How to Build Credit

How to Repair and Increase Your Credit Score


Annual Free Credit Report

Did you know that you have a legal right to access an annual free credit report? Under the Fair Credit Reporting Act (FCRA), each consumer reporting company nationwide is required to provide you with a free copy every 12 months if requested.

The major companies you can request an annual free credit report from are Equifax, Experian and TransUnion. The FCRA also entitles that your credit report remain accurate and private in the nation’s consumer reporting files and databases. To make sure that consumer reporting companies stay in line, the Federal Trade Commission (FTC) enforces the laws that accompany FCRA.

The reason why keeping your credit report private is such a priority and backed by laws is because this report holds a lot of information: where you live, how you pay your bills, if you have been involved in a law suit, if you have been arrested, or even filed for bankruptcy.

Your information is basically sold to creditors, insurers, employers, and other businesses that use a credit score by these nationwide consumer reporting companies. So when you try to apply for a credit card, try to rent a home, or intend to get a loan, you can expect the company you are applying with will have your credit information.

You may wonder how you can obtain your annual free credit report. The three nationwide consumer reporting companies have established a website, a toll-free telephone number, and a mailing address so that you can request your annual free credit report.

If you want to make the request online, visit annualcreditreport.com. If you are ordering your free credit report by phone, call 1-888-322-8228. Or you can complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Georgia 30348-5281.

It is easier to request your annual free credit report online but if you choose the mailing option, you can find the form needed at http://www.ftc.gov/bcp/conline/edcams/credit. Because the three nationwide consumer reporting companies have established one location to get your annual free credit report, do not contact one of the companies individually.

By going through annualcreditreport.com you can order three different reports from each company at the same time, or you can do it one at a time. You can order one free copy of your credit report every 12 months from each company.

Please be careful not to use any other website stating to get you your annual free credit report. It is most likely an imposter website trying to gain you information. They are not part of the legally mandated free annual credit report program.


Quick Tip #1 - Be Smart With Credit

Don't purposely put yourself into debt just to build your credit score. It is better to be debt free and have no credit than to go and get a bunch of debt to have a score.


Quick Tip #2 - Bad Credit is Worse Than No Credit

If you want to build credit make sure to do it responsibly. Having a bunch of credit cards and getting behind will make your credit worse than never having a credit card at all.



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