2 Is Signing Up for Your Free Credit Report Really Free?

Introduction

You’ve seen the commercials with good looking young men in various scenarios – on the beach, in an airport lounge, riding around in a fancy car – singing about how getting your free credit report can prevent financial problems and allow you to live the good life. But are the credit reports offered by these services really free? Unless you’re careful about where you go to request your credit report, you may be in for an unpleasant surprise when you’re asked to pay for it.

(Not So) Free Credit Reports

Several commercial services claim to offer not only free credit reports, but free credit scores as well. What they don’t tell you is that you may have to sign up for other services along with your credit report or credit score. Or you may have to sign up for a trial membership in a credit guard service or some other service only marginally related to obtaining your credit score. If a website or service requires a credit card number before you can obtain your credit report, be skeptical and read the fine print.

Really Free Credit Reports

According to federal law, each individual is entitled to one free credit report each year from each of the three major credit reporting agencies: Experian, Equifax and TransUnion. In addition, if you are turned down for credit based on a report from a credit

reporting agency, you are entitled to a copy of the credit report used by the merchant or lending institution that denied your credit application.

Obtaining you own credit report is considered a “soft” credit pull, which means that it does not have a negative effect on your credit score. However, to be sure that you are actually receiving a free credit report, you must request your free credit report through the website established by the Federal Trade Commission, annualcreditreport.com.

Credit Reports Versus Credit Scores

There is a difference between your credit report and your credit score. Your credit score is a numerical representation of your credit standing. Credit scores were first introduced by the Fair Isaac Corporation, which still issues credit scores under the name FICO scores. However, each of the credit reporting bureaus also issues their own credit scores.

Unlike credit reports, credit scores are seldom free, although you may receive a credit score as part of trial offer for other services, as described earlier. One ad-supported website also reports credit scores at no charge and without requiring a credit card number

For Further Reading

 AnnualCreditReport.com: Frequently Asked Questions
annualcreditreport.com/cra/helpfaq

 Credit Karma: Frequently Asked Questions
creditkarma.com/about/faq

 Free Annual Credit Reports
ftc.gov/bcp/edu/microsites/freereports/index.shtml

 What’s In Your Credit Report
myfico.com/CreditEducation/InYourReport.aspx

 What’s In Your FICO Score
myfico.com/CreditEducation/WhatsInYourScore.aspx

 What’s Not In Your FICO Score
myfico.com/CreditEducation/WhatsNotInYourScore.aspx

 Your Rights: Credit Reporting
ftc.gov/bcp/menus/consumer/credit/rights.shtm

Author Bio:

Hayley Spencer contributed this guest post on behalf of EasyFinance.com – Hayley is a freelance writer with an extensive background in financial services. Get your credit report by visiting their website www.easyfinance.com/credit-score/.