Off Topic, but important

[LadyFisher]

In from Scam Busters:

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Can You Really Get a Free Credit Report -- Without Getting
Scammed?
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As of September 1, 2005, everyone in the US is now entitled to get a free copy of their credit report from each of the three major credit bureaus each year.

Unfortunately, many people are finding that actually getting their free credit report seems close to impossible.

That's because bogus websites are tricking people into paying -- and even the major credit bureaus make it quite difficult.

In fact, by now you've probably seen the advertisements on the Web and in your inbox. Companies left and right are offering
to provide you with your free credit report -- but for a fee.

OK. So how is it a free credit report if you have to pay for it? That's exactly what we were wondering.

Don't Pay For Something You're Entitled To

A bit of background: There are three major companies that track and report your credit history. These three companies are Equifax, Experian and TransUnion.

All US consumers are entitled to one free credit report each year from each of these three credit bureaus.

So while there are hundreds of companies who would like to charge you for receiving your credit report, the truth of the matter is, this is a service you're now entitled to by law each year at no charge.

So how do you muddle through the mass of free credit report offers without getting taken for a ride?

Surfing the Web

Many people simply type in "Free Credit Report" into their favorite search engine hoping to hit gold. Unfortunately, the
majority of sites that come up on top are sites that don't really offer free credit reports, but rather are sites that are offering credit monitoring services.

While credit monitoring services definitely have their pluses and can be used to prevent identity theft, we believe they shouldn't be used as a bait and switch tactic for getting a free credit report.

Even worse, some of the bogus websites -- especially those you hear about via spaham (misspelled intentionally) -- are simply
phishing scams.

Action: NEVER respond to a spaham offer to get a free credit report.

Another type of problem many people encounter when they try to get a free credit report is that it's almost impossible to find the free offer. Yes, it's there -- but it's so well
hidden that many consumers simply give up in complete frustration.

Here's another more subtle problem we found: one free credit report site we visited offered a free credit report. In addition to asking for your personal information, they also asked for your credit card information.

It wasn't until we read the fine print that we realized we would be authorizing them to charge our credit card for their credit monitoring service after 30 days. Not exactly the type of company you want to be doing business with, is it?

Unfortunately, many "free" credit report websites do business like the free credit report sites mentioned above. The trick
is finding the right website to use.

Getting It Right

So if there are so many sites out there trying to scam you out of your money for something you're entitled to for free, how
do you go about getting a legitimate free credit report?

Knowing where to go for your free credit report is the key.

According to the FTC website, there is only one website that is authorized to give out free credit reports. Here's what the FTC website says:

"Important information from the Federal Trade Commission, the nation's consumer protection agency: annualcreditreport.com is the ONLY authorized online source for you to get a free credit report under federal law. You can get a free report from each of the three national credit reporting companies every 12
months. Some other sites claim to offer 'free' credit reports, but may charge you for another product if you accept a 'free'
report."

==} [url=http://www.annualcreditreport.com:927ca]http://www.annualcreditreport.com[/url:927ca]

The AnnualCreditReport.com website was easy to use and we were able to access all three credit reports without paying a penny.

You can also get your free credit report via phone by calling 877-322-8228. Just remember, you can only request one free credit report from each of the three credit reporting agencies each year.

Why do you need a copy of your credit report?

You might be wondering why you'd want a copy of your credit report. There are many reasons you should check your credit report, including making sure your information is correct (which is important if you want to apply for a loan or a new credit card). You very likely will find mistakes on your credit report.

Further, getting a copy of your credit report is important to help monitor against identity theft. You can read more about identity theft here:
[url=http://www.scambusters.org/identitytheft.html:927ca]http://www.scambusters.org/identitytheft.html[/url:927ca]

Here are four tips for getting your free credit report:

Tip 1: Watch your spelling if you type in the web address (rather than click on our link) -- many of the bogus sites are just one letter away from the site you want.

Tip 2: To gain maximum benefit, you may want to space out your free credit reports from each of the 3 credit bureaus over the year. This will allow you to see changes that occur over time.

Tip 3: Print or download your credit report(s) immediately.
You may not be able to gain access again for free later.

Tip 4: After you get your free credit report, quit your browser so no one else can access it.

[Lotech]

LadyFisher,
That's really good information. I also found out (and I believe it to be true) that a legitamate credit request can lower your rating by as much as 15 points per request. Buying a car, getting a new credit card, buying furniture for your home, any purchase that results in a payment program can lower your credit standing when the lender requests a credit report on you. I found this out by talking to a banker when we were trying to buy a home. Our credit standing wasn't good enough because too many inquiries had lowered our standing to unacceptable for their policy.
Sad but true. Big Brother is everywhere.


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Life, is the time He gave you to determine where you want to spend eternity.
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Lotech Joe

[bwagner]

Lotech....from my experience, it's not neccessarily the inquiries that lower your rating, it's the denials. Usually these two do go hand in hand if there are a lot of them because it's usually when you're denied that you try another credit company. when you go to look at a new car for instance, the bureaus do not penalize you for each inquiry. They know that people are going to shop around, and allow a normal amount of inquiries without being detrimental at all, however, when these inquiries pile up, and most or all of them are denials, that tends to make others deny you too. They see a ton of denials, and feel that maybe they should deny you also to forgo the risk. I've been travelling down the long(for me at least) road to credit repair for a few years now. A few very unfortunate circumstances when a younger man has left me looking less than Good to creditors. It's working out for me now though, as I've learned alot from a few companies on how to make things right. Good luck on your home purchase.

[ducksterman]

It's my understanding that each of the three credit reporting companies use different criteria so reports from each will vary....following over the year makes sense but won't necessarily be comparing apples and apples.

[Gigmaster]

Yes, a credit request can lower your points. And I've got worse new so for you! Places you wouldn't even think of request your credit. When I checked mine, I found that the local Direct TV (I couldn't remember how to spell sattilite..Oh well, they shoudn't have done it anyway...)) company had requested it, the Bank where I do busininess (I don't do checks and haven't tried to borrow money from them, so why the check???), and even the local Kroger grocery store, where I cash my paychecks (even though I didn't write them)! This is garbage! If your not asking for credit, then no one has any business looking up your credit. It's not even an employers business, unless they are going to give you a loan!

This is one of my major PET PEEVES about modern times. If they are not giving you money on a loan...THEN IT'S NONE OF THEIR BUSINESS!!!

I recently went back to a client and tore their check up in front of them because the bank wanted to take my finger-prints to cash it. I told them that I consider that the banks refusal to honor the check (since I'm not the one who wrote it).

Check your credit closely. It's time to make a stand. Someone's right to invade your privacy is very narrow....protect it well, before it's too late....

Semper Fi!


[This message has been edited by Gigmaster (edited 26 January 2006).]

[comanche]

thank-you-lf

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bob faorite past-times winter steelie fishing-fall bow-hunting-would write more but with my typing i would be here for wks.??

[Jeremy]

Thank you LF, this is a good, informative post.

Last night when my bride (of 26 yrs) and I were sorting papers for the taxman, she grinned and reminded me of yet another year of zero $$ paid out for any late fees regarding credit cards.

We've paid one late fee in all this time. A bill was forgotten when we went on our annual 2 week vacation!

Oh, and yes, she's the banker in the house! There's a reason for that! *BG*

Jeremy.

[SilverMallard]

The one that really chaps my hide is that insurance companies check your credit ratings when you apply for insurance. Now, insurance premiums are ALWAYS prepaid! So what the heck does a credit score have to do with their underwriting decision? Well, the industry lobbyists have convinced our gov'ts that it does. I say rubbish!

Here in MO, insurance co's can even deny you coverage based solely on your credit rating. In some states, they cannot. Here's the irony...

When we bought our first home we were making very good money and had a very low debt ratio and excellent payment history. Our loan flew through the primary lending market for a conventional 30 year mortgage with minimal down payment and we were only buying about 1/2 the "house" we qualified for. We applied for homeowners insurance with one company and were denied based on our credit rating! So we went to a bigger company...the biggest...and they were more than happy to get our business without checking our credit rating (which was over 700).

Yes, credit history is being abused by the system. And the system is not very consumer friendly in spite of recent gov't attempts to make it moreso.

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My New Year's resolution is to have more fun...even if YOU don't.