Get a Free Credit Report by Law

As you may know, U.S. employers are generally allowed by law to check your credit report for making employment decisions about you. Such a check is typically part of a larger employment background check or security-clearance investigation. Credit report errors or omissions can damage your background check or security investigation, which might make you lose job opportunities, promotions or transfers.

The good news is, an amendment to the U.S. Fair Credit Reporting Act (FCRA) entitles you to receive a free credit report once per year, with no strings attached. To avoid potential problems with your background checks or security investigations, it's a good idea to request your free credit report every 12 months and check it for accuracy. It's not unusual for credit reports to be incorrect or incomplete.

In fact, complaints against credit bureaus for inaccurate credit reports are among the most common that the Federal Trade Commission (FTC) receives. The FTC is the government agency that enforces FCRA regulations and those of other acts that protect American consumers. Keeping the credit bureaus "honest" on your behalf is the whole idea behind the FTC's free credit report program under the FCRA.

How to Obtain Your Free Credit Report

The FTC completed rolling out the free credit report program in 2005. The program requires the three major credit reporting bureaus to issue a free credit report to each American who requests it through AnnualCreditReport.com. It's the "official" free credit report site in the U.S. under the FTC's program.

Online at AnnualCreditReport.com is the quickest way to get your free credit report. The site is presumably secure, as indicated by https:// in its Web address. (Browse Use of Site for information about security, privacy and such.) But, if you're still wary about submitting personally-identifiable information online, you may instead request a free credit report by mail or telephone.

How to Repair Your Credit Report

If you obtain a fee-based or free credit report and discover that it's inaccurate or incomplete, under the FCRA, you have the right to dispute and repair it. If you're a do-it-yourselfer, follow the FTC's free guidelines or consider purchasing one of the products that'll help you with the credit report repair process.

If you'd prefer not to tackle it yourself, an attorney will do it for you. Regardless of how you go about credit report repair, it's a good idea to get the ball rolling as soon as possible after you discover a problem. It often takes time and effort.

If you suffer employment-related damage thanks to your credit report, such as loss of a job opportunity, promotion or transfer, you might have grounds for a lawsuit. Read "Background Check - Credit Report" for more information about laws and regulations that govern both fee-based and free credit reports.