Even in the best financial times, knowing your credit score and what’s in your credit report is sound practice. Unfortunately, the three credit reporting bureaus make it just about impossible to attain your credit information, especially if you’re a young, mobile individual: the type of person who most needs to know their credit history.

The Bureaus and “Free” Reports

There are three major credit reporting bureaus: Experian, Equifax, and TransUnion (occasionally Innovis will be mentioned as a fourth.) Each is a for-profit company: though the main goal is to provide credit information to the “real” customers (banks, rental companies, service providers, and others wishing to extend lines of credit to their customers),  the idea is to move as many paid-for consumer credit reports as possible. Though each is legally obligated to provide an annual credit report, all three never advertise this service. Instead, the credit bureaus push the pay-services, such as freecreditreport.com, and then attempt to upsell you with “maximum protection” packages.

To explicitly state it: freecreditreport.com does provide a free credit report, at no charge to the customer’s credit card. After seven days, however, the company begins a $14.95 per month “monitoring” service. Quoted from the FAQ:

Triple Advantage monitors all three of your national credit reports from Experian, Equifax, and TransUnion. You will be notified of several important changes to any of your credit reports with email and, if you choose, SMS Mobile Text messaging alerts. You’ll know about new derogatory information, recent inquiries into your credit, and several indicators of possible Identity Theft. Remember, Triple Advantage members also receive unlimited copies of their Experian Credit Report and PLUS Score after the trial period.

Keep in mind that a credit score, credit history, and credit report can all mean different things. The most useful and valuable information is your credit history, since it influences the information that makes up your FICO score. Your history can be disputed and corrected with your work. The credit score is simply a mechanized weighted average of the different pieces of your credit history. Combined, these are called your “credit report”, but Experian, and eventually the other agencies, will provide a number based on a proprietary algorithm. Try and get your FICO score if possible: this is, by far, the standard used in determining credit worthiness.

Do you need programs like Triple Advantage? I don’t know, I suppose that’s a question of if the system works as Experian and the others want you to believe it does. I haven’t heard enough information one way or the other, but fortunately, if that $14.95 a month seems to pricey, there’s a different, cheaper and arguably better way to keep your credit safe.

Credit Information On Ice

The best way to protect against your credit being used for someone else is a freeze. A freeze works by preventing anyone, including you, from getting your credit history or score. Different states have different guidelines and rules, but most involve a fee per freeze creation, temporary lift (while you seek credit from a lender) and removal. In Massachusetts, the fee is $5 for each of these, or free if you’ve been a victim of identity theft. You’ll need to set up a freeze with each bureau: they don’t carry over.

The most taxing part of the freeze process is the lead time you’ll need to take into account when you apply for new credit. Plan on at least three to five days to lift the freeze, and notify the agencies which creditor(s) will be looking at your account. Having a freeze does not adversely affect your score, and as far as I can tell, it won’t hurt if you accidentally provide the wrong name for a creditor.

Proving you’re you

Anyone who has attempted to retrieve their personal credit history online has undoubtedly run across this sort of question (paraphrased here):

“Our records indicate that in November 1998, you may have opened a home mortgage account. Which bank did you open this with. If none of the options are applicable to you, or you do not pay mortgage payments, please select NONE OF THE ABOVE.

A) SMTH BRNY SAV & LOAN B) CRESTMARK BANK C) FIRESTAR BANK D) CITI BANK E) NONE OF THE ABOVE”

The credit bureaus claim that this information should only be known to you. The reality is that this question is scary, counter-intuitive, and poorly designed, and probably doesn’t go as far to “protect” you as the credit agencies want you to think.

For starters, there have been a plethora of mergers in the banking sector in the last five to ten years. Smith Barney? Now a part of Citigroup. Which do you pick? And that’s assuming you’re not being “tricked”. I obviously don’t (though I wish I did) have a mortgage payment, but what if someone stole my identity? I can’t answer accurately if I don’t have all of my information meticulously organized, and even then, the very thing I’m trying to prevent could cause me to be locked out of their system.

Keep your financial information together, and know your accounts and history as far back as you can go. The system, terrible as it is, is the one we’ve got right now, so when you face a question like the one above, having your stuff together will really make a difference.

Speaking from experience

Suck it up, invest some time (but not money) into getting copies of your credit report. You can put the burden on the credit bureau and write to them (information on http://www.annualcreditreport.com) providing some personal information such as current and past addresses, as well as your social security number. Unless you’ve been a recent victim of identity theft, don’t waste money on credit-monitoring, and even then, look into alternatives, like credit freezes. Shred your personal financial documents when no longer needed, and never give or leave out personal identifying information like your social security number. Ideally, you shouldn’t carry your SSN in your purse or wallet. Memorize the number, don’t write it down or store it in your cell phone, and keep your original card under lock and key.