Credit Center: Learn

Getting a credit report might sound like a difficult, and possibly expensive, process. The truth is that it's easy to get your report online — and it's actually free.

According to the Federal Trade Commission's website: "The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months." For more information, visit annualcreditreport.com.

Now that you know how easy it is to get a credit report, here are a few very important things you'll be able to do with it:

1. Correct old and inaccurate information
Despite a number of safeguards, inaccurate information can end up on a credit report. A recent study found that one in four reports contains significant errors that can impact your ability to obtain a loan. At the very least, your information could be out of date. Make sure your report is up to date before you apply for a loan.

2. Eliminate surprises
The worst way to find out about an issue on your credit report is when a car dealer or lender asks you a hard question during the loan application process. The earlier you get your report, the longer you have to prepare for the car-shopping experience. Get answers to the tough questions or avoid them altogether by working on the information your credit report provides. It's also easier to make smart decisions — from applying for credit cards to refinancing a mortgage — when you understand your finances.

3. Help prevent identity theft
A crime that is unfortunately on the rise, identity theft occurs when someone uses your information, such as your Social Security number or credit card number, to commit fraud. With your credit report, you'll be able to check that everything reflected is about you, and only you. If you discover inaccurate or fraudulent information in your report, such as a credit card you did not open, contact the credit reporting agencies immediately. You also need to contact the information provider, in this example, the credit card company. For more information, please visit the Federal Trade Commission's website.

Next Steps
As with any aspect of credit, reporting is a personal issue based on your unique information and financial history. We suggest you work with one of the three main US credit reporting agencies to learn more about your credit report. Each agency offers an assortment of products and services that can help you do everything from understand your credit score to protect yourself from the dangers of identity theft.

There are several easy ways to get the information you need online. We encourage you to continue your credit exploration with a visit to Experian, AutoTrader.com's preferred credit monitoring provider.