"Free" Credit Reports Can Cost You....
TIPS FOR SAVVY CREDIT REPORT SHOPPING
By Emily Davidson
TrueCredit
Considering a convertible? Visualizing a vacation? Student loan officer getting surly? Understanding your credit history is crucial if you are planning a big purchase or need to better manage your debt.
Ordering a credit report online is a simple way to watch out for inaccuracies, prevent identity theft and manage your personal finances. The tricky part is navigating the maze of credit report services. Here are some tips for avoiding hidden fees, sneaky contracts and inaccurate information online:
- Do Your Homework - There are several websites that offer credit reports online. Research the prices and compare the products. Pick a company that you trust.
- No Free Lunch - "Free" credit reports can come with continuing obligations. Most free credit report sites will sign you up for a trial of a monthly service that you'll have to cancel in 30-days. Read the fine print and decide if a free report is really worth it. Paying a small fee for an online credit report usually gives you much more information and a lot less hassle
- Keeping Score- Make sure you are getting a credit score with your report. This number (generally between 350-850) ranks your ability to pay back a loan. Some free sites will only give you the basic information and then make you pay for your credit score at the last minute.
- The Big Picture - All those numbers mean nothing unless you can understand them. Check out the sample reports to see if your credit information comes with easy-to-read charts and graphs.
- Following the Numbers- Most free sites will sign you up for a credit monitoring service. If you are having problems with your credit or think that someone is using your identity, these monthly updates can be useful. Shop around between websites to make sure that you are getting the best service for the best price. If you ordered a free report and don't want credit monitoring, make sure that you call to cancel the service.
- Are We There Yet? - Many free credit report sites can take from 24 hours to 7 days to deliver your report. Other sites can take a few hours to deliver a password to you. If you don't want to wait around for your report, tryTrueCredit.com where they display all your information instantly.
- Bureau Basics -
Online credit reports are great because you get your information right away and in an easy to read format, but there are also low-tech alternatives. If your credit has been denied recently, you have 60-days to order a free report from the credit bureau that turned you down. Contact the three largest credit bureaus, Equifax, Experian and Trans Union, if you think you qualify. This report is sent by snail-mail, but it's free.
- Mix it Up - The three major credit bureaus often disagree about your credit record. It's best to order a credit report that has the information from all three sources so that you can compare and contrast their information. True Credit's website is one of several that provide you each report so you can get the full story.
- Defend Yourself - Credit report websites generally follow the Federal Trade Commission's guidelines for online privacy. Read the privacy and security statements to see how the company plans to protect your information.
- Reporting to the Feds - If you notice any inaccuracies on your credit report, you have the right to dispute the information under the Fair Credit Reporting Act. Visit www.truecredit.com/dispute for instructions on reporting an error. If things are serious and you think that you are the victim of identity theft, you will need to contact your creditors, report the crime to the police and file for a 90-day security alert with the credit bureaus. Visit the Federal Trade Commission at www.ftc.gov for more information on reporting inaccuracies and preventing identity theft.
