What Does "Free Credit Report" Really Mean?

by Brandi Mankiewicz, Contributing Writer   

You've seen the television commercials and heard the advice. Getting copies of your credit report and knowing your credit score is an important part of personal money management. It can save you money in the long run and help prevent identity theft.

It seems like someone is offering you a free credit report everywhere you turn. Who should you listen to? Who can you trust? Here's some basic information that will help you get started monitoring your own credit:

How many free annual credit reports am I entitled to each year?

The Fair Credit Reporting Act (FCRA) enables you to receive one free copy of your credit report every 12 months from each of the nation's three major credit bureaus: Equifax, Experian and TransUnion. These are the companies that provide your credit information to third parties like employers, lenders and credit card companies.

How do I get my free credit report?

You can request your free reports through AnnualCreditReport.com, a site created cooperatively by Equifax, Experian and TransUnion. You can also call 1-877-322-8228 or print out and mail the request form found on the website. These are the only official ways to get your free reports from these three credit bureaus.

What's in my free credit report?

You'll receive most of the same information that would be provided to a third party: details about the loans you hold, your credit card balances and payments, a list of anyone who requested credit information about you, and so on.

Is anything important missing from my free credit report?

Yes: your credit score. Properly called the FICO^® score, this is a three-digit number that represents how creditworthy you are. Each credit bureau uses a different formula to determine your credit score, but in all cases a higher number is better. Each credit bureau will provide your score to you for an additional fee.

Free credit reports are a worthwhile tool for personal credit management. Take advantage of them, but remember: AnnualCreditReport.com is the only official site sponsored by all three major credit bureaus.