Obtaining a copy of your credit report is easy and, thanks to Uncle Sam, it soon will be free.
That's welcome news since it's a good idea, especially before applying for a loan or other credit, to know where you stand by checking your credit report (which details how well you pay your loans, bills and credit card purchases).
Under legislation passed by Congress in December 2003 and new Federal Trade Commission rules, consumers can request a free copy of their credit report every 12 months.
Once you obtain your credit report, visit yourcreditcounts.com for tips on how to read and understand it - and on how to improve your credit standing, if necessary.
This Web site, sponsored by leading financial services company HSBC - North America, provides new tools and other valuable information about borrowing, saving and credit management.
The three major national credit bureaus - Equifax, Experian and TransUnion - are establishing a centralized source for accepting consumer requests for the free reports. That source will include a dedicated Web site, a toll-free telephone number and a postal address.
The free credit report program rolls out across the country beginning Dec. 1, 2004, when consumers in 13 Western states can start requesting their reports. Residents of 12 Midwestern states will become eligible on March 1, 2005; 11 Southern states on June 1, 2005; and the remaining 14 states, the District of Columbia, Puerto Rico and all U.S. territories on Sept. 1, 2005.
It's a good idea to time a request for your credit report well before you apply for a major loan, advises HSBC. Check your credit at least three to six months before applying for a home mortgage; for an auto loan, check your credit and line up financing with your bank or credit union before you start shopping. This will allow you sufficient time to review the report and correct any errors you find.
