How To Get Your Free Credit Report

You're entitled to one free credit report per year, here's how to go about getting it.

Under the Fair Credit Reporting Act, you're entitled to one free credit report every year. Here's how to go about getting it.

They say the best things in life are free, and these days, a free credit report is just what we need. Many people are finding that in order to get a good deal on a loan, they need a pretty stellar credit score. And the only way to know your credit score is to check your credit report.

Seven Steps To A Higher Credit Score

Not only will reviewing your credit report help you get an idea of what your credit score may be (you do have to pay for your actual credit score), it will also allow you to confirm that all the information is correct. One small mistake on your credit report could seriously affect your credit score and potentially cause your rates to skyrocket.

There is only one place to get your free, federally mandated credit reports, also called an "educational credit report," which this is AnnualCreditReport.com. You are allowed a free credit report from the three major consumer reporting agencies in the U.S." Experian, Equifax (nyse: EFX - news - people ) and TransUnion. These sites also offer credit reports, but you have to pay for them. When you go to AnnualCreditReport.com, you are given the option to get all three reports at once or one at a time. Choose to get all three reports at once. Gerri Detweiler, author of the book Stop Debt Collectors, explains that when you apply for a loan you probably won't know which report a lender will use. So if there is a mistake on one, you'll want to know.

You've probably seen commercials for a "free credit report" (you may recall that guy playing his guitar in the seafood restaurant lamenting his predicament). Be aware that these companies will give you a free credit report and/or credit score initially, but they will also most likely also ask for your credit card number. If you don't cancel within a certain time, they'll charge you for membership.

Checking your credit report is called a soft inquiry, and you can check your credit as much as you want without it negatively affecting your credit score.