Posted on: Tuesday, March 8, 2005
Calling for credit reports advised
| • | Some advice when requesting report |
By Catherine E. Toth
Advertiser Staff Writer
It sounds easy enough.
Go online, open a Web site and click your way to a free credit report.
But the proliferation of Web sites peddling related products in recent months is causing confusion among consumers who may wind up spending money on something that is provided free.
The three major credit reporting agencies — Equifax, Experian and TransUnion — are required to provide consumers free credit reports annually under the Fair and Accurate Credit Transactions Act of 2003. Resident of Hawai'i and other Western states were the first to qualify for the free reports, as of Dec. 1. The rest of the states are being phased in throughout the year; residents in all states will be eligible by Sept. 1.
To get a free credit report, consumers can log on to www.AnnualCreditReport.com, the official Web site created jointly by the three credit reporting companies.
But other Web sites, including the popular www.freecreditreport.com, offer more than just the credit reports. Many of them are selling credit-monitoring plans, credit scores, fraud prevention programs and other products.
"Don't get roped into any of that," advised Wendy Burkholder, executive director for Consumer Credit Counseling Service of Hawai'i. "They're pricey and often hard to bail out of."
The concern about identity theft is another reason to be careful about where you order your credit report.
In fact, the World Privacy Forum, a nonprofit organization focused on consumer education in technology and privacy, recommends consumers who qualify for the federally mandated free credit reports call instead of click.
"Calling the toll-free number exposes consumers to fewer potential hazards than ordering online," the organization posted on its Web site, www.worldprivacyforum.org. "Consumers who try to use the official online site ... may encounter numerous challenges, some of them potentially serious."
The World Privacy Forum has identified and confirmed 96 domain names that are close misspellings of the official site. Of these, 28 domains are owned by Experian; 68 owned by other individuals. Last month at least 50 sites were active and many of them were calling their home pages "official."
"This whole thing — to access it online for free — is so new, consumer protectors are concerned that there will be identity thieves trying to take advantage of the situation and impersonate the site," said Steve Levins, executive director of the state Office of Consumer Protection.
But that shouldn't stop people from getting their credit reports — at least once a year.
Lynne Matusow, a Chinatown resident, ordered her credit report over the phone — she didn't trust the Internet — on the first day Hawai'i residents were eligible. She got all three credit reports within weeks.
"Basically, I did it because it was advised that we do," Matusow said. "And if there was anything bad on the report, I wouldn't know about it unless I got one of them."
There weren't any errors on her report, though she was surprised by the amount of information provided by all three credit reporting bureaus, from a canceled credit card to a previous home address that went back more than 15 years.
"There were no surprises," she said, "but I was surprised at how far back some of this stuff went. It's interesting."
Having free access to these reports is useful for people applying for loans. The reports list your credit history, how you pay your bills and what lines of credit are open. It also shows if you've been sued, arrested or filed for bankruptcy.
But most Americans haven't taken advantage of this service.
Official federal Web site: www.annualcreditreport.com More information about consumer rights: www.ftc.gov/credit
World Privacy Forum: www.worldprivacyforum.org
To request your credit report by phone, call: (877) 322i8228
— Catherine E. Toth "It's important to know what's in there so you have a clear indication of your probability in getting the kind of credit you need," Levins said.
It's also a good idea to confirm that the information in your credit report is accurate and up-to-date. Burkholder recommends people check their credit reports after any life-altering event such as death of a partner, marriage or divorce.
Fixing errors is relatively easy, she said. The three credit reporting bureaus allow consumers to report mistakes online. Otherwise, people can put their disputes in writing and the credit agency is required by law to address those concerns.
And with identity theft on the rise, Levins said checking your credit report for any fraudulent activity would be wise.
Reach Catherine E. Toth at ctoth@honoluluadvertiser.com or 535-8103.
According to a survey done by Experian and The Gallup Organization, 48 percent of Americans have never checked their credit report. Numbers specifically for the Western states were not available.
Learn More
| Some advice when requesting report
It may be a hassle, but getting your credit report is a good thing to do at least once a year, experts say. Here are some tips to making it as stress-free as possible: • Use the official site: Only order your free credit report through the official Web site — www.annualcreditreport.com — or call (877) 322-8228. You can also request a report in writing to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The three participating credit reporting bureaus are Experian, Equifax and TransUnion. • Be wary of solicitations: Ignore e-mail messages hawking free credit reports, even if they advertise the official Web site, said Steve Levins, executive director of the state Office of Consumer Protection. The site isn't supposed to generate soliciting e-mails to consumers. So if you receive a message about free credit reports without requesting it, hit delete. "It's most likely a scam," he said. "My recommendation would be to ignore it." • Be prepared to answer personal questions: To obtain a report, you will have to provide proof of your identity — Social Security number, birth date and previous addresses, for example. Then, the three agencies will ask you to confirm information from your personal credit report such as the monthly payment on your car loan or bank account numbers. You are able to access your credit report if your answers match up with those found in your report. • Report errors immediately: You can file disputes with the information in your credit report in writing with the credit reporting bureaus and the companies or agencies that provided the incorrect information. The agency, by law, has to contact the provider of the disputed information to see what happened. If the provider is found to be correct by the agency, consumers have the option to include an explanation about their disputes with their credit reports. • Avoid "credit repair" services: These just lure consumers to spend money on a service that can't actually "fix" your credit — if the information in your report is accurate. The only way to establish a good record is by paying your bills in full and on time. • Consider buying your credit scores: Your credit scores — the number used by lenders to help determine if you will pay off your loans on time — determine your qualifying for credit. Experts say knowing your number — and employing ways to improve it — is important, especially when you're applying for a loan. — Catherine E. Toth |
