If you are considering purchasing a home, you might want to begin by taking a look at your credit. While you don’t need perfect credit, it’s a smart idea to find out what’s on your credit report before applying for a loan. The Fair and Accurate Credit Transactions (FACT) Act of 2003 made it possible for consumers to access free copies of their credit report.

You can request one free credit report every 12 months from each of the three major consumer credit reporting agencies: Equifax, Experian and TransUnion. You might consider requesting a copy from each, as you may come across inaccuracies.  Some also suggest requesting a copy from one, waiting 4 months, and then requesting a copy from the next one, and so forth.  That way, you’ll have a free report every 4 months and can make sure each one has the same info. If you find errors, you can try to resolve them before contacting a mortgage lender. If you come across legitimate blemishes, you may want to take steps to improve your credit rating before applying for a home loan. Even if you aren’t looking to buy a home soon, you might consider taking advantage of this free look at your credit report.

There are many sites out there that will allow you to receive your free credit report, but AnnualCreditReport.com is the official site.  If you use this site, it is truly free and does not require you to enter a credit card number.  Many (if not all) of the other sites want you to enter a credit card number so they can automatically enroll you in some type of monthly program that will charge you if you don’t cancel.

Source: Texas Association of Realtors®