Credit & Money Management
A Peek at Your Personal Dossier
Soon you can get a free credit report. Here's why you shouldn't wait.
By Pat Mertz Esswein, Associate Editor
From Kiplinger's Personal Finance magazine, November 2004
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REPORT ROLLOUT
When your report will be free
Will it be like free beer -- will everyone want some? That's the question posed by Helen Goff Foster, a Federal Trade Commission lawyer, about the upcoming arrival of free credit reports. To slow down the rush to the bar, the new rule will be rolled out gradually across the country.Starting December 1, residents in the following states can contact credit bureaus for free reports: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming.
On March 1, the freebies spread to Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin.
Residents in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee and Texas get the green light June 1.
Those in Connecticut, Delaware, the District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia and West Virginia bring up the rear. They get free access starting next September.
You're already eligible for a free copy of your report from each of the credit-reporting bureaus if you have reason to believe your file contains inaccurate information as a result of fraud or if you have been the subject of an adverse decision, such as denial of credit, insurance, employment or rental housing, within the past 60 days that could have been based on information in your record.
Several states are ahead of the federal government in mandating a free look. Residents of Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey and Vermont already get free access to their reports.
ALERT SERVICESAn offer you can refuse
Search "free credit report" online and you'll pull up dozens of come-ons. But unlike the soon-to-be really free annual look at your credit record, a glance at your search results proves that these free reports come with a big string attached -- a 30-day free trial of a credit-monitoring service that automatically morphs into a paid service unless you cancel it.
Are these services, which alert you to changes in your file, worth the $45 to $120 they cost each year? "If you've been a victim of identity theft or are very concerned about it, a credit-monitoring service may give you peace of mind," says Helen Goff Foster, a Federal Trade Commission lawyer. "But for the average consumer, it's probably overkill."
If you're worried that an annual peek isn't enough, a more cost-effective strategy is to order your credit report quarterly.