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I always point to AnnualCreditReport.com as the go-to place to view credit reports for free, but it’s got some competition from companies that use the word "free" a little too freely, and entice with funny jingles on TV commercials. You’ve probably seen at least one of them. Well, the Federal Trade Commission’s Bureau of Consumer Protection is trying to reach consumers with some jingles of its own to warn us not to take the bait. Here's one:
“Despite the deceiving jingles and musical claims of some TV commercials, the only authorized source to get your free annual credit report under federal law is AnnualCreditReport.com,” says Monica Goldenberg, a spokeswoman for the FTC’s Bureau of Consumer Protection. “Other sites require users to pay hidden fees or agree to additional services in order to get a free credit report. If consumers don’t cancel the service during a short trial period, they’re likely to pay membership fees. The FTC encourages consumers not to pay for something they can get for free.”
Know this: The Fair Credit Reporting Act guarantees consumer access to a free credit report from each of the three nationwide reporting agencies—Experian, Equifax, and TransUnion—every 12 months.
And if you’ve heard that checking your own credit report will hurt your score, don’t believe it. It’s a myth. What can hurt your score is if you ask a lender to check your score. “When a lender pulls your credit, it generates what’s known as a ‘hard’ inquiry—and those are counted against your score,” writes Liz Pulliam Weston in an updated edition of her book, “Your Credit Score, Your Money & What’s at Stake: How to Improve the 3-Digit Number That Shapes Your Financial Future.” Weston recommends you check your score with all three agencies at least once a year, possibly twice, given the prevalence of identity theft. Also, you should check your reports a few months before you plan to apply for a loan because it can take awhile to correct any errors.
Weston has lots of great how-to advice in her book. Look for upcoming posts on how to correct mistakes on your report and improve your credit score.
Have you fallen for the cute jingles?
