Nowadays it seems that every channel you tune into, there's a commercial for a different company offering you a free credit report. I don't know about you, but most of the time, when a for-profit company is advertising something, it's because there's a sale attached to it. There's no way the bean counters at any well-run company will keep green-lighting an advertising campaign if said campaign is not turning a profit. And why do all those companies act like they're looking out for our best interests by offering us a free credit report? What's in it for them?
Where does the truth lie (I know, wrong choice of words) when it comes to those free offers. It's true that with all the publicity that has been given to scams of all nature, people have grown increasingly wary of free offers. Yet if the ads keep airing it's because some people are still biting. Which begs the question: which of these offers (if any) are really free?
The short version of the answers to these questions would simply be "No, they are typically not free", and "Yes, they mostly come with strings attached". If you're the type of person who like more detailed answers, then feel free to read on. A more detailed answer would be that just about any offer you see advertised on TV is NOT free, and so are most of the offers you see online. There are free offers, though, and we can help you sort out the free variety from the paid variety.
By now you can probably tell that most of these free credit reports offers have a cost. Most of the major banks and lending firms offer "free credit reports" that are really subscription services (which offer anytime access to your report) offered either by them or by one of the major credit bureaus that they have a partnership with. Those three credit bureaus are Equifax, Experian, and Transunion. While there are more than three credit bureaus, those three are the ones that count and which all companies get their information from and report to.
Another reason for the rise in free credit report offers is that people have been getting more concerned about the content of their credit reports, because of the rise of "identity theft". Consequently, a lot of companies have entered the so-called "identity protection business". Their business model is simple: they advertise a free credit report, but in the fine print of their offer, should you accept it, it says that you're agreeing to subscribe to their credit monitoring services. They typically charge from $6.95 to $19.95 a month, and upon sign up you enroll for a plan that lasts anywhere from 3 months to a year. For your money, you get alerted in the case of suspicious activity on your account, and get notified about credit inquiries and late payments.
With the enactment of the Fair Credit Reporting Act (FCRA), the "big three" credit bureaus are each required by law to offer their customers a free credit report every year. They're not required to send it to you, though, so you have to actually ask for it. You can do so by mail, by phone, or over the Internet. Be sure you follow the instructions so you can get your free credit report, the one where you really don't have to pay a dime.
Also, by federal law, you're entitled to a free credit report if a company denies your credit, insurance or employment application based on information in that report. In this case, you must request your report within 60 days of such an occurrence. If you're unemployed (and planning to look for a job within 60 days), you'll be glad to know that you're also entitled to a free credit report each year. The same holds true if you are on welfare or if you believe your report is inaccurate due to fraud, including identity theft.
When it comes to competition, few industries push it to the level that banks do. Keeping current customers from going to the competitor and/or bringing them in from the competition requires ever-improving offers. That has prompted many banks to offer stripped-down versions of credit monitoring services as part of their services, as a reward for doing business with them. The terms vary but usually all you have to do is get approved for their credit card or open some type of account with them and you're good to go. Similarly, the companies that serve the high-end market (like, for example, American Express) also strive to offer their customers a complete suite of financial services, which almost always includes credit report access and monitoring.
Some people only use credit sparingly. They have no need for continuous monitoring of their credit reports or anything like that. If that's you, all you need to do is to ask one credit bureau for a credit report every 4 months, just so you can check that your accounts are accurate and that you haven't fallen victim to identity theft. If you need more than that basic level of monitoring, then you can turn to the companies that offer such services in their package deals so that you don't have to pay extra for it.
Because so many life-changing decisions hang on the status of your credit report, it is essential that your credit report be accurate and that you take the necessary steps so that it remains that way. Monitoring services will only alert you, they won't do the legwork to correct anything that might go wrong. It's your responsibility to ensure that your credit report contains no errors, and you can do that without having to pay for it. - 16459
Where does the truth lie (I know, wrong choice of words) when it comes to those free offers. It's true that with all the publicity that has been given to scams of all nature, people have grown increasingly wary of free offers. Yet if the ads keep airing it's because some people are still biting. Which begs the question: which of these offers (if any) are really free?
The short version of the answers to these questions would simply be "No, they are typically not free", and "Yes, they mostly come with strings attached". If you're the type of person who like more detailed answers, then feel free to read on. A more detailed answer would be that just about any offer you see advertised on TV is NOT free, and so are most of the offers you see online. There are free offers, though, and we can help you sort out the free variety from the paid variety.
By now you can probably tell that most of these free credit reports offers have a cost. Most of the major banks and lending firms offer "free credit reports" that are really subscription services (which offer anytime access to your report) offered either by them or by one of the major credit bureaus that they have a partnership with. Those three credit bureaus are Equifax, Experian, and Transunion. While there are more than three credit bureaus, those three are the ones that count and which all companies get their information from and report to.
Another reason for the rise in free credit report offers is that people have been getting more concerned about the content of their credit reports, because of the rise of "identity theft". Consequently, a lot of companies have entered the so-called "identity protection business". Their business model is simple: they advertise a free credit report, but in the fine print of their offer, should you accept it, it says that you're agreeing to subscribe to their credit monitoring services. They typically charge from $6.95 to $19.95 a month, and upon sign up you enroll for a plan that lasts anywhere from 3 months to a year. For your money, you get alerted in the case of suspicious activity on your account, and get notified about credit inquiries and late payments.
With the enactment of the Fair Credit Reporting Act (FCRA), the "big three" credit bureaus are each required by law to offer their customers a free credit report every year. They're not required to send it to you, though, so you have to actually ask for it. You can do so by mail, by phone, or over the Internet. Be sure you follow the instructions so you can get your free credit report, the one where you really don't have to pay a dime.
Also, by federal law, you're entitled to a free credit report if a company denies your credit, insurance or employment application based on information in that report. In this case, you must request your report within 60 days of such an occurrence. If you're unemployed (and planning to look for a job within 60 days), you'll be glad to know that you're also entitled to a free credit report each year. The same holds true if you are on welfare or if you believe your report is inaccurate due to fraud, including identity theft.
When it comes to competition, few industries push it to the level that banks do. Keeping current customers from going to the competitor and/or bringing them in from the competition requires ever-improving offers. That has prompted many banks to offer stripped-down versions of credit monitoring services as part of their services, as a reward for doing business with them. The terms vary but usually all you have to do is get approved for their credit card or open some type of account with them and you're good to go. Similarly, the companies that serve the high-end market (like, for example, American Express) also strive to offer their customers a complete suite of financial services, which almost always includes credit report access and monitoring.
Some people only use credit sparingly. They have no need for continuous monitoring of their credit reports or anything like that. If that's you, all you need to do is to ask one credit bureau for a credit report every 4 months, just so you can check that your accounts are accurate and that you haven't fallen victim to identity theft. If you need more than that basic level of monitoring, then you can turn to the companies that offer such services in their package deals so that you don't have to pay extra for it.
Because so many life-changing decisions hang on the status of your credit report, it is essential that your credit report be accurate and that you take the necessary steps so that it remains that way. Monitoring services will only alert you, they won't do the legwork to correct anything that might go wrong. It's your responsibility to ensure that your credit report contains no errors, and you can do that without having to pay for it. - 16459
About the Author:
We have been advising people for years to get a no trial credit report, instead of having to pay for the service. For more of the same type of quality financial advice, feel free to drop by our personal finance blog.
