Be wary of free credit report offers

It’s imperative to regularly review your credit report to ensure accuracy, prevent fraudulent activity and keep track of your financial progress. Your credit report is a snapshot of how well you’ve managed debt and contains a variety of other information, including how much debt you’ve accumulated, how you pay bills, where you live and whether you’ve filed bankruptcy.

You’ve probably seen or heard advertisements offering free credit reports, but the Better Business Bureau advises you to be careful when responding. Some are misleading, as they promote free credit reports, but require you to purchase credit monitoring or other products or services.

Beginning April 2, the Federal Trade Commission’s Free Credit Reports Rule will require new prominent disclosures in ads for free credit reports. The disclosure states, “This notice is required by law. Read more at FTC.gov. You have the right to a free credit report from AnnualCreditReport.com or (877) 322-8228, the ONLY authorized source under federal law.” The statement must be at the top of each page mentioning free credit reports. Television and radio advertisements must comply by Sept. 1.

The Fair Credit Reporting Act allows you to receive a free copy of your credit report from each of the three credit reporting agencies every 12 months.

Once you’ve received your credit report, carefully review it for inaccuracies or incomplete information. If you find mistakes, you’ll need to inform the credit reporting agency in writing.

If you notice fraudulent activity or think you’re a victim of identity theft, you can place a fraud alert on your credit report. A fraud alert prevents new accounts from being opened or new cards on existing accounts from being obtained without your permission.

Contact the BBB for more information or to check companies out. Visit www.bbb.org or call (937) 222-5825 or (800) 776-5301.

John North is president and CEO of the Better Business Bureau.

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