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Free Consumer Credit Report

By: EconomyWatch Date: 26 August 2009

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A free consumer credit report is an invaluable tool as it enables individuals to evaluate their credit report(s) conveniently. A free consumer credit report can be requested from all three major credit bureaus, namely:

Equifax
Experian
TransUnion

To make the request, you can just sign-up on AnnualCreditReport.com.

Free Consumer Credit Report: Components

The information in a free credit report can be classified as follows:

Personal data: This includes:

name
social security number
address (current and previous)
employment history

This section of the free consumer credit report is most vulnerable to identity theft.

Summary of credit history: This includes:

· Number of accounts, including active and closed,

· Type of accounts, such as revolving, mortgage or installment,

· Number of credit report inquiries during the last 12 months,

· Nature of active accounts, outstanding or paid.

Comprehensive account information: It contains complete details of accounts, including:

account number
account type
date of opening
balance/status of each account

The account information section also offers the contact information of the creditor of each account. It also comprises accounts that have a negative credit history.

History of credit report inquiries: This includes:

Hard inquiries: Bureaus generate them when an individual authorizes a third-party to request a credit report copy. The number of inquiries within a 12 month period is considered for the calculation of FICO score. Many hard inquiries impact the score adversely.
Soft inquiries: These are generated when the credit reports are requested by the current creditors. The inquiries are carried out by lenders to check the status of the individual, for providing additional credit or special offers. Such inquiries are not included in the credit report. So, it does not affect the credit score.

Legal issues: In case of payment defaults following which an individual’s account has been sent for collection, the information about the delinquent account(s) is mentioned in this section. It elaborates legal issues, including liens and wage garnishments.

The final segment of a free consumer credit report contains information about how to dispute information on the credit report. If an individual disagrees, s/he has the right to challenge it. The federal law states that the credit reporting agencies must respond to the dispute within 30 days. However, legal matters are usually undisputable. Information such as foreclosure and bankruptcy stay on the credit report for at least seven years.