Getting a copy of your credit report is easy, and free

Once again, Rhode Islanders, it’s time to get a free copy of your credit report.

Two years ago this month, residents of this and many other East Coast states became eligible under federal law to obtain a free copy of their personal credit report from each of the three big national credit reporting companies — Equifax, Experian and TransUnion.

The law generally gives you the right to get one free copy every 12 months. So if you took advantage of this opportunity in September 2005, and again in September 2006, now’s the time to do it again.

Don’t fall for those offers on TV, the radio or online. They typically charge you — if not for the credit report itself, then for all sorts of related services.

Instead, go directly to the clearinghouse that the credit reporting companies have established to handle requests for free credit reports according to federal law. Contact the clearinghouse using any of the following methods:

•Call toll-free at 1-877-322-8228.

•Online, use this Web site:

www.annualcreditreport.com

•Use the Web site above to print out a request form. After you complete it, mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

A credit report — sometimes called a credit file — is the official record of your personal credit history. It includes details on your credit card accounts, car loans, mortgage loans and other items.

Why bother checking?

There are two main reasons, said Claudia M. Kerbel, director of outreach at the University of Rhode Island’s Center for Personal Financial Education:

Identity Theft: In general, identity thieves may try to use your name, Social Security number and other personal information to create false identities for financial misuse. So check your credit reports carefully to make sure nobody has obtained credit in your name without your approval. Be sure to check even if you don’t actively use credit, Kerbel said in an interview at URI’s Providence campus last week.

Borrowing Plans: If you plan to take out a loan in the near future, you need to know, in advance, what your credit report looks like. That’s because lenders use the information in credit reports to help decide whether to give you credit, and on what terms. Others may use the information to decide whether to rent an apartment to you, hire you for a job or provide you with an insurance policy.

Once you receive your report, check it carefully for errors. For example, make sure the report accurately shows your personal information — including your name, address and Social Security number.

Also check to see how many accounts are open in your name, and what the balances are, said Angela M. Thomson, former head of the Rhode Island chapter of the Financial Planning Association, a trade group for financial planners and others.

“It’s interesting to see all the credit you have out there,” in accounts you may not remember you had, said Thomson, who runs Coastal Financial Planning Inc., a fee-only financial-planning firm in Lincoln.

For security purposes, consider closing old accounts, especially those with low credit limits that you may have opened years ago and haven’t used since, Thomson said. (Just remember that closing accounts could have an impact on your credit score.)

Also make sure that the report accurately reflects your current circumstances. For example, your credit report may show that you still owe a debt that you’ve already paid, Kerbel said. “Sometimes, the message that you paid [a debt] doesn’t get through” and isn’t reflected on your credit report, she said.

A few other points:

•If you’re married, each spouse should request a copy of his or her own credit report. That’s because credit reports are kept on individuals, based on Social Security numbers, Kerbel said. (Information on joint accounts should show up on the reports of both spouses, she said.) “Each spouse should check their own” report, she said.

•Check your credit report with all three credit reporting companies, not just one. Each may contain different information, Kerbel said. For example, a creditor may report to one credit reporting company, not to all three, she said.

Remember, though, that you’re generally allowed just one free copy every 12 months from each of the three big credit reporting companies. So if you order a copy from all three now, you’ll generally have to wait until next September to obtain a free copy again.

Instead, consider staggering your requests, Kerbel suggested. For example, order a copy from one company now, a copy from another company in January, a copy from the third company in May.

If you go that route, remember to make a note on the calendar so you won’t forget to place the orders later. “You just need to stay on top of it if you stagger,” Kerbel said.

•Consumers in some states, such as Massachusetts, are also eligible for a free credit report based on their own state laws.

TODAY’S TIP: For more information about credit reports, credit scores, identity theft, fraud alerts, and related topics, call the Federal Trade Commission’s consumer response center toll-free at 1-877-382-4357. You may also write: Consumer Response Center, Room 130-A, Federal Trade Commission, 600 Pennsylvania Ave. N.W., Washington, D.C. 20580. Or use this Web site:

www.ftc.gov

Neil Downing is a Journal staff writer and author of The New IRAs and How to Make Them Work for You. Questions about your money matters? Call us at 1-401-277-7484 and leave a message, or e-mail:

moneyline@projo.com

Sorry, no personal replies; as many questions and issues as possible will appear here.