Keeping the "Free" in Free Credit Report
By Scott McQuarrie
So many banks, credit card companies and financial services firms are offering free credit reports that it's hard to stay current with them all. There is even a campy commercial getting huge national exposure that features an unlucky guy who is reduced to singing in a fish-and-chips restaurant because he didn't get his free credit report.
What is the truth about these offers? Most important, especially to American consumers who are understandably a bit cynical about "free" offers, which of these offers are really free?
The short answer would be, "Not many." But we won't stop at short answers here, we will give you the whole story - in language you can understand, at a length you can easily digest in a few minutes. So the beginning of our more detailed answer would be, "Not many free credit report offers are really free, but we can tell you which ones."
Most free credit reports cost you
Most of the free credit report offers, even ones that are sent out by major banks and lending firms, are really subscription services offered directly or indirectly by one or more of the three major credit bureaus. Experian, Equifax and TransUnion are the "big three" credit reporting firms, and eventually the road leads back to one or more of them.
In addition, there are scores of firms in the "identity protection" business who link the free credit report offer to a membership service. The fine print on most of these offers makes it clear that you are subscribing to such a service, usually three months to a year at a time, that charges you a monthly fee. For your money, which can range from $6.95 to $19.95 per month, you get alerted to suspicious activities, credit inquiries and late-payment notices.
The real free offers Because of the Fair Credit Reporting Act (FCRA), the "big three" credit bureaus were forced to create and maintain a Web site to offer consumers a free credit report every year. The site is not free of its own fine print, of course, so if you decide to use this service, of course, read everything and follow instructions carefully.
Federal law also says that 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. Interestingly, you're also entitled to a free credit report each year if you're unemployed (and plan to look for a job within 60 days), if you are on welfare or if you believe your report is inaccurate due to fraud, including identity theft.
Creative package deals
There are also some creative banks in the consumer marketplace that offer a free credit report, or abridged online access that includes the three-digit "credit score" used by the reporting bureaus, when you get their credit card or open another type of account. Some of these banks even have special programs and credit card offers for people who have had financial setbacks, even bankruptcies. At the other end of the spectrum are such sought-after cards as the premium American Express products, which offer high-income, low-risk consumers various packages of services, including credit report access and monitoring.
There is no reason to join an annual service or pay a monthly fee if all you want is to look at your credit report once a year. If you do have an ongoing need for monitoring your credit report, investigate one of the banks or credit card issuers that offers the service as part of a package deal. At the very least, you should arrange to get hold of your free credit report at least annually, if only to check for erroneous reports and misuse of your accounts or identity.
Whether you see it for free or a prospective lender pays for the privilege, it is essential that your credit report be accurate. There is no amount of money that will make someone else care about your financial reputation more than you do. It's your responsibility to ensure its accuracy, and with a free credit report just a few mouse clicks away, it won't cost you anything but a little time.
This article provided by Scott McQuarrie representing EZWatch Pro Video Surveillance, a leading provider of security cameras and video security systems for any application. The EZWatch Pro brand has come to stand for world-class expertise in electronic security, video surveillance and the myriad technologies involved in both fields. From small business to gigantic international airports, there is an EZWatch Pro solution to meet any and every business, school and government security challenge.
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