Effective June 1, 2005, Texas residents are eligible for 1 FREE credit report per year.

Soon the circumstances will be right for every American to get a free credit report every year -- no strings attached. This comes as a welcome relief to the millions of Americans who have had to pay to review their credit reports in the past. The free credit reports come as a result of the FTC's final ruling under the Fair and Accurate Credit Transactions Act.

According to the ruling, the three major credit reporting agencies, Equifax, TransUnion and Experian, are each required to provide consumers, upon request, a free copy of their credit report once every 12 months from a centralized source. This centralized source includes a Web site, a toll-free telephone number and a postal address.

The program is rolling out region-by-region. Thirteen western states became eligible to request their free annual credit reports Dec. 1. Over a nine-month period, the availability will roll out eastward, with the last of the eastern states becoming eligible on Sept. 1, 2005.

The reports will not automatically be sent out. Each consumer must request their reports one of these three ways. Go to www.annualcreditreport.com, which is the only authorized source for consumers to access their annual credit report online for free. Or, call 877-322-8228. Lastly, you may complete the form on the back of the Annual Credit Report Request brochure, and mail it t Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA, 30348-5281. One more caveat: you'll be able to order all three credit reports at one time, or at different times throughout the year. It's your choice. But, be sure to order from the centralized agency. If you go directly to the credit reporting agencies, you will be charged unless you fit another criteria for a free report.

The new ruling doesn't replace the other ways to receive a free credit report. If a company denies you credit, insurance or a job because of something in your credit report, that company has to tell you which credit bureau provided the information. You are entitled to a free credit report from that bureau within 60 days of being turned down.

You can request your free credit report by phone or mail, and just must mention that you were denied credit, insurance or a job. The credit bureau will check to see if it indeed provided information to the creditor, insurance company or employer that turned you down. Because bureaus are not notified when you are denied, they have to take your word for it.

You also are entitled to a free credit report if you are on welfare, are unemployed and plan to look for a job soon, or your credit report is inaccurate due to fraud -- in other words, because someone stole your identity.