What Everyone Should Know About Free Annual Credit Reports and Reviews

What Everyone Should Know About Free Annual Credit Reports and Reviews

In 2005, the United States government signed into law the right for all citizens to receive a free annual credit report. As a matter of fact, many financial managers advise their clients to get an annual credit report review. This is intended to help guide them to become better informed about their credit reports.

People who keep track of what is happening with their credit are better prepared to make adjustments when required to maintain good credit. There are many reasons for someone to want to maintain a clean credit report.

The first reason of course, is to be able to get a loan when needed. Buying homes and new cars is easier with a good credit rating. A good credit score is also beneficial when switching to a new job or moving up through company ranks. It is a signal that the person is responsible and is not involved in fraudulent practices.

There are three credit reporting agencies which by law must offer anyone who wishes to receive one a free annual credit report. Experian, Equifax and TransUnion are the three agencies. It is possible to determine if there are mistakes on a credit record, and then clean us any mess that appears just by learning how to properly use a free annual credit report.

Keeping a watchful eye of everything that shows up on the report will go a long way toward maintaining the kind of credit rating that most people just wish for. However, just as with other areas of life, there are some not so honest people in the world who would just as soon cheat a person as look at them.

Scams exist everywhere and that included credit review scams. When checking a credit report it is always wise to make sure that you are dealing with a reputable company. All the personal information that is required to check information on a credit report makes anyone a prime target of those with evil intentions.

It is always best to check the credentials of anyone who asks for a social security number, driver’s license number or other personal information that can be used against you. If they don’t stack up to the test, the best thing to do is never start a relationship with them, and certainly never provide information they can use to cheat you.