Credit reporting is important for the consumer in order to monitor the credit history. You can make essential financial decisions when you assess your credit history including borrowing loan facilities, spending, using your credit card and managing debts. Apparently, credit history or credit score affects every other aspect of your life such as employment, insurance rates, and loan facility access.
According to the Fair Credit Reporting Act (FCRA), every consumer is entitled to a free copy of the credit report every year from the three main credit reporting agencies, which are Experian, TransUnion, and Equifax. However, nowadays, there is increased number of companies that are offering credit reports. Some claim that they offer the services for free but there is a catch here.
What happens is that you sign up for the free reporting, which may be offered within the first month and after that you are subjected to paid credit monitoring programs that may cost somewhere between $19 and 29 dollars every month. This amount is certainly high for a consumer who is trying to make ends meet.
Although it is very important to monitor your credit report, paying for such monthly fees could cost you a lot of money in the long run. If you pay $19 per month, after 12 months, you will have parted with $228. This is certainly a large amount of money to spend on something that is offered for free.
A credit report is very important because it contains your information including your bills payments, loan facilities, foreclosures, and bankruptcy cases you have had in the past. It also contains information such as arrests and other sensitive information. The credit reporting companies usually sell this information to interested parties such as employers, insurers and businesses, which use it to evaluate the worthiness and integrity of a person for services such as employment, renting houses, insurance, and loan facilities.
When you deal with these other reporting companies that are not recognized, you may end up risking your personal information being sold to marketing companies and spammers. It is important to establish the authenticity of the credit reporting company you engage with. Otherwise, you may need to use the three main credit reporting agencies to get safe credit history reporting.
The big challenge is that since the three main reporting agencies only issue a free copy once in every 12 months, it means that if you want to monitor your credit report somewhere within the year, you may need to pay. It is worthwhile making occasional visit to your report to examine if there are errors. If there are errors or disputes that you need to make, then it is better they are addressed in advance.
Waiting for the yearly copy of the credit report could put you into difficult situations especially if there are errors on the report. The three main credit reporting companies only provide the free annual credit reports through annualcreditreport.com. This means that you need not visit their website to request for your report but go to this website where you can get a copy of your report.