Fixit: Everyone gets one free credit report a year

By Karen Youso, Star Tribune

Last update: September 3, 2006 - 11:30 PM

Q Can a person check their credit rating themselves for free? I keep hearing ads for a service that will do it for you, for free. It doesn't make sense.

A You're entitled to one free credit report a year from each of the three national credit bureaus: Equifax, Experian and TransUnion. To do it yourself, visit www. AnnualCreditReport.com, or phone toll-free 1-877-322-8228 or write Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

You can order all three credit file disclosures at the same time, or order one now and others later.

If you order all three at the same time, you can compare them. However, you will not be eligible for another free credit file disclosure for 12 months.

If you order, say, one every four months, you can keep track of any changes or new information that may appear on your credit file disclosure.

Credit report vs. credit score

Don't confuse a credit report with a credit score. A credit score is a mathematical model that evaluates many types of information in a credit file. A credit score is used by a lender to help determine whether a person qualifies for a particular credit card, loan or service. Most credit scores estimate the risk a company incurs by lending a person money or providing them with a service -- specifically, the likelihood that the person will make payments on time in the next two to three years. Generally, the higher the score, the less risk the person represents.

A copy of a credit score is not free, typically. You can buy a credit score when you request your free annual credit report as described above. Or you can purchase it from one of the nationwide consumer credit reporting companies: Equifax, www.equifax.com; Experian, www.experian.com, and TransUnion, www.transunion.com.

Includes information from the Federal Trade Commission and annualcreditreport.com.

Send your questions to Fixit in care of the Star Tribune, 425 Portland Av. S., Minneapolis, MN 55488, or call 612-673-9033, or e-mail fixit@startribune.com.