The information in your credit report is carefully scrutinized every time you apply for a loan, and it is used for a number of other reasons as well.
For instance, did you know that the rate you pay on automobile insurance can be greatly influenced by the information in your credit history? Many people are unaware of this link, but the fact is many insurance companies regularly examine the information in a credit report to determine the rates on car insurance. Research done by car insurance companies has shown a link between creditworthiness and accident rates, and that is why credit information is used in insurance rates.
Since the credit report is such an important document, it makes sense to scrutinize your own credit report at least once per year. In addition, it is a good idea to review your credit report prior to applying for a loan, and especially before applying for a mortgage.
Fortunately, the new law makes it easier than ever for every American to obtain a copy of his or her own credit report at no cost. Everyone is entitled to review one copy of this important document every year. It all starts at the website:
http://www.annualcreditreport.com
From this website, it is easy to obtain a copy of your credit report from all three credit reporting agencies - Experian, TransUnion and Equifax. The annual credit report website links to each of these agencies quickly and easily, and at each step the consumer has the option to return to the annual credit report web site.
When reviewing your credit reports it is a good idea to print a copy of each report to review at your leisure. While the user friendly website makes it easy to review the information online, most consumers will want to take the time to scrutinize each report for mistakes.
The fact is that many credit reports do contain errors, ranging from relatively minor ones like closed credit card accounts that still appear as open, to major ones, like erroneous late payment or missed payment notices. If you do notice anything amiss in any of your credit reports, be sure to contact the credit reporting agency immediately and ask that the report be corrected. Also be sure to follow up in a few months to be sure that the errors you reported have been corrected.
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