How Often Should I Check My Free Credit Report?

You can request only one free credit report from each bureau every 12 months. So should you order a report from each of the three nationwide consumer reporting agencies? If you order from only one company today you can still order from the other two companies at a later date.

You can chose to get reports from the three main credit bureaus, TransUnion, Experian and Equifax, all at once. Or you may chose to spread it out over a year's time to develop the habit of regularly checking the accuracy of your credit history.

The advantage of ordering all three at the same time is that you can compare them. On the other hand, the advantage of ordering one now and others later is that you can keep track of any changes or new information that may appear on your credit report.

Recommended credit-check strategy

Each credit bureau is required by law to give me one free report a year. Because nationwide consumer reporting companies get their information from different sources, the information in your report from one company may not reflect all, or the same, information in your reports from the other two companies. it's important to obtain reports from all three agencies because the information differs from one bureau to the next.

1. Get free credit reports from all three agencies at once

• if you have never seen your credit report
• if you have not seen your credit report in a long time
• if you will be applying for a major loan, such as a mortgage or car loan

2. Spread your requests out over a year

Staggering your requests during a 12-month period may be a good way to keep an eye on the accuracy and completeness of the information in your reports. For example, you may request Experian in the beginning of January, TransUnion in April, Equifax in August. So this will allow you to monitor your credit status three times a year to make sure nobody opens up an account in your name. Most people would be adequately protected with this strategy.

3. Order credit reports regardless of whether you can get a free report

You may wish to view your report more frequently:

• if you seek a major loan within six months
• if your personal information has been compromised
• If your wallet has been stolen or lost
• if you have been a victim of fraud
• if you are closely monitoring your credit history
• if you are worried about identity theft
  

Proactive and regular credit check becomes more important

Identity theft experts agree that on-going credit report monitoring can help spot a problem early on. The sooner you detect something is amiss, the faster you can stop an identity thief from doing serious damage to your good name and credit history.

Until recently, it was enough to check your credit report annually. Now, with the ever increasing occurrence of identity theft and personal data loss incidents, many experts recommend that consumers review credit reports more than once a year. Last year, an estimated 7 million people nationwide became victims of some form of identity theft, according to an independent study. Although there is no single solution to protecting your credit card numbers, social security number and passwords, regular credit report monitoring is one of the best ways to spot a problem early on.

Identity theft and credit monitoring

In this fast-paced digital age, getting only free credit reports one may not be enough for some people. Those who are at high risk of identity theft or who are in the process of improving credit rating may want to keep monitoring their credit.

The best reason for checking your credit reports periodically is the potential for identity theft. Identity thieves tend to work quickly to defraud you after co-opting your personal information. So by the time you order a credit report yourself, the damage may already have been done.

Some experts argue that checking your credit report only quarterly, semiannually or annually could still leave you vulnerable, especially if you get hit a day or two after you checked.

Alternatively, if you want to stay on top of your credit history but don't have the time or desire to submit periodic requests on your own, you may want to consider paying a monitoring service, preferably one covering all three major credit bureaus. Credit monitoring cannot prevent identity theft, but it can give you some early warning that there’s a suspicious change in your credit report.