Guarding your credit record.(money)

David Jokinen, a real-estate developer in Sugar Land, Tex., tells a story that's all too familiar. When he decided to refinance his mortgage in 2001, his application was denied. Three credit bureaus confused him with his recently deceased mother, with whom he had co-signed for three credit cards. As Jokinen wryly testified at a congressional hearing in 2003, "It's a little harder to get credit when the depositories report you as "deceased.'" Amazingly, it took more than two years of dogged effort to get the credit bureaus and the bank to correct their errors.

Such credit-report nightmares should become less common thanks to new federal legislation that gives consumers better tools to ensure accuracy and fight identity theft. The law, known as the Fair and Accurate Credit Transactions Act (FACTA), was enacted in December 2003. Some of its new protections are already in force, while others will be rolled out gradually starting in December. Among the law's important new benefits:

Free annual credit reports. As in the past, if you're a victim of ID theft or if you've been turned down for credit because of negative information, you're entitled to a free report. Now, however, all consumers can obtain free copies once a year from each of the three major credit bureaus (Equifax, Experian, and Trans Union). Simply make a request at the centralized Web site or on the toll-free telephone line. The Federal Trade Commission will announce both the number and Web address by early December.

Free credit-report access begins on Dec. 1 in Western states; on March 1, 2005, in the Midwest; on June 1, 2005, in the South; and on Sept. 1, 2005, in the Northeast. You can ask to receive copies from all three bureaus at the same time. But if you want to keep tabs on the accuracy of your financial information throughout the year, request your report from one bureau initially, then follow up with another bureau's report four months later and the third four months after that.

Access to credit scores. "Very few numbers are as important to your financial future as your credit score, because this three-digit number has everything to do with what your interest rate will be and even how your car insurance is priced," says Travis Plunkett, legislative director of the Consumer Federation of America. Your score is calculated by credit bureaus and by individual lenders based on information in your credit report. Besides providing your score, the bureau must explain the factors that adversely affected it.

The new law also requires mortgage lenders to provide scores at no charge to ...