Get credit report free online

Get free credit report before application

A great first step to acquiring a mortgage is making sure your credit situation is in order. On Tuesday, residents in Midwestern states (including Illinois, Indiana and Wisconsin), became eligible for a free annual credit report from each of the three major credit bureaus -- Equifax, Experian and Trans Union.

For a small fee, consumers also can acquire their credit scores - - the number used by mortgage lenders based on information in the report, including payment history.

"Most people probably don't even think of their credit score until they find a property they want -- and are desperate to get a loan," said F. Michael Johnson, author of Borrow Your Way to Wealth: How To Start With Nearly Nothing And End Up Rich In Real Estate (Acacia Publishing, $11.95).

"It pays to take care of financing issues first. And one of those issues, a critical one, is your credit score," he said.

These credit scores range from 300 to 850. The higher your score, the better terms you can get on your mortgage.

At www.myfico.com and at www.bankrate.com as well as at the Web sites for many lenders, examples are provided for lending terms for various credit scores.

For example, www.myfico.com notes that if your credit score is about 550, you might be offered a rate of 9.29 percent.

But if your credit score is a nifty 720, you might get a 5.67 percent rate. The difference would be several hundreds dollars each month on a 30-year, fixed-rate mortgage.

"There is only one authorized source for free annual credit reports. Consumers using the Internet should be certain to go only to: www.annualcreditreport.com," said Lydia Parnes, acting director of the Federal Trade Commission's Bureau of Consumer Protection. "Consumers can use this new legal right to monitor their credit and make sure their personal information is accurate."

Consumers may choose to order free reports from all three nationwide consumer reporting companies at the same time, or they may stagger their requests over the course of the year.

The FTC has issued a new brochure, "Your Access to Free Credit Reports," which explains why it is important for consumers to monitor their credit history, how to request a report and how to dispute any errors.

The brochure also reminds consumers that www.annualcredit report.com will not send them e-mails or use pop-up advertising to persuade them to provide personal information. The FTC cautions consumers that e-mails and pop-up ads claiming to be from www.annualcreditreport.com are unauthorized and could be scams.

The Federal Trade Commission's brochure is available at: www.ftc.gov/bcp/conline/pubs/ credit/freereports.htm.

Consumers, to be sure their transaction is secure and their personal information is not at risk, should close their Internet browser after obtaining their report.

If you have friends and relatives in Southern states or Eastern states, they'll be able to order free credit reports later this year.

Free credit reports. The reports can be ordered online at www.annualcreditreport.com, or by calling toll-free (877) 322-8228. Consumers also can get their credit reports by mail. Write to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.