As of December 1, 2004, residents of 12 western states could check their credit bureau reports at no charge. Residents of all other states will soon have the same right.

     Checking your credit report regularly is a very good idea. A recent study by the U.S. Public Interest Research Group found that 79% of credit bureau reports contained errors. Those errors could cost you a loan, mortgage, or even a job. Further, monitoring your reports enables you to detect identity theft, which millions of Americans are now victims of each year.

     The three major credit bureaus – Equifax, Experian and TransUnion – now have a toll-free line you can call (1-877-322-8228) to request your credit report(s). You don't have to ask for all three reports at once, but can spread out your requests over a year, so you can monitor your credit every four months.

     Alternatively, you can send in a written request to Annual Credit Report Request Service, PO Box 105281, Atlanta, GA 30348-5281. You can also get your credit reports on-line at www.AnnualCreditReport.com. If you go on-line, you will be asked personal questions to verify your identity, such as your social security number, the amount of your mortgage, or your driver's license number. You will not be asked for credit card or bank account numbers.

     As we mentioned, if you live in a western state you can get your free reports now. Free reports will be available in Midwest on March 1, the South June 1, and the East and U.S. Territories September 1.

     Another way to monitor your credit is by signing up for Experian's Triple Alert credit-monitoring system. For $4.95 a month, they will notify you of every inquiry or file change in all three credit bureau files. This will serve as an excellent "early-alert" system for credit card fraud and ID theft.

     You can also now order – for a small fee – your previously secret credit score and other proprietary credit tools, including your FICO scores used by most mortgage lenders to determine your qualifications for a mortgage loan. FICO scores costs $6.95 each, and it's an excellent idea to get them before applying for a mortgage. That will enable you to, for instance, improve your score before applying by paying off old debts or reducing credit card balances.

To view back issues of Jarret Wollstein's Towards Liberty, Click here.