If you are in the market for a new or used car and you’ve been using the internet as a research tool for any length of time, you have probably been bombarded by ads for a free credit report. But do you really need this and, more importantly, is it really free?
What is a Credit Report?
A credit report is simply a record of your borrowing and repayment history. Banks, credit card companies and other places that extend you credit report how you paid to as many as three of the major credit reporting agencies in the United States – Equifax, Trans Union and Experian. This type of credit history is known as Applied For Credit History. Your credit report may also contain Not Applied For Credit History. These are items such as bad checks, medical bills and any tax liens or civil judgments. If you pay all your bills, you will not have Not Applied For Credit History in your credit report.
Why do I need my Credit Report?
Viewing your credit report will let you know if there is anything that they contain that is inaccurate. Much of this wrong information will lower your credit score. In addition, knowing your credit score and history will tell you whether or not you qualify for a regular car loan or if you need to find a dealer that specializes in bad credit car loans. If you find that you fall into the bad credit car loan category, the people here at Auto Credit Express will help you get car financing. Simply go to our website at www.lotpro.com/finance to fill out an application in the privacy of your home.
Is there really a Free Credit Report?
The saying goes that “there is no such thing as a free lunch”. But in this case, the Free Credit Report actually is free! Way back in 1970, The United States Congress passed the Fair Credit Reporting Act that, among other things, ensured that consumers would have access to the information in their credit files. The law was amended in 1996 and in 2003 a new law (the Fair and Accurate Credit Transactions Act or FACTA) amended the act to require credit reporting agencies to furnish consumers with 1 free credit report per year per agency as well as access to their credit scores, for a reasonable fee.
How do I get my Free Credit Report?
There are three ways to receive your free credit report. You can call the toll-free numbers of the 3 agencies, you can write the three agencies or you can go to this website: www.credit.com
Once there, you will be asked to furnish them with information that establishes your identity, then you can view and download the report immediately.
For more detailed information on the Fair Credit Reporting Act, follow this link to a Consumers Union article: http://www.consumersunion.org/pub/core_financial_services/000745.html
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