Checking your credit report once a year- and before any major purchase or life
change- is a key part of any financial plan. You have the right to receive a
free credit report from each of the three major credit bureaus- Experian,
TransUnion, and Equifax- once a year through the Annual Credit Report Request
Service at
www.annualcreditreport.com. The free reports do not
include credit scores. You may request your score for a fee at the time of
ordering the free reports if you choose to do so. Contact information is
included at the end of this document.
A credit report is divided into four sections: personal identification, trade
lines, public record, and inquiries.
Personal identification - Your name and any former names or aliases, your
current address and former addresses, your employment history and marital
status
Trade lines - Your history of handling credit:
Creditors and account numbers
Dates accounts were opened
Credit limits or original balances
Whether accounts are individually or jointly held
Balances and payment patterns for the last 24 to 36 months
Accounts in collections
Accounts in dispute
Public records - Information about lawsuits to which you are a party, liens or
legal claims on your property, bankruptcies, and past due child or spousal
support
Inquiries - Who has requested your report for at least the past year and your
history of applications for loans or credit
Your Credit Standing
When evaluating your credit for a loan, lenders
will look at your credit history and many will review your credit score. A
credit score is a numerical guide that is representative of lending risk and is
determined by your past credit usage. Scores generally range from 300 to 850,
with higher numbers indicating a lower risk. As your credit activity changes,
so does your score. Scores reflect payment patterns, with more emphasis placed
on recent activity. By paying bills on time, keeping balances low (in relation
to the account limit), and only applying for and opening new accounts as
needed, you can maintain a strong credit score.
Negative information, if accurate and timely, cannot be removed from your
credit report- most negative information will remain for seven years. You can,
however, improve your report by committing to on-time payments and repaying old
collection accounts.
Your Rights
Credit bureaus are regulated by the Federal Trade
Commission, and must comply with the Fair Credit Reporting Act (FCRA). The FCRA
provides consumers certain rights:
The right to access your reports - You may access free reports through the
Annual Credit Report Request Service, or purchase reports directly from the
credit bureaus. If you have been denied credit, insurance, or employment
because of information on your credit report, you are entitled to a free copy
of that report directly from the credit bureau.
The right to accuracy - It is the credit bureau's responsibility to report
correct information. If you discover inaccuracies, file a dispute with the
bureau. When you receive your credit report, you will receive instructions on
disputing information either on-line or through the mail.
The right to have negative information "age-off" - While positive information
can remain on a credit report indefinitely, most negative information will be
removed after seven years.
The right to privacy - Only those with a need recognized by the FCRA may access
your reports. This is usually a creditor, insurer, landlord or other business.
The right to seek damages - If you believe a credit bureau, a business that
provides information to the bureau, or a user of the information contained in
your report violates the FCRA, you can file a complaint with the Federal Trade
Commission. You may also have additional rights concerning your credit
information under state law.
Fixing Errors
Mistakes do happen. Be sure to have incorrect or outdated
information investigated and removed. Either dispute the error through the
credit bureau's website or send a letter explaining which information is wrong.
Enclose supporting documents. You may also dispute an item by telephone using
the contact information listed on your credit report. The bureau has 30 days to
investigate, during which time a dispute notation will show up on your report.
The credit bureau must give you a written report of the investigation and a
copy of your report if it results in any change. You may ask that anyone who
has recently received your report be notified.
Contact Information
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
877-322-8228
www.annualcreditreport.com
Equifax
P.O. Box 105069, Atlanta, GA 30374
(800)685-1111
www.equifax.com
