The information in your credit report has a large impact on whether or not you qualify for a mortgage loan and what interest rates a lender will offer you. It is important that your credit report reflects a positive image of the way you manage your money. when you are ready to buy a home, checking your credit report is the best way to ensure you get the loan and interest rate you deserve. The best way to see what’s in your credit report is to contact the three national credit reporting agencies – Equifax (www.equifax.com), Experian (www.experian.com) and Trans Union (www.transunion.com) - and request a copy from each organization. These three agencies are independent of each other and the information may differ on all three reports. In addition, you may not be aware which agency your lender will use to check your credit, so it is best to verify that all three agencies have correct information about your credit history. If you have been denied credit, insurance, or employment because of information in your credit report from any of the three agencies, you can obtain a free credit report by contacting the agency within 60 days of receiving a decline notice. In addition, you're entitled to a free copy of your personal report each year when you certify in writing that (1) you are unemployed and looking for a job within 60 days, (2) you are currently on welfare, or (3) your report contains errors due to fraud. Otherwise, the agencies will charge a fee for a copy of your report from their agency. For additional fees, each agency may offer you different report variations, such as:

• A report with or without your credit score.

• A three-in-one report that lets you see a side-by-side comparison of historical records, from all three agencies, with or without scores.

• Notification services when your credit history is requested.

• When routine notification changes to your file happen.

• Subscription services that allow you to access your report on a regular basis.

The new credit law promotes free access to credit reports

Soon you'll be able to get your credit report for free regardless of your employment or financial situation. A recent amendment to the federal Fair Credit Reporting Act (FCRA) mandates that each agency provide you with a free copy of your credit report, at your request, once every year, from www.annualcreditreport.com. 

Free reports will be phased in during a nine-month period, rolling from the West Coast to the East beginning December 1, 2004. By September 1, 2005, free reports will be accessible to all consumers.

Here is a breakdown of eligibility for a free credit report:

Beginning December 1, 2004 - Consumers in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming

Beginning March 1, 2005 - Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin

Beginning June 1, 2005 - Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas

Beginning September 1, 2005 - Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia – the District of Columbia, Puerto Rico, and all U.S. territories.

Whether you are thinking of buying a home or simply curious about what’s in your credit report,  it’s important to correct any errors you discover as soon as possible.  You don’t want errors in your credit report  affecting your eligibility for credit in the future.