Having you been searching on the term “free copy of credit report” and been confused by the reponses?  For example, you may have come across www.freecreditreport.com, which requires you to sign up for a trial version of an expensive monitoring service in order to get your free report.  How can something that requires you to sign up for a trial membership in a credit monitoring service be free?

Well, have no fear.  It is possible to find a “free copy of credit report” without having to pay an arm and leg – or anything at all.

Why is my credit report important?

Chances are you’re searching on the term “free copy of credit report” because you’ll be approaching lenders soon for a new car or home.  Or you may need to get your report to check on past inconsistencies.  Or you just may be curious.  That’s OK, because it’s always good to know where you stand in the credit market.

In fact, many different entities beyond just credit card companies will use the information in your credit report to determine whether you are a good risk.  These might include:

• Banks
• Merchants (such as department stores)
• Car dealerships
• Landlords
• Potential employers

It is possible that you could lose out on a great car, apartment or even job all because your credit report contained inaccurate information.

When Should I Start Searching for a “Free Copy of Credit Report”

If you know you’re going to be applying for a mortgage, car loan or other major purchase, reviewing your credit report a month or two before that application can give you the time you need to fix any problems – or be assured that all is well.  Because you can get a free copy of your credit report only once per year, be sure to time your request wisely.

Who Manages Credit Reports?

Vendors forward information about how you manage your bills, including notes on late payments, credit limits available and the like, to one of three different credit agencies.  These are:

• Experian
• Equifax
• TransUnion

These agencies take this information as well as information they share with each other to create a report that provides extensive details on your use of credit, from what your historic balances are to whether you’ve ever made any late payments.

How can I get a free copy of credit report?

The good news is that a federal law requires each agency to provide consumers with one free copy of their credit report every year.  The bad news is that a truly “free copy of credit report” is hard to find.  To avoid any surprise fees, you’ll want to turn to www.annualcreditreport.com, the site that was required to be established under the recently passed legislation.

How does the annual credit report site work?

Once you’ve landed on the right page, you’ll be asked to provide important information, such as your social security number and date-of-birth.  This information will be used to match you with the proper report.  Then you will be taken to a page where you can download reports from the three agencies.  Review these reports carefully for any inaccuracies – even something as simple as a name misspelling or inaccurate old address can lead to BIG problems in the future.

In short, your search for a “free copy of credit report” is over.  Utilizing the tools noted above you’ll be able to access at least one copy of your report per year.  Make it an annual promise to yourself – and your financial future!