Your Free Annual Credit Report

For people in debt, checking on your credit report regularly is good advice. But what no one tells you is how to go about it.

The information on a credit report is important. Creditors look at your report before making a decision on whether to loan you money for a car, a home, or other large purchases. By providing a payment history, the report gives them an idea of how likely a person is to repay the loan money.

For a person in debt, it is important to keep a watchful eye on what your credit report says. The good news is that you do not have to pay for one. Each year you are guaranteed by law one free credit report from each of the three consumer credit reporting agencies – Equifax, Experian, and TransUnion.  If you request each one at different times of the year, it lets you keep an even closer watch on them.

To order your free annual credit report, the Federal Trade Commission recommends visiting www.annualcreditreport.com or calling 1-877-322-8228. You can also obtain an Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta GA 30348-5281. You can find that form on certain FTC brochures or on the FTC website.

Unlike in the past, you should not contact the credit agencies directly. Nowadays, they have partnered together and only work through the website and contact information above.

The FTC also recommends avoiding so-called “imposter” websites on the Internet that promises free prices but that do not deliver on that promise. 

The State of Michigan suggests that once you receive your report, you should check the following things:

• Personal information
• Credit account statements for unfamiliar debts.
• Negative entries, such as unpaid debts or unknown accounts.  
• Accurate public record information

If you experience errors, you should dispute them with the credit agency in writing.