Thanks to a new federal law, you will be able to access one free credit report a year from each of the nation's top consumer credit reporting companies, Equifax, Experian, and TransUnion.
Eligibility for the reports will be phased in by state throughout 2005, starting with Western states. Midwest consumers can get their reports starting March 1, and Southerners, on June 1. Residents of the East Coast, District of Columbia and U.S. territories can obtain their reports on September 1.
These agencies track your credit history and award you a score based on whether or not you pay bills on time. The better your score the more likely you can borrow at lower rates, reduce insurance premiums and even cut utility bills.
A Poor Score Can Cost You
Prospective employers, landlords, insurance underwriters as well as others who grant credit may all acquire your credit report.
That's why it's so important for you to check your report at least once a year. Even if you pay every bill on time, mistakes can happen. With up to 79 percent of credit reports containing errors ranging from mistaken identities to multiple listings of the same loan, it is up to you to keep on top of your credit history.
Industry experts recommend you review your credit report least once a year to check for mistakes or misrepresentations that could potentially ruin your credit rating. By checking your credit report regularly you can also spot any attempts at identity theft, and monitor your debt management.
Who is Checking Your Credit History?
By accessing your report, you can check for accounts that aren't yours, late payments charged to your name that you believe were paid on time, multiple collection agency notices for a single debt, or incorrect tax liens, default judgments, or bankruptcy filings. You can also check to see if anyone you don't know has reviewed your credit history.
While you can't correct mistakes on your own, the report will also show you how to dispute a charge through the credit bureau sites. Wachovia has procedures that assist customers who believe information furnished to National Consumer Reporting agencies is inaccurate.
For more useful information about assessing your credit history, and credit scoring, visit our Planning Guides.
