Tuesday, September 06, 2005
Editorial: Take advantage of free credit reports
Virginians should check reports annually to correct errors and spot identity theft.
From the RoundTable blog
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With identity thieves lurking in virtual shadows, consumers cannot be too careful keeping track of what the three big credit bureaus think they know about them. Virginians can finally do that for free by demanding copies of their credit reports.
Under congressional mandate, TransUnion, Experian and Equifax, the three nationwide consumer credit bureaus, must provide consumers with free copies of their credit reports upon request. The reports are available online at annualcreditreport.com or by phone at (877) 322-8228.
The process takes only a few minutes, and an additional $5 will purchase the credit score, which tells a lender the risk level of an applicant.
Virginia is among the final group of states admitted to the program. West Coasters received access last year.
The data in a credit report can make or break a person when it comes to taking out a loan, renting an apartment, buying a house, getting a credit card or just about any other major financial transaction. For those with a poor credit history, lenders may charge a higher interest rate or deny a loan application outright. Those who have been good about paying bills on time can expect them to line up to do business.
Unfortunately, credit reports are not always accurate. Mistakes can creep in, leaving a consumer looking like a deadbeat. Even worse, an identity thief might trash an unwitting victim's good name.
The best way to fight against such threats is to check the reports periodically. Mistakes can be corrected, albeit not always easily, and identity thieves can be halted, but only by knowing of their invasions.
Like it or not, the credit bureaus compile reports on every consumer in the nation, each of whom should assume responsibility for making sure the bureaus get it right. Virginians finally have the right tool to do it.
