[L]earning how to check your own credit is one of the wisest financial decisions you can ever make. You should look at your credit reports at least once a year, even if you are the type of consumer who deliberately avoids taking out loans or getting credit card accounts. Things that seem minor like a significantly late electric bill can actually damage your credit score. Also, identity theft is on the rise. Whether or not you regularly use credit, someone could take your Social Security number and open new accounts in your name.
Some companies including the “big three” credit bureaus Equifax, Experian, and TransUnion are eager to charge you money to access a copy of your credit report. But every American is entitled to one free copy of his credit report each year. Not only can you get free copies from Equifax, Experian, and TransUnion, but also you can get complimentary credit reports from a variety of smaller agencies such as Innovis, ChexSystems, and TeleCheck. If an individual or company denies you an account based on your credit score, you can get additional free credit reports.
AnnualCreditReport.com is the only truly reputable source of free credit information, according to the Federal Trade Commission. Many websites claim to offer easy ways to check your credit. Unfortunately, virtually all of these websites make money by selling credit monitoring services. Once your “free trial” ends, your credit or debit card will very likely be charged for a monthly or annual credit monitoring membership fee.
AnnualCreditReport.com will never ask for your payment information, but will verify your identity for your protection. Generally, you must provide your full name, Social Security number, current address, any recent addresses, and your date of birth. You will need to answer two to four multiple-choice questions about your current or past lenders, street addresses, or names of family members. Then you can view and print your credit reports online. If you could not pass the online verification process, you will receive your free reports via postal mail.