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.
Common sense tells us that if the ads keep airing, it's because the campaigns are successful in reeling in new customers. At the same time, almost everyone knows that there's no such thing as a free lunch and that "free" is often a bait that scammers use to lure in unsuspecting victims. In that regard, it's relevant to wonder if those offers are really free? Free as in no monetary exchange whatsoever.
If you don't want to be bothered with a lengthy explanation, we can cut to the chase right now and tell you that only a select few of these offers are actually really, absolutely free. But if you have a little time on your hands (or have a curious mind), we can elaborate. By pointing out that not only are the vast majority of the free credit report offers out there NOT free, but also by telling you that there are fool-proof ways of distinguishing the free ones from the not-free ones.
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.
Another reason for the rise in free credit report offers is that people have been getting more concerned about the content of their credit reports, because of the rise of "identity theft". Consequently, a lot of companies have entered the so-called "identity protection business". Their business model is simple: they advertise a free credit report, but in the fine print of their offer, should you accept it, it says that you're agreeing to subscribe to their credit monitoring services. They typically charge from $6.95 to $19.95 a month, and upon sign up you enroll for a plan that lasts anywhere from 3 months to a year. For your money, you get alerted in the case of suspicious activity on your account, and get notified about credit inquiries and late payments.
With the enactment of the Fair Credit Reporting Act (FCRA), the "big three" credit bureaus are each required by law to offer their customers a free credit report every year. They're not required to send it to you, though, so you have to actually ask for it. You can do so by mail, by phone, or over the Internet. Be sure you follow the instructions so you can get your free credit report, the one where you really don't have to pay a dime.
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. - 16003
Common sense tells us that if the ads keep airing, it's because the campaigns are successful in reeling in new customers. At the same time, almost everyone knows that there's no such thing as a free lunch and that "free" is often a bait that scammers use to lure in unsuspecting victims. In that regard, it's relevant to wonder if those offers are really free? Free as in no monetary exchange whatsoever.
If you don't want to be bothered with a lengthy explanation, we can cut to the chase right now and tell you that only a select few of these offers are actually really, absolutely free. But if you have a little time on your hands (or have a curious mind), we can elaborate. By pointing out that not only are the vast majority of the free credit report offers out there NOT free, but also by telling you that there are fool-proof ways of distinguishing the free ones from the not-free ones.
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.
Another reason for the rise in free credit report offers is that people have been getting more concerned about the content of their credit reports, because of the rise of "identity theft". Consequently, a lot of companies have entered the so-called "identity protection business". Their business model is simple: they advertise a free credit report, but in the fine print of their offer, should you accept it, it says that you're agreeing to subscribe to their credit monitoring services. They typically charge from $6.95 to $19.95 a month, and upon sign up you enroll for a plan that lasts anywhere from 3 months to a year. For your money, you get alerted in the case of suspicious activity on your account, and get notified about credit inquiries and late payments.
With the enactment of the Fair Credit Reporting Act (FCRA), the "big three" credit bureaus are each required by law to offer their customers a free credit report every year. They're not required to send it to you, though, so you have to actually ask for it. You can do so by mail, by phone, or over the Internet. Be sure you follow the instructions so you can get your free credit report, the one where you really don't have to pay a dime.
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. - 16003
About the Author:
We strongly suggest that people get a no trial credit report, instead of paying for the service. For more of the same type of money-saving tips, visit our personal finance blog.
