A credit report tells about the consumer’s financial history. It contains mortgages and loans made by the consumer as well as the creditor or lender and the payments made. It reflects the consumer’s paying capabilities – whether he or she is able to make payments at the right time or if there are lapses.
Your credit report can be used when applying for another loan, such as a car loan, and when you want to rent an apartment or house.
Since the passing of the Fair and Accurate Credit Transaction Act in 2003, all consumers are entitled to get annual credit report from the 3 credit bureaus. So every year one person can avail 3 free credit reports. These credit bureaus are TransUnion, Equifax and Experian. Together with the FTC, they came up with a centralized way of getting legitimate free credit report through annualcreditreport.com.
Creating a centralized way did not stop scammers from putting up their own credit report site wherein the free credit report is not really free after all. Uninformed individuals are easy targets. One website to avoid is FreeCreditReport.com, which is now very popular because of their misleading practices. However, there are still countless agencies that offer “free” annual credit reporting that is not really free.
If you are not careful, you might fall into the trap of these credit report scammers and find yourself paying hundreds of dollars to a “free” credit report that you might not even see.
If you have been victimized by imposter sites, it will help to share your experience with the other consumers.
Once you get your annual credit report, you should check it for any discrepancies or inaccuracies. Aside from credit report scammers there are also people out there who steal identity and use your good credit standing to their advantage. They will open up many different accounts under your name and borrow money but leave you to pay for it. By checking your free annual credit report you will be able to tell if someone has been trying to use your identity.