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.

This entry was posted on Tuesday, October 23rd, 2007 at 2:09 pm and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.