With so many companies advertising free credit reports on national television, it's becoming increasingly hard to separate the wheat from the chaff. Because if the advertised offer is really free, then can the company justify paying for national advertising? And it's not like the campaigns ran and then stopped all of a sudden. They've been on the air for years now, so it has to be a profit-generating venture. And they all seem to be hell-bent on showing you what horrible things can happen to you should you not get your free credit report, while minimizing the fact that they're just as intent on selling you something.
Where does the truth lie (I know, wrong choice of words) when it comes to those free offers. It's true that with all the publicity that has been given to scams of all nature, people have grown increasingly wary of free offers. Yet if the ads keep airing it's because some people are still biting. Which begs the question: which of these offers (if any) are really free?
The short version of the answers to these questions would simply be "No, they are typically not free", and "Yes, they mostly come with strings attached". If you're the type of person who like more detailed answers, then feel free to read on. A more detailed answer would be that just about any offer you see advertised on TV is NOT free, and so are most of the offers you see online. There are free offers, though, and we can help you sort out the free variety from the paid variety.
Most of the free credit report offers do cost money. Most of them, even the ones that are sent out by major banks and lending firms, are really subscription services that let you view your credit report when you want to. Those services are offered directly by the lending companies, or indirectly by one or more of the three major credit bureaus. Experian, Equifax and Transunion are the "big three" credit reporting firms, and because of their clout the other credit bureaus have become largely irrelevant.
Because of the rise of identity theft, there has been a steep rise in the number of companies in the "identity protection" business. What they typically do is that they offer a "free" credit report, which is linked to a membership service. While the focus in the advertisements is on the free report, the fine print on most of these offers clearly states you are agreeing to subscribe to such a service, usually three months to a year at a time, that charges you a monthly fee. This fee, which can range from $6.95 to $19.95 per month, entitles you to a service that alerts you to suspicious activities, credit inquiries and late-payment notices on your account.
For a few years now, the major credit bureaus are under legal obligation to each furnish you with a free credit report every year. That's three credit reports per year. But you have to ask for it, since their obligation is only to provide you with it IF you ask for it. There are three ways to get it: by phone, by mail, or online. In all three cases, you have to follow specific instructions so that your totally free credit reports gets delivered to you.
Also, by federal law, you're entitled to a free credit report if a company denies your credit, insurance or employment application based on information in that report. In this case, you must request your report within 60 days of such an occurrence. If you're unemployed (and planning to look for a job within 60 days), you'll be glad to know that you're also entitled to a free credit report each year. The same holds true if you are on welfare or if you believe your report is inaccurate due to fraud, including identity theft.
Due to the competitive nature of the banking business, there are some banks in the marketplace that offer a free credit report, and a basic online access service that also gives you your credit score, when you get approved for their credit card or open another type of account. Sought-after credit cards as the premium American Express products, also offer their high-income, low-risk consumers various packages of services, including credit report access and monitoring.
If your needs do not go beyond looking at your credit report a couple of times a year to check for erroneous reports and misuse of your accounts or identity, there's no need to pay a monthly fee for that. Even if you do want to monitor your credit report on an ongoing basis, before you go to a paid service, set up your free reports so that you receive one every four months. If that's still not enough for you, then you can investigate one of the banks or credit card issuers that offers the service as part of a package deal.
With so many aspects of your life being impacted by your credit report (credit, insurance, employment), there's no need to stress the importance of monitoring your credit report. Should you spot any errors, you should definitely take action as soon as possible to correct them. And there's no reason why you shouldn't be on top of this: odds are, you won't even have to pay to get your credit reports. - 15224
Where does the truth lie (I know, wrong choice of words) when it comes to those free offers. It's true that with all the publicity that has been given to scams of all nature, people have grown increasingly wary of free offers. Yet if the ads keep airing it's because some people are still biting. Which begs the question: which of these offers (if any) are really free?
The short version of the answers to these questions would simply be "No, they are typically not free", and "Yes, they mostly come with strings attached". If you're the type of person who like more detailed answers, then feel free to read on. A more detailed answer would be that just about any offer you see advertised on TV is NOT free, and so are most of the offers you see online. There are free offers, though, and we can help you sort out the free variety from the paid variety.
Most of the free credit report offers do cost money. Most of them, even the ones that are sent out by major banks and lending firms, are really subscription services that let you view your credit report when you want to. Those services are offered directly by the lending companies, or indirectly by one or more of the three major credit bureaus. Experian, Equifax and Transunion are the "big three" credit reporting firms, and because of their clout the other credit bureaus have become largely irrelevant.
Because of the rise of identity theft, there has been a steep rise in the number of companies in the "identity protection" business. What they typically do is that they offer a "free" credit report, which is linked to a membership service. While the focus in the advertisements is on the free report, the fine print on most of these offers clearly states you are agreeing to subscribe to such a service, usually three months to a year at a time, that charges you a monthly fee. This fee, which can range from $6.95 to $19.95 per month, entitles you to a service that alerts you to suspicious activities, credit inquiries and late-payment notices on your account.
For a few years now, the major credit bureaus are under legal obligation to each furnish you with a free credit report every year. That's three credit reports per year. But you have to ask for it, since their obligation is only to provide you with it IF you ask for it. There are three ways to get it: by phone, by mail, or online. In all three cases, you have to follow specific instructions so that your totally free credit reports gets delivered to you.
Also, by federal law, you're entitled to a free credit report if a company denies your credit, insurance or employment application based on information in that report. In this case, you must request your report within 60 days of such an occurrence. If you're unemployed (and planning to look for a job within 60 days), you'll be glad to know that you're also entitled to a free credit report each year. The same holds true if you are on welfare or if you believe your report is inaccurate due to fraud, including identity theft.
Due to the competitive nature of the banking business, there are some banks in the marketplace that offer a free credit report, and a basic online access service that also gives you your credit score, when you get approved for their credit card or open another type of account. Sought-after credit cards as the premium American Express products, also offer their high-income, low-risk consumers various packages of services, including credit report access and monitoring.
If your needs do not go beyond looking at your credit report a couple of times a year to check for erroneous reports and misuse of your accounts or identity, there's no need to pay a monthly fee for that. Even if you do want to monitor your credit report on an ongoing basis, before you go to a paid service, set up your free reports so that you receive one every four months. If that's still not enough for you, then you can investigate one of the banks or credit card issuers that offers the service as part of a package deal.
With so many aspects of your life being impacted by your credit report (credit, insurance, employment), there's no need to stress the importance of monitoring your credit report. Should you spot any errors, you should definitely take action as soon as possible to correct them. And there's no reason why you shouldn't be on top of this: odds are, you won't even have to pay to get your credit reports. - 15224
About the Author:
We strongly suggest that people get a free no money credit report, instead of paying for the service. For more of the same type of quality financial advice, feel free to drop by our personal finance blog.
