Accessing your free credit report online annually is a simple way to protect your good credit rating. In the event that there are errors on the annual report, or if identity theft or fraud has taken place, it may be necessary to file a credit dispute with the appropriate reporting agency. It is important to dispute errors and fraudulent charges as soon as possible, to avoid impacting your long-term credit score. A no-cost annual credit check from the Federal Trade Commission-approved site, Annual Credit Report, can help.
Instant Credit Report Online
Requesting an instant report online provides you with the ability to verify that all of the information that combines to create your credit score is accurate. A poor overall score can lead to excessively high interest rates, higher payments, and an increasing debt burden. Even consumers that keep careful track of their debt burden benefit from requesting an annual report, due to the risk of identity theft and fraud.
Identity theft and credit fraud may not be immediately evident, but will show up on a report from any of the three major reporting agencies, which include Experian, TransUnion, and Equifax. A credit account opened fraudulently in your name is evident during a credit check, but random charges on existing accounts may be more difficult to identify unless you are vigilant.
File Dispute for Report Errors Online
When performing an annual credit check, you may find items on your report that are in error. Some are due to identity theft or fraud, while others may be due to a simple discrepancy in the information provided to the reporting agency by the lender. Regardless of the source of the error, it is necessary to initiate a credit dispute immediately, to prevent the error from affecting your score.
Each of the three major credit reporting agencies offers the ability to file a dispute online. When filing this report, make sure that you include all pertinent information, including any evidence to prove that the item is in error. When possible, you should attempt to clear the transaction with the lender concurrently with the filing of an online dispute report.
Annual Credit Reports: Free but Priceless
Whether you are working on getting out of credit card debt or you're just trying to be responsible with your accounts, you need a comprehensive view of all debt that exists. You can get a free report online, which improves your chances of keeping track of your debt burden, improves your credit score, and prevents identity theft and fraud. Unfortunately, the U.S. government doesn't mandate that citizens receive a copy of their score, which is compiled differently by each of the major reporting agencies. Bottom line: You can get a free report, but you'll have to pay for your score.
Sources:
Annual Credit Report. AnnualCreditReport.com. Accessed March, 2011.
Updated: March 2011
Victoria Nicks - Victoria Nicks has a Master's Degree in IT, and extensive hands-on experience with various types of hardware and software.
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