Get a Free Government (.Gov) Credit Report

August 25, 2009Credit Reportby EconomyWatch

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Your search for a free credit report on the Internet may yield countless results from companies that are not only offering free reports but also services that can erase all negative credit information from it. These companies are nothing but scams. To protect you from the credit report scams on the net, the government has enforced the Fair Credit Reporting Act. This law mandates the three key credit reporting agencies (CRAs), Equifax, Experian and TransUnion, to provide free annual credit reports once a year to anyone who requests for them. However, the only federal website that should be used to get a free government (.Gov) credit report from any of these CRAs is AnnualCreditReport.com.

 

Get a Free Government (.Gov) Credit Report: Why Get a Report?

There are several reasons for you to exercise your right to get a free government (.Gov) credit report:

  • Save on money: Credit card issuers verify your credit report to check the extent of risk they would be taking if they grant your request for a new credit line. Their decision on your loan request and the applicable interest rate are based on how faithfully you have repaid your loans in the past. If your report shows a default or delay in loan repayments, the lenders might charge higher interest rates. But what if the information in the report is incorrect? You would be unnecessarily paying a high interest rate. You can save this money by checking your credit file before you apply for a loan or credit line.

  • Save the embarrassment of being denied credit or a good job: If your credit file is tarnished with bankruptcy, charge-offs and delinquencies, financial institutions and lenders can deny your request to issue a new credit line. This may severely jeopardize your future plans and even hamper your living status. Prospective employers may also reject you. But, what if you are suffering from all this despite being regular with payments? Identity theft and fraud could be the possible reasons for your bad credit report in this case. You can save yourself all these hassles and embarrassment by getting a free government (.Gov) credit report and checking it on a regular basis to identify accounts that are not yours.