Keeping track of the information in your credit report can help you rectify inaccuracies, which can prove costly later. By monitoring your credit report regularly, you can also identify frauds or identity thefts that could be tarnishing your credibility. Moreover, constant monitoring enables you to identify your credit activities that are affecting your credit rating. This helps you manage and improve your credit ratings effectively.
Tracking credit reports regularly helps save money on interest rates and premiums when applying for a new credit line or insurance. However, as per the Fair Credit Reporting Act (FCRA), consumers can receive a free annual credit report from each of the three key credit reporting agencies (CRAs), Equifax, Experian and TransUnion, once a year. For constant credit monitoring, you would need to look for sources to obtain a cheap credit report.
Ways to Get a Cheap Credit Report
You can obtain a cheap credit report through the following ways:
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Get it straight from the source: You can approach the three CRAs directly to obtain a copy of your credit report. Approaching the source is always cheaper than procuring the report from a site acting as a middleman. You can individually request a copy from each of the three bureaus. Alternatively, you can visit sites that offer a centralized request form at a low cost.
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Register for special services: There are several sites that offer credit reports for free when you register for their credit monitoring or counseling programs. Look out for such websites and take advantage of this free offer, if you are interested in signing up for constant monitoring of your credit report.
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Understand that being thrifty is not the answer: Although there are numerous websites offering free credit reports, their offer is not always as free as it sounds. The offers could have strings attached, such as signing up for a free trial offer, which automatically turns into a paid service at the end of the trial period. Hence, you might end up paying a hefty bill if you do not remember to cancel your subscription before the trial period expires. Moreover, you might end up being on sites that act as a front for identity theft scams. While you might enter the requested information on the site thinking that you would receive a credit report, you might in effect be giving away valuable information to identity thieves.