Free Instant Credit Reports: Now It's Your Turn

Welcome to the world of free instant credit reports. Since 2005, you have the right to view your credit report once a year for free.

In the past, Big Brother-like credit reporting bureaus compiled financial reports on millions of consumers in relative secrecy. The bureaus noted how the individual handled debt, how long they were employed, even whether they'd been arrested. These credit reports went to paying customers like banks and credit card companies. About the only person who wasn't able to easily see the information was the consumer himself.

Today every American has the right to a no-strings, free instant credit report. It's a welcome relief to the millions who had to pay to review their credit reports in the past. The free credit reports are a result of the FTC's final ruling under the Fair and Accurate Credit Transactions Act (FACTA).

Since 2005, the plan requires:

All three reporting bureaus (Equifax, TransUnion and Experian) must provide, upon request, a free copy of their credit report once every 12 months

There must be a centralized source to process the requests

This source must include a Web site, toll-free telephone number and a postal address

What's the catch?
There isn't one. It seems like this would be an excellent opportunity for the credit bureaus to send you through a maze of requests to discourage you from applying for your free report, or to take the opportunity to capture more personal information about you. But no. The FTC requires the agencies make the process simple, uncluttered with advertisements and as minimally intrusive as possible.

The agencies are allowed to collect only as much personal identity information as necessary to process your request.

The Process is Easy:

All you need to get a report is to know some of your credit account numbers. You may have to verify personal information or supply an account number for verification

You can sign up online

Within a few moments, you'll have your report

free credit reports and how they affect you as a consumer