All Americans are now able to get free credit reports every year, from each of the three major credit bureaus. The free credit reports, which used to cost as much as $9.50 each, come as a result of the FTC's final ruling under the Fair and Accurate Credit Transactions Act. Thanks to the ruling, the three major credit reporting agencies, Equifax, TransUnion and Experian, are each required to provide consumers, upon request, a free copy of their credit report once every 12 months from a centralized source. This centralized source can be includes a Web site, a toll-free telephone number and a postal address.
The reports will not automatically be sent out. Each consumer must request their reports one of these three ways. Go to http://www.annualcreditreport.com/, which is the only authorized source for consumers to access their annual credit report online for free. Or, call (877) 322-8228. Lastly, you may complete the form on the back of the Annual Credit Report Request brochure, and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA, 30348-5281. You'll be able to order all three credit reports at one time, or at different times throughout the year. It's your choice. But be sure to order from the centralized agency. If you go directly to the credit reporting agencies, you will be charged unless you fit another criteria for a free report.
The new ruling doesn't replace the other ways to receive a free credit report. You're still entitled to a free credit report if: you've been denied a loan, insurance policy or job based on your credit report; you're applying for unemployment or receive public assistance; and you currently reside in a state that already offers an annual free credit report from each credit reporting agency (Colorado, Maine, Massachusetts, Maryland, New Jersey and Vermont. Georgia residents are entitled to two free annual credit reports from each credit reporting agency).
What's the catch?
It seems like this would be an excellent opportunity for the credit reporting agencies to send you through a complicated maze of requests to discourage you from applying for a free report, or to require you to hand over more of your personal information so they can turn around and sell it. But there's no catch. The FTC has required the agencies to make the process simple, uncluttered with advertisements and as minimally intrusive as possible. Also, the agencies are allowed to collect only as much personal identity information as necessary to process your request.