GREENVILLE, S.C. -- For years, experts have told consumers that they need to check their credit report every year.

But for the past few years, unless you were denied credit, you had to pay up to $35 to see your credit report from the three credit reporting agencies. Only those who were denied credit could get a free report.

Now, officials say starting late this year, consumers will be able to get a free credit report from each agency each year. The initiative is part of an effort to cut down on identity fraud by making it easier to spot.

"The sooner you catch it, the less damage there is. It's like a leak. If you plug it early, there's little water on the floor," bank investigator Dennis Weathers said.

Beginning Dec. 1, free credit reports will become available on the West coast. Over a nine-month period, the availability will roll out eastward, with the last of the eastern states becoming eligible on Sept. 1, 2005.

Here's the roll-out calendar:

• Dec. 1, 2004: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.
• March 1, 2005: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.
• June 1, 2005: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas.
• Sept. 1, 2005: Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, Puerto Rico and all U.S. territories.

Once you have the report, you need to look for the things that you don't recognize.

"If you're looking at your file and you see an account, for example, for a Rich's card, if you've never shopped at Rich's, never had a Rich's card, then obviously that would concern you," Equifax's Chris Jarrard said.

Credit counselors estimate that 80 percent of all credit reports contain at least one mistake.

The free credit reports come as a result of the Fair and Accurate Credit Transactions Act.

Under the Act, the three major credit reporting agencies, Equifax, TransUnion, and Experian, are required to provide consumers, upon request, a free copy of their credit report once every 12 months and to create a centralized source to process the requests.

This centralized source will include a Web site, a toll-free telephone number and a postal address.

The FTC is working with the credit reporting agencies to figure out how consumers will register their requests for a free report.

They plan to have a sign-up system ready by later this fall.

Once it is ready, the FTC will launch a public awareness campaign.