Free Credit Report Online - What You Need to Know

For many concerned about their credit, there is confusion between the credit score and the credit report.

First, the credit score is derived from your credit report. In fact, it is likely that you will have three separate credit scores reflecting the information on your credit report from the three main reporting agencies: Equifax; Experian; and TransUnion. Since their information can be different, their scores will differ as well. This is why lending institutions will consider all the scores (based on their internal policy).

Second, you are entitled to get your credit report for free at least once a year. This can be done online with any of the three reporting agencies mentioned above. And, it is good practice to spread the request for each over 4 months to keep track of your credit history. That is, request a report from Equifax; then 4 months later, request a report from Experian; and then 4 months later, from TransUnion. All free reports.

And third, your focus should be on correcting any errors in your report. Removing errors will have an immediate positive impact on your credit score. Once that is done, then you would want to get your credit score if you are planning to obtain financing. The credit score will provide you with an idea of the cost you may face when seeking financing; such as, planning to get credit or a loan, or to renegotiate interest rates.

The other confusion is the cost for obtaining the credit score. Unlike the credit report (which is free once every 12 months per agency), the credit score is not free if you request it from the agencies directly. Some have applied to services that offer the credit score (they generally charge approximately $15 monthly). Understand that a service generally has a 7 day trial, after which you will be billed monthly until you cancel the subscription.

If you've applied for financing, the institution you've applied to will generally provide you with your credit scores from the three agencies cited above at no cost, if you request it (whether you're accepted our not). It is, as mentioned above, best to know your scores before seeking financing.

Free Credit Report Online:
Now, onto more practical matters. It is not unusual, unfortunately, to have the credit agency claim that you have already received your free report, and then require payment for your request. Here are some suggestions.

First, if you are routed to an out of country customer service support line, request immediately to be routed to an in country support line. This will save tremendous frustration when trying to resolve the problem.

The problem typically occurs when using a service like AnnualCreditReport.com which may be sending erroneous request information to the reporting agencies (Equifax, Experian, TransUnion).

Second, when talking to customer service from any of the three reporting agencies, request to obtain the free report online. This will avoid the delay in receiving the report, and supposedly lost reports in the mail.

And third, when dealing with Equifax, which seems to have a majority of the free report problems, their manned support line (as of January 2009) is: (888) 265-8807. It is advised that whatever agency you deal with, that you try to locate the manned line (as opposed to an automated line) to resolve issues quickly.

The author has an MBA in Finance and extensive experience with financial institutions. You can also check out his latest website on Free Credit Check which provides sources for credit reporting and credit scores, or Free Credit Report Onlinefor understanding your credit report information and what you can do to improve your score. Article Source: http://EzineArticles.com/?expert=R._Dodger