New Credit Reporting Law Provides Free Credit Reports

ROCKVILLE, MD. — In an effort to give consumers more control of their financial lives, the Fair and Accurate Credit Transactions Act was signed into law on December 4, 2003. One of the highlights of the bill is that consumers will be able to obtain one free credit report per year from all three major credit reporting bureaus, Experian, Equifax, and Trans Union.

 The free reports will be available in the coming year after the Federal Trade Commission and the credit bureaus work out details of the new law.

“Consumers have the right to know what their creditors are reporting about them, and this bill will hopefully make it easier for Americans to monitor their credit reports,” said Pam Rhode, president and co-founder of Myvesta.org, a nonprofit consumer education organization. “In addition to getting their free credit reports once a year, we recommend that consumers also purchase a consolidated copy of their credit report at a different time of year.”

While free reports from all three bureaus will arrive at different times and in different formats, a consolidated credit report contains information from all three credit bureaus in a side-by-side format.

“Since different credit bureaus report different things, being able to compare what each bureau is saying is extremely important,” Ms Rhode said. “Your credit report has become much more important in recent years. Lenders, insurance companies, and even some employers use it. A consolidated credit report will give you the ability to quickly and easily compare what all three bureaus are reporting. It’s the easiest and most effective way to get the total view of your credit standing.”

For more information on what your credit report means to you, or to order a consolidated copy of your credit report, visit Myvesta.org online.