By law, you have access to a free annual credit report. The Fair Credit Reporting Act (FCRA) of 1970, was originally written as an amendment to the Consumer Credit Protection Act of 1968, and enacted in 1970, guarantees you access to your credit report, for free, from each of the three nationwide credit reporting companies – Experian, Equifax, and TransUnion every twelve months. This Act is enforced by the US Federal Trade Commission and private litigants.

Consumer Reporting Agencies (CRAs) are entities that disseminate the information about consumers they have collected. This information is used for credit evaluations and a number of other purposes, such as employment. Besides the Big Three CRAs mentioned above, the FCRA also classifies dozens of other information technology companies which produce consumer reports for individuals, used to make credit evaluation determinations. These classified companies, known as specialty consumer reporting agencies, compiles and maintains files on consumers on a nationwide basis. These files relate to issues such as medical records and payments, rental or tenant histories, employment, and insurance claims.

A common indicator to determine how you stand in the eyes of creditors is what is known as a credit score. A credit score can have a profound impact on whether or not you will be approved for credit, and the rate of interest you will have to pay when you borrow. A credit score is a three-digit number generated by a mathematical algorithm using information in your credit report. The purpose of this score is to predict risk of your credit obligations. Credit report information goes into five major categories; payment history, amounts owed, length of credit history, new credit, and types of credit used. Federal law mandates the consumer’s right to a free credit report annually from each credit reporting agency, but not to a free credit score. The following link will take you where you can get a free credit score.