How to Get a Free Credit Report
The Martin Agency, responsible for the freecreditreport.com ad campaign, deserves commendation. They have created funny and relatable advertising, using memorable and catchy songs. What consumer under the age of 30 does not know about freecreditreport.com? Unfortunately, while the agency may clink glasses to a job well-done, freecreditreport.com does not deserve its noble name. Freecreditreport.com, and the dozens of other similar companies, actually offer credit monitoring services.
In order to get a free credit report, customers must sign up for a credit monitoring service. Credit monitoring services usually cost around $30-$90 month, with about $100-$400 in registration costs. The customer registers for a free trial period, but provides credit card information. They are then shown a credit report without the credit score. The customer must pay around $15-$30 to see their credit score, and is then offered a series of further add-on options.
The credit monitoring service charges the credit card immediately for the full order plus all membership fees. If the customer chooses to end the credit monitoring service during the trial, they must initiate the lengthy process of a credit card refund. Obviously, freecreditreport.com is not free and neither are other companies advertising free credit reports. A truly free credit report is only possible through two legal provisions.
1. Annual Credit Report
Federal law now states that all consumers must be provided an opportunity for a free credit report once a year. Some states mandate more frequently. The easiest way to get this free credit report is online at www.annualcreditreport.com. The user-friendly website takes consumers through an identification process, and then allows them to immediately access and print their consumer reports, free of charge. The site takes the consumer through the process for Experian, TransUnion, and Equifax. The free credit reports, however, only include credit information. Consumers must pay an additional $5-$7 for their credit scores. Free annual credit reports can also be accessed by writing the Annual Credit Report Request Service, or calling them at 1-887-322-8228. The free credit reports are mailed within 15 days, and usually take about 2-3 weeks for delivery.2. Credit Denial
Anytime a consumer is denied credit, the credit granting agent must send a letter stating their decision. These letters are generally vague, and mainly urge the consumer to contact the credit bureaus. When consumers receive these letters, they have up to 90 days to write the credit bureau for a free credit report. The letter provides the credit bureau or bureaus used, and their contact information.
Credit bureaus are private, not government organizations. They charge every time a credit check is run, and even more when a background check is done. They charge any time a consumer wants their own credit report, and certainly anytime a company wants to offer them. Despite the popular commercials, consumers may only obtain a free credit report by invoking consumer rights.
