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The Advantages of getting Free Credit Reports

By Janet Lacey
Published: Monday, January 25th, 2010

The law does not allow any entity both individuals and companies to remove accurate and timely negative information that appeared in an individual’s credit report. Those who claim that they can do so are simply profiteering from those who lack knowledge that the Federal government has already standardized the processes in doing such actions.

The Federal government of the United States of America has passed the Fair Credit Reporting Act or FCRA to cater to the needs, inquiries and objections of credit account holders regarding their credit worthiness rating. This law was generally made to protect and assist credit account holders from possible adverse actions that he or she may experience because of possible inaccuracies in the credit history recording of credit bureaus.

Every citizen of the United States is entitled to access annual free credit report from each of the three major credit bureaus. Equifax, Experian and Trans Union are obliged to give these reports to anyone who requested for theirs either through telephone, internet and snail mail. The free credit reports as said before are the protection provided by the government to answer possible adverse actions against the credit account holders. The implied adverse actions in this law include denials on credit card applications, employment, loans, and installment plans.

Individuals who would want to get their free credit report under the pretense of adverse actions need to file their request to the credit bureaus within 60 days after the date that the action has been done. In times of unemployment, the unemployed credit account holder can request for his or her report from the credit bureaus 60 days before the targeted date to look for a job. Those who are on welfare, victims of identity theft and fraud are also included in the mandated coverage of this law. The three major credit worthiness rating companies have recently provided a centralized website for those who would want to claim their reports. This new centralized website was made to ease the possible hassles of looking up these credit bureaus in their different websites.

Even if this law is fully applicable in all states of America, there are still credit account holders who hire private companies to the application of credit reports for them. A lot of individuals are spending to get credit reports which are theirs in their own right. The annual free reports have no additional fees like service and administrative fees. The credit bureaus are only allowed by the law to charge a maximum of $10 for those who want to get an additional report within twelve months after they have received their free report.

Exercising this right allows many individuals to consolidate their credit reports so that they can compare among the credit history recording techniques of the three major credit bureaus. On the other hand, they can divide their three free reports and request for it in spread dates along the year to be able to monitor possible rooms in improving their credit worthiness rating. Ultimately, by exercising this right credit account holders are given the chance to find ways of improving their credit scores, since it is just the numerical equivalence of the report.

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