Web sites required to disclose free credit report site

Starting Friday, a new Federal Trade Commission rule will require Web sites advertising free reports to direct consumers to the government-approved annualcreditreport.com. TV and radio ads must do the same starting Sept. 1.

The ads typically don't disclose that the advertised free reports are part of a package of services that can cost as much as $14.95 a month. Consumers may not realize they can get free reports with no strings attached.

The new rules are a mostly overlooked piece of last year's massive credit card reform bill, the Sacramento Bee reported. The FTC said that in too many cases the advertising was misleading and duped consumers into monthly fees for credit monitoring and other services that many didn't want or didn't know they were signing up for.

"People all the time ask, 'Why am I being charged when all I wanted was a free credit report?' " said John Ulzheimer, consumer education president for Credit.com, a personal finance Web site.

Now that it will be easier to find your free credit report, it's important to know who else can see it and how it can be used.

Five credit report tips

There is more than one freebie a year

You're entitled to a free copy of your credit report every year from each of the credit reporting agencies - Equifax, Experian and TransUnion.

On top of that, you can request free reports if you're the victim of identity fraud or unemployed and looking for work. You're also entitled to free copies if you think your report has errors or if it's ever used against you, such as if a bank or prospective employer turns you down.

Know who can pull your report

Only banks, debt collectors, landlords or those with a valid interest can pull credit reports. "Curiosity is not a permissible purpose," said the FTC's Rebecca Kuehn. "You can't just pull a report, not even on your husband."

Prospective employers also need to get written consent to run checks on job applicants.

It comes in multiples

FICO develops the most widely used scores, but they're not the only ones on the market. VantageScore has gained in popularity and all three credit bureaus now sell both to lenders. The version you'll get depends on the credit bureau you go to. Additionally, FICO scores range from 300 to 850. VantageScores, which are sold by Experian, range from 501 to 990.

Some data will cost you

Credit scores aren't free, however. You can buy them from a credit bureau or from MyFico.com for $15.95.

Other reports may be out there

Beside credit reports, banks and lenders are increasingly running additional checks on loan applicants, such as income verification, said Teresa Grove, a spokeswoman for Kroll Factual Data, a screening company. Other consumer reports provide records on check fraud, driving violations and rental histories.