SACRAMENTO, Calif. -- A federal law that went into effect today allows consumers to obtain one free copy of their credit report annually from each of three reporting agencies, according to state Attorney General Bill Lockyer.

The Fair and Accurate Credit Transactions Act requires the three national agencies that compile credit reports, Equifax, Experian and Trans Unions, to provide consumers the annual free copy of their report.

Lockyer wants to emphasize to consumers that the law will help them correct credit report errors that can affect their ability to obtain housing, get a job, or get a car,and will help fight identity theft.

Today begins the first phase of the multi-part law, which begins in the West allowing states from Wyoming to Alaska and Hawaii to obtain their reports. On March 1 Midwestern states can begin requesting their reports and on Sept. 1 Eastern states will get a chance to request reports.

Consumers Union, the non-profit publisher of Consumer Reports, has published a special guide to help consumers order, review, and correct mistakes in their free reports.

Norma Garcia, senior attorney at the organization's West Coast office in San Francisco urges consumers to order the report to ensure its accuracy and protect against identity theft.

"Having good credit can mean the difference between paying a high or a low interest rate for a loan, or whether consumers are offered insurance, jobs, or housing," said Garcia in a prepared statement.

Consumers can request a free copy of their credit report online at http://www.annualcreditreport.com, by calling (877) 322-8228, or by mail.

The Consumers Union guide is available online at http://www.consumersunion.org.