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Free Credit Report Ads are Under Scrutiny

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You know those catchy commercials where some guy is telling you that you should order a “free credit report” to protect your credit.  Well, so does the Federal Trade Commission, and they’re not too happy about them.

In particular, they think using the term “free” by these companies is misleading. Many people don’t realize that these free credit report companies are not merely offering a free credit report; in fact, they are trying to sell credit monitoring services.

Credit Monitoring Services for Sale

In fact, if an individual orders a “free” credit report through one of these companies they are often lured into signing up for credit monitoring services. Credit monitoring services are essentially memberships that charge monthly fees to update consumers on any credit activity taking place on their credit report.

These memberships are often automatically withdrawn from an individual’s account on a monthly basis and, because many consumers are unaware of how this membership works, they end up being charged for a service that they simply don’t want.

Consumers’ Rights regarding Annual Credit Reports

The FTC seems to have the biggest problems with these commercials because the people calling these companies are simply looking for a free copy of their credit report. What many people don’t realize is that everyone is entitled to a free copy of their credit report on an annul basis from all three of the nation’s credit reporting agencies (TransUnion, Experian and Equifax). Individuals are also entitled to a free copy of their credit report anytime they are denied credit.

Are Credit Monitoring Services Right for you?

Credit monitoring services are memberships that closely monitor an individual’s credit report for any and all signs of activity. The purpose of these sights is to catch unauthorized activity as soon as it occurs. For some individuals, these services may be quite helpful and may help provide peace of mind. However, for most individuals, a quick check of their credit on an annual basis is all they need to keep track of their credit report.

Protect your Credit: Order a Copy of your Credit Report Today!

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What you can’t see won’t hurt you, right? Wrong!

For many of us, ordering a copy of our credit report is downright frightening, as we simply don’t want to deal with the details of our credit report and what is may or may not contain.

However, monitoring your credit report is one of the smartest things you can do to maintain your credit score and work towards an excellent FICO score.

The key is to remain proactive when it comes to your credit. Just think of how satisfying it would be to have a clean credit report, free of errors and discrepancies!

It’s Never Been Easier…

The fact of the matter is that it has never been easier to get a hold of your credit report, as the three, national credit reporting agencies – TransUnion, Experian and Equifax – are all obligated to offer consumers a free copy of their credit report every year.

So, what are you waiting for? Bite the bullet and take a good, hard look at your credit report.

Once you have a copy of your credit report, it is important to check it carefully and immediately contact the appropriate credit bureau if you find any inaccuracies or errors. It is important to understand that the information found on each of the three credit reporting agencies may be different, so you may find an inaccuracy on one and not the other.

Making Changes

For many consumers, examining their credit report is a difficult task, mainly because they may have to take a good, hard look at their credit card debt and of their spending habits. Although this may be a difficult thing to do, know that it is an important step to recognizing the state of your credit and for making the necessary changes for the future.

For many of us, ordering a copy of our credit report may be a necessary step to changing our spending habits. After all, it is a lot easier to ignore your credit problems than it is to face them head on.

Take advantage of your free credit report and start down the road to financial responsibility – today!

Skimmer Credit Card Fraud on the Rise

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Did you know that a thief can be using a credit card in your name, with your account number, right now?

Don’t think you’re at risk? Think again.

Have you ever handed your card over to a waitress, store clerk or hotel staff member when making a credit card purchase? If you answered yes, then you are at risk of being a victim of credit card “skimming.”

A skimmer is a small, hand held device (often as small as a pager!) which enables a thief to immediately obtain your credit card information in just seconds.  The scenario usually plays out like this: the employee takes your card and leaves to run your credit card for your purchase. With just an extra swipe of your card into the skimmer, the thief now has your name and credit card information.

The thief then usually downloads this information onto a computer and uses it for a variety of fraudulent activities. Many thieves are able to duplicate counterfeit cards and then distribute them for use worldwide.

This problem is huge and getting bigger by the day. In fact, it is estimated that skimming costs consumers more than $1 billion each year.

There are a few things you can do prevent a skimmer from damaging your credit:

• Never let a clerk, waitress or other type of employee walk away with your credit card. Pay cash at restaurants and other venues where your credit card must leave your site.
• Keep a close eye on your credit card bill so that you can catch fraudulent activity before it gets out of hand and ruins your credit score.
• Immediately contact the credit card company in question if you notice any unauthorized charges on your credit card.
• Immediately contact the three, major credit reporting agencies – Equifax, Experian and TransUnion – if you suspect any fraudulent activity and ask them to put a fraud alert on your credit report.

It is important to remember that, as a consumer, you must remain on high alert when it comes to your credit. Stay informed, read your credit card statements carefully, and immediately contact the appropriate sources if you suspect any kind of fraudulent activity on your credit card.

Common Questions about your Credit Report

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We all know that we must stay on top of our credit to maintain a strong FICO score, but how many of us actually do just that?

Your ability to obtain a mortgage, purchase a car or secure a credit card all relies on your credit rating. It is therefore of the utmost importance that you order a copy of your credit report.

Luckily, under the nationwide Fair Credit Reporting Act (FCRA), which is protected by the Federal Trade Commission (FTC), you are entitled to a free copy of your credit report from all three of the consumer reporting agencies – Equifax, TransUnion and Experian – once a year.

Now that you are armed with this information, you can begin the process of reviewing your credit report.

Q: What type of information appears on my credit report?

A: Your credit report should contain your personal information, such as your name, your address and your source of income, as well as all sources of credit. It will also report any bankruptcies, arrests or cases in which you were sued.

Q: What is a typical credit report comprised of?

A: The four sections of a standard credit report include: your personal, or identifying, information; your credit history; public records; and inquiries.

Q: What are public records?

A: Public records include such things as bankruptcies and law suits.

Q: What are inquiries?

A: Every time you apply for credit of any kind, it is typically recorded as an inquiry. Excessive inquiries do not look very good in the eyes of a creditor; therefore, too many inquiries can lower your credit score.

Q: Do I need to look at my credit report through all three credit reporting agencies, or is the information the same?

A: Each credit reporting agency has their own set of information, as well as their own credit rating for you, so it is important to review your credit report through all three credit reporting agencies.

Q: Who uses the information on my credit report?

A: The three credit reporting agencies – Equifax, TransUnion and Experian – sell this information to creditors, insurers and even your employer. They then use this information to determine your eligibility for credit cards, insurance and employment, among many other things.

Q: What if I find a mistake on my credit report?

A: If you find a mistake or an inaccuracy, you must immediately contact the credit reporting agency and file a report. It is then the credit reporting agency’s duty to research the problem and correct it, if needed.