Information from the
National Consumer Law
Center, Inc.
What is
a credit report?
A
credit report is a record of
how you have borrowed and
repaid debts. Creditors
usually look at this report
to decide whether or not to
grant credit.
What
kind of information can be
Included in my report?
Most
commonly:
 |
Identification and
employment data
|
|
Payment history on your
accounts |
|
A
listing of all creditors
who have recently
requested copies of your
report |
|
Public record
information (such as
bankruptcies,
foreclosures, court
judgments) |
Who
can see my credit report?
Only
certain people are allowed
to look at your report, such
as:
Creditors, when you apply
for credit or for a loan.
Employers, but only under
certain circumstances and
only if you give them
written authorization.
Government agencies,
including those trying to
collect child support.
It
is a good idea to keep track
of your credit history by
ordering your report.
There are three major credit
reporting agencies and many
other small ones. You
should order your report
from at least the "Big
Three." These companies
are:
Equifax
Experian (formally TRW)
Trans Union
These
agencies may charge you up
to $9.00 for the report.
The report is free if you
have been denied credit
within the past 60 days.
You can also get one free
report in any 12-month
period if you are unemployed
and will be applying for a
job within the next 60 days,
if you are on welfare, or if
you have reason to believe
that your report contains
inaccurate information due
to fraud.
How do
I order my report?
To
order from the "Big Three"
companies, you should send a
written request which
includes your full name,
date of birth, social
security number and
residences for the past five
years. Each company has a
toll free number that you
can call for more
information:
Should
I use a credit repair
company for help?
Beware
of credit repair companies.
There are many things you
can do on your own for free
to "fix" you credit or to
rebuild your credit.
Beware
of these common claims made
by credit repair companies:
"We
can erase bad credit."
The
truth is that no one can
erase bad credit
information from your
report if it is
accurate.
"Only we can remove old or
inaccurate information."
The
truth is that if there
are legitimate errors on
your report or old
information, you can
correct the report for
free.
"Legitimate errors"
means that the
information is
inaccurate, not just
that it is information
you don't like.
"Old information"
means credit information
older than 7 years, or
bankruptcy information
older than 10 years.
"The bad information on your
report is accurate but we'll
erase it anyway."
The
truth is that if this
means lying to the
credit reporting agency,
it is illegal.
What
should I look for in my
report?
You
should look for the
following possible problems:
Are
there any errors?
Is
there any old information?
Look
for:
|
Credit information older
than seven years
|
|
Bankruptcy information
older than ten years.
|
This
is considered "old"
information and should no
longer be in your report.
Will this solve all of my
credit problem?
No.
Sometimes people get into
trouble with credit. The
problems will usually show
up on your report. The best
thing to do in this
situation is to start
rebuilding your credit. And
if you apply for new credit,
shop carefully. Try to get
the best terms possible.
What if I fix everything and
I'm still turned down for
credit?
It
is possible that you are
being illegally
discriminated against. It
is against the law for
creditors to base decisions
to extend or deny credit on
sex, age, race, color,
religion, national origin,
marital status, receipt of
public income or assistance
or the exercising of your
rights under consumer
protection laws.
You
should consult an attorney
immediately if you think
this has happened to you.
National Consumer Law Center
is a resource for lawyers and
advocates on consumer issues
affecting low- and
moderate-income Americans. |
