Transcripts

"Money File"-The Free Credit Report"

PAUL KANGAS: In the money file tonight, getting credit where credit is due or in this case getting your credit report. Here`s Chuck Jaffe, senior columnist of CBS Marketwatch.

CHUCK JAFFE, SENIOR COLUMNIST, CBS MARKETWATCH: Beginning December 1, consumers in the western United States can get a free copy of their credit report from the three major credit bureaus. The rule making that possible, the Fair and Accurate Credit Transactions Act, rolls out across the country from west to east, with Midwesterners getting free reports beginning next March and southerners gaining free access in June. Residents of eastern states get their turn next September. Reviewing your credit files should be an annual financial chore. It`s quick and easy. It involves just going to the web sites for the major credit bureaus. And it`s essential for ensuring that the elements that go into your credit score are correct and that you haven`t been the victim of identity theft. But being eligible for a free credit report is different from actually getting one. Some states have had rules allowing free credit reports for years, only to have few residents take advantage of the offer. Studies show that people in free-report states like Massachusetts, Colorado and Georgia, do not review their credit files more than people in states where a payment is required to see the file. In general, people check their credit only when they`ll soon need a loan and are nervous about what the lender`s going to be looking at. But with credit reports forming the basis for credit scores and with those scores determining everything from the loan rates to the job opportunities someone can get, reviewing credit histories is a critical personal financial chore. So put "check my credit report" on your to-do list for 2005. The fact that it`ll be free is a bonus. I`m Chuck Jaffe.