Consumer Reports WebWatch recently released a report on 24 Web sites that offer consumers paid access to their credit reports and scores. The report reveals the potential for confusion since many consumers believe these sites are connected to the government’s free annual credit report site, www.annualcreditreport.com.

The Fair and Accurate Credit Transaction Act of 2003 entitles consumers to one free copy of their credit report per year from one of the three major credit reporting bureaus - Equifax, Experian, and Transunion. Many sites have since popped up as “alternatives” to annualcreditreport.com, and they market themselves aggressively to consumers.

The WebWatch report found that consumers who knowingly use the alternative sites in conjunction with annualcreditreport.com may find their services valuable. However, consumers using the alternative sites because of confusion about annualcreditreport.com may end up paying needlessly for something they are entitled by law to receive for free, or paying more than necessary for credit scores.

The report summarizes, “Based on an analysis of 58 offers made on 24 alternative sites, we conclude that the enticement of free credit reports and free credit scores is an integral part of the marketing of credit-related services. The most common offer (57% of the 58 offers analyzed) provides one or more free credit reports and one or more free credit scores with the purchase of a credit monitoring service. The second most common offer (15% of the remaining) involves access to a free credit scores with the purchase of three credit reports. Some of these uses of the term “free” may be inconsistent with the regulatory guidelines of the Federal Trade Commission and the self-regulatory standards of the Better Business Bureau.”

For more information, read the complete report. Remember, the best site to visit to receive a free credit report is the U.S. government site, annualcreditreport.com.

Financial Freedom’s Credit Enhancing Program offers monthly coaching sessions if you find that you need to get your credit back on track. You can receive an in-depth credit report analysis, and will be coached through the steps you need to take to improve your credit. Also, the Credit Correction Kit is a do-it-yourself guide to reading and correcting information on your credit report.

Problems in the subprime mortgage market have dominated real estate news this year, making many Americans hesitant to buy, sell, or alter their mortgage in any way. Let’s take a look at what led to the subprime mortgage crisis, and how you can avoid the roadblocks.

In 2001 the Federal Reserve slashed interested rates 11 times, dropping the key lending rate dramatically. As a result, demand increased across the country and home prices rose very quickly in hot spots like California and Florida. Then, from 2004 to 2006, 17 interest rate hikes started to take their toll. The higher rates particularly affected Americans who had purchased homes with an adjustable rate mortgage.

In 2007, foreclosures have soared, up 93 percent from one year ago. The subprime mortgage crisis is affecting the financial industry on an international scale, and the Federal Reserve recently cut the interest rate at which they lend to banks to try to keep credit flowing.

The Mortgage Bankers Association expects home sales to decline this year as lenders make it more difficult to get mortgages approved. Mortgage originators have tightened underwriting standards in response to mounting defaults and foreclosures on loans to borrowers with blemished credit histories.

The best way to avoid a subprime mortgage is to improve your credit rating and ensure you are in a good financial position to pay any loan you acquire. Improve your credit rating by paying your bills on time, paying down your debts, and participating in credit counseling. Credit Enhancement Coaching from Financial Freedom can help you accomplish these goals by analyzing and then helping you directly improve your credit report.

If you are currently renting but seeking homeownership, Financial Freedom’s Lease to Own Program is for you. If you have poor credit or lack money for a downpayment, this program will help you avoid a subprime mortgage. An investor will purchase a home that you can lease for 12 months while Financial Freedom helps you prepare for homeownership.

Last month, U.S. Comptroller of the Currency John C. Dugan unveiled two new Public Service Announcements aimed at encouraging delinquent mortgage borrowers to get help by contacting their lenders or a trusted housing counselor in order to avoid foreclosure.

“As these ads so powerfully underscore, doing nothing is the worst thing a delinquent borrower can do,” Dugan said at a symposium on preventing foreclosures. “The sooner borrowers reach out for help, the more options they have, and the more likely foreclosure may be avoided.”

Dugan noted that in half of all foreclosures, lenders say borrowers did not make contact with them. Yet, more than one-third of those who reach out for assistance are successful in finding alternatives to foreclosure.

“All of this means that many of the 1.26 million borrowers who entered foreclosure last year might have been helped if they had acted earlier to contact their lender, or consult a trusted housing counselor,” said Dugan.

Dugan encourages homeowners experiencing financial difficulties to call 1-888-995-HOPE, a toll-free hotline staffed by 85 qualified housing counselors from agencies approved by the U.S. Department of Housing and Urban Affairs.

“We have learned that it is not enough to achieve homeownership,” said Dugan. “We - all of us operating in our respective roles - have to work hard to sustain homeownership.”

Financial Freedom can help you avoid foreclosure and get your finances on track through PayAccel, the 9Steps2Wealth program, and the PayAccel HELOC (Mortgage Eliminator).

Just four years ago, only four states gave consumers the right to freeze their credit files. Today, 35 states allow credit freezes, and 8 allow them for victims of identify theft.

A “security freeze” means your credit file cannot be shared with potential creditors and no one can open any form of credit in your name. But that doesn’t mean you won’t be able to get credit for yourself. You can lift the freeze when necessary using a personal identification number.

So if your credit files are frozen, even someone who has your name, birthday and Social Security number should not be able to get credit in your name. In exchange for this added security, it will take slightly longer to get your own new credit approvals.

One step down from a credit freeze is a “fraud alert.” Residents of any state can ask the three major credit reporting agencies to place a fraud alert on their credit reports, which is supposed to alert you and ask your permission when someone applies for credit in your name. Creditors, however, aren’t required to abide by or even check the alert.

Using credit freezes or fraud alerts are a matter of personal choice, but keep them in mind as an option if you would like to protect your private information and guard against credit theft.

Click here to find out your state’s policy on credit freezes and how to get a freeze initiated.

Financial Freedom can help you gain control of your credit through the Credit File Correction Kit.