How do you get these histories? There’s a single federal site where you apply: www.annualcreditreport.com. There’s also a toll-free number: 877-322-8228. If you approach the three major credit bureaus directly, i.e. Equifax, Experian and TransUnion, there’s a chance you will be asked to pay. If you go to any other website, you will almost certainly be asked to pay to get your “free” reports. Use the federal site only to avoid problems. When you log on to the site, be prepared with your name, address, date of birth and social security number. You will also be asked for some other information only you would be expected to know, e.g. the amount you paid as the last mortgage instalment. Assuming you pass through the security system without problem, you will be give immediate access to your report. If you use the telephone system or write them a letter, expect to wait two more more weeks for a hard copy of the report to arrive.

If you find a mistake on your free credit report that affects your credit scores, you should act immediately. Write to the credit bureau and the reporting agency that filed the incorrect information using certified mail with return receipt requested, and explain in detail why the credit report is wrong. Send copies of the relevant bills, statements, cancelled checks and receipts – hopefully, you are well organized and have been keeping all these original documents and records in a safe place. If you are writing to report a case of identity theft with someone opening an account or falsely using your credit cards, make a police report and send a copy of that report to the bank, credit card company, etc. The bureau and reporting agency have thirty days to reply with the results of their investigation. If they agree with you, the information will be corrected. If they disagree, they must given reasons. In this way, you can ensure that all the information about you is both complete and accurate. With your records accurate, your FICO scores should improve.

So what was going wrong? The most common problem was related to the quality of the information on file. People would submit their personal details and be rejected because their “real” information did not match the “data” on file. Access by the public was set up through a security system that assumed the data on file was always right. Big mistake. The quality of data is only as good as all the people who input it. So although we can applaud a security system that protects us from scammers trying to pass themselves off as us, there has to be a fallback position that allows people to have this faulty data corrected. The second problem was ironic. The security system was set up to ensure that people only got free reports when they were due. So if the scammers got in first, the real people were refused access because “they” had already received their annual report. Very reassuring.

So how do you get your free credit report? Well, avoid all the scam internet sites that appear to be offering your “free” reports but actually charge you through the backdoor. There are hundreds of look-alike sites that try to deceive consumers. Never sign up for any service that asks you for money. The official site runs under the URL www.AnnualCreditReport.com. There’s also a toll free telephone line – (877) 322-8228 – and a real-world address – Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Most of the early problems have now been solved allowing people easier access to their report. So what do you get after you have jumped through all the hoops? You get your credit history. That’s all the transactions recorded against your name by your creditors. You do not get your credit scores. The reason for this is simple. Every lender has a different formula for working out whether you are a “good” credit risk. Getting one bureau’s calculation is no guarantee of how the others will do the math. So work through the credit report and protect your interests.