Why you should check your credit every year
Checking your credit report and credit score each year helps you understand your financial situation from a lender’s point of view. Lenders use your credit history to judge risk, set interest rates, and decide whether to approve loans. When you review your report regularly, you stay informed and catch problems early.
An annual review also helps you track progress over time. You can see how your habits affect your score and adjust before applying for a mortgage, car loan, or credit card.
Your right to a free credit report
The Fair Credit Reporting Act (FCRA) gives you the right to receive one free credit report every year from each of the three major consumer reporting companies: TransUnion©, Experian©, and Equifax©.
You can request your reports online, by phone, or by mail. To verify your identity, you will need to provide your name, address, Social Security Number, and date of birth. This step protects your information and prevents fraud.
You can request all three reports at the same time or spread them out during the year. By spacing them out, you can review your credit history up to three times per year without paying anything.
When you qualify for additional free reports
You may qualify for extra free credit reports in certain situations. These include cases where a lender, insurer, or employer denies your application based on your credit report. In that situation, you must request the report within 60 days of receiving the notice.
You may also qualify if a lender or insurer offers you unfavorable terms because of your credit. If you believe your credit report contains incorrect or incomplete information, you can request another free copy to review and dispute errors. People who receive public welfare assistance may also qualify for additional free reports.
Paid credit reports and legal limits
After you use your free reports, you can still purchase credit reports directly from TransUnion©, Experian©, or Equifax©. By law, these companies cannot charge more than $12 per report. Paid reports can help if you want frequent updates or detailed monitoring.
Important warning about unauthorized websites
Many websites claim to offer “free” credit reports but require a credit card and enroll you in paid memberships. These sites often make cancellation difficult and charge recurring fees if you miss the deadline.
Always use authorized sources when checking your credit. If you believe a company has misled or charged you unfairly, contact the Federal Trade Commission right away. Staying informed and cautious helps protect both your credit and your wallet.
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