FAQ: Credit Report

1. Is it possible to check my present credit report rating?

It is not only possible, but also very important. You can get a copy of your credit report from one of the leading credit reporting bureaus (Equifax, Experian, and Trans Union). This can be done for free by visiting Free Annual Credit Report website.

2. Who protects my rights of a consumer regarding my credit file?

Your consumer rights in regards to your credit file are protected by several federal laws and state law. There is The Fair Credit Reporting Act that is meant to make sure that credit bureaus provide businesses with complete and accurate information. Thus, consumers are protected by this act that requires credit bureaus to apply fair and appropriate procedures concerning confidentiality, correctness, and decent use of their credit information.

Some of the points of the act presuppose the following: you are eligible to know who asked for your credit report during the last year or two; you have the right to obtain a copy of your credit report any time, and once in a year you are entitled to receive a free copy; you have the right to dispute mistakes or inaccurate information contained in your credit report; credit reporting agencies cannot report negative information that is over 7 years old (10 years old in case of bankruptcy); access to your credit report is limited.

3. What should I do if I have noticed the signs of credit fraud?

If you suspect that you've become a victim of credit fraud, there are a number of steps to take:

• Get in touch with the fraud departments of the major credit agencies: Equifax 1-800-685-1111, Experian 1-800-301-7195 and Trans Union 1-281-874-0169
• Apply to the police to report identity theft crime
• Take care to place a “fraud alert” on your credit report. Get in touch with your credit card issuers to notify them of the possible theft and cancel your existing cards
• Inform your bank about the theft and apply for new account numbers.

Other organizations that can assist you if you are sure that you've suffered from credit fraud are National Fraud Information Center, Consumer Credit Counseling Services, and CSC Credit Services.

4. Is there a form of credit dispute letter?

Writing a credit dispute letter is one of the first steps in the process of correcting one's credit report mistakes. A letter is sent to the credit reporting agency that has included incorrect information into your credit file. There are sample forms of a credit dispute letter that will help you expound your case, so be sure to check online.

5. Is the information from three credit reporting bureaus agreed?

No, it is not. Every credit reporting bureau works independently. They may exchange information in some special cases, but it is a rare case. Besides, some creditors choose to report to only one bureau.

6. What can be done if there is information missing in one's credit report and how can this be disputed?

Though the majority of accounts will be reflected in your credit report, there may be instances of missing information, since not all creditors apply to credit reporting bureaus. Thus, if you have received a denial in credit because of a “no credit file”, while in fact you do have accounts with creditors, you can get in touch with credit reporting bureaus and ask them to add the missing information to your file. Though they are not obliged to do that, most often they will meet halfway with you and add the information, usually for some fee. Be prepared to provide some evidence of your account, such as a letter from the creditor or the paid receipt.

However, keep in mind that this information will most likely stay without updates, since those creditors still won't report to the bureaus regularly.

7. Is there a centralized place for disputing credit report errors and are there time limits for doing that?

Unfortunately no, since each credit reporting agency operates independently. So, you will have to dispute the case with each bureau separately. Still, if you have already clarified the situation with the creditor and can provide a letter from them, the task will be simplified a bit, since the bureaus will only need to get your information confirmed. As for time limits, there are actually none, but as in any other area, the sooner mistakes are identified, the easier it is to correct them.

8. What is the most popular credit reporting agency?

There are three major credit reporting bureaus that operate in the USA – Experian, Equifax, and Trans Union. It's difficult to say exactly which of them is the most popular one, but in general it is considered that Equifax and Experian tend to report faster and are simply more consumer-friendly. Of those two, Experian often gets more positive comments for efficiency of correcting mistakes and speedy reporting. On the other hand, many people tend to admit that they have better credit score with Trans Union.

9. Can anyone else can get a copy of my credit report?

No. According to the Fair Credit Reporting Act, a copy of your credit report can be obtained only by people who have a legitimate business need for that, for instance, landlords, creditors, employers, insurers, etc. Besides, they are still unable to obtain a report that features your medical information unless you give your approval.

10. What happens to credit report information after seven years?

The majority of derogatory records, for instance, payment delays or collection accounts, will be removed from your credit report after 7 years from the date of their inclusion. The exception is bankruptcy that will be recorded in your credit report for 10 years. Such records as loans, child support issues, etc will be shown for 7 years from the date they are paid or disposed. As for positive credit records, these can be shown for any period of time, without restrictions.

11. What kind of information is reflected on one's credit report?

Your credit report contains your personal information, such as name, address, date of birth, phone number, and employment, your credit and loan histories, information on injuries, collection and public records including bankruptcies and tax liens.

Most of the information contained in your credit report is obtained from those businesses you have accounts or loans with, such as lenders, banks, credit card companies, etc.

12. What is a credit score?

The term “credit score” stands for a numeric evaluation of one's credit history. It is meant to help businesses you are going to deal with determine whether you present any risk to them as a potential borrower. There are a set of complex formulas used to calculate credit scores. A person has three credit scores that are calculated by credit reporting bureaus (Equifax, Experian, and TransUnion).

Credit scores are presented as a number ranging from 300 to 850, and a good credit score is that starting from 680. One's credit score can vary depending on various changes in their credit report. A person with good credit score can take advantage of such benefits as the best rates on significant purchases.

13. How different credit card information is removed from my credit report?

Derogatory information included into your credit report will not be removed from the file for 7 years. As for positive information, it can stay in your credit report for unlimited period of time.

14. How long does bankruptcy stay on one's credit report?

According to Fair Credit Reporting Act, bankruptcy should stay in one's credit report for 10 years. But as a rule, Chapter 7 bankruptcy will stay in one's credit report for 10 years, and Chapter 13 bankruptcy is likely to be removed from the file after 7 years from the moment of discharge.

15. What should be listed on one's credit report?

Some personal information, including address, date of birth, and employment, credit cards information, loan history, and public records.

16. How 30-days late payment on the mortgage can influence my credit report?

A history of being late on payments may result in higher interest rates on following loans. In case you are planning to opt for mortgage refinancing, the late payment will have impact on the interest rate. You can expect it to follow you for 1 or 2 years.