Keeping your credit in check

The school year is drawing to a close, and so is Financial Literacy Month at the University of Northern Iowa. As summer approaches, some students who are graduating may be anticipating the repayment of their student loans. Others may be preparing to enter a new lease for an apartment. Still others may face underemployment and try to fill in the gaps in their expenses by charging necessary items.

All these things can affect credit, and Tim Bakula says it's important to stay in the know.

    "All of the stuff that you're doing now, financially, will follow you. It's something a lot of students don't think about, but it is important to keep in mind," said Bakula, associate director of customer service and outreach in the UNI Financial Aid office.

    The Fair Credit Reporting Act of 1970 guarantees all consumers access to a free credit report from each of the three consumer reporting agencies – TransUnion, Experian and Equifax – once every 12 months. According to the Federal Trade Commission's website about credit reports, www.annualcreditreport.com is the only authorized source for one's free annual credit report. This website is sponsored by the three aforementioned agencies.

    You don't have to get a report from all three agencies at once, however. Bakula says some people get a report from one agency at a time every four months or so.

    "You (can) get one from each of those three on a revolving basis, so you're not just getting one snapshot in time at (that time of) year," he said.

    Your credit score is not available at the Annual Credit Report website for free. However, you are able to purchase it at a discounted price from each of the three bureaus when you get your free report. Websites like www.freecreditscore.com can be misleading, as there are strings attached. You can get your credit score without your debit or credit card being charged, but you must call a phone number and (after some attempts at persuasion on the part of the company behind the website) cancel your membership before the 10-day trial period ends to avoid a recurring membership fee.

    Bakula said it may be possible to get your credit score for free in certain situations, for example, when applying for a loan.

    "If you're going to buy a car, ask them, hey, do you happen to know what my score was? Most of the time the people sitting across the table will want to work with you and help you out and say, here's what it was," Bakula explained.

    To get your free credit report or learn more about what a credit report entails, go to www.annualcreditreport.com.