Your credit score affects your daily life and the opportunities available to you and your family. Obtaining your credit score is simple and can give you a good idea of where you stand in the eyes of lenders. Knowing your credit score and history can also help you avoid getting into debt and accumulating bad credit.
The Fair and Accurate Transactions Act
The Fair and Accurate Transactions Act (FACT), a 2003 amendment to the pre-existing Fair Credit Reporting Act (FCRA), states that all of the nationwide credit bureaus must give a free credit report once a year to an individual who requests it. This request can be made by phone, mail or online. You're also entitled to a free credit report if: • A company denies your application for credit, insurance or employment and you request your credit report within 60 days • You're the victim of identity theft or fraud • You're unemployed and intend to apply for a job within 60 days of requesting your report • You live in Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey or Vermont (These seven states allow residents one additional free credit report per year.) • You receive welfare. If you don't meet any of these requirements and you want a second copy of your report within a 12-month period, the most any national credit bureau can charge you is $10.50.
Requesting a Free Credit Report
The method of your request dictates how long you must wait for your report. If you request it online, you can access your credit report immediately. If you request it via phone or mail, you'll receive your report within 15 days of your call, or 15 days after your form reaches the Annual Credit Report Request Service.
Credit Scores
Credit scores, unlike reports, aren't free. Your credit score--a number between 300 and 850--is determined by your credit history and shows lenders how much of a loan risk you are. You can get your credit score for a fee from one of the nationwide credit bureaus. An annual check on your credit history can usually give you a good idea of your status. You'll also want to check before making a major purchase, such as a new car or home. Knowing your credit score when necessary (considering how bad credit affects your life) is very valuable; don't let a small fee inhibit you from requesting this information.