Credit Reports

What credit reports are, what information they do and do not contain.

Credit Bureaus maintain a credit report for each individual with a social security number.

You have the right to get and review your credit report at all credit bureaus under the Fair Credit Reporting Act, which was enacted in 1971. Usually a fee applies. However, if you are denied credit depending on the information provided by a certain credit bureau, you have the right to request a free copy of your credit report with the mentioned credit bureau at no charge. Under the Fair Credit Reporting Act, you also have the right to request a free credit report from any credit bureau if any of the conditions apply:

You are unemployed and plan to seek employment within 60 days;
You are on welfare;
Your report is inaccurate due to ID theft or other fraud.

Also see the Sample Letter for correspondence with credit bureaus when denied credit, unemployed, or victim of fraud.

Since all three major credit bureaus have online presence, it is also possible for you to view your credit report online. See: Equifax, Experian, Trans Union.

What Information a Typical Credit Report Have?

A typical credit report has the following information:

Your name.
Your current address.
Your recent previous address(es) (if any).
Your telephone number(s).
Your social security number.
Your Driver's Licence number.
Your date of birth.
Your spouse's name.
Home ownership information.
Your income.
Your current employer.
Your previous employer(s).
A list of accounts you have with credit card companies, retail stores, lenders, and other businesses.
The accounts on which you are listed as an authorized user.
Account numbers to each of the above accounts.
Information on each of the above accounts, such as, the date the account was opened, the kind of account, the limit on the account, the balance on the account, the highest balance on the account in the past, the number of late payments (if any).
Closed or inactive accounts.
Accounts that were transfered to a collection company (if any).
The inquiries made by others to the view your credit report.
Public records, such as bankruptcies, tax liens, foreclosures, court judgments, or overdue child support.
Any unpaid bills, including medical bills.

What Information Credit Reports Do NOT Have

Savings or checking accounts.
Bankruptcies that are more than 10 years old.
Accounts that were transfered to a collection company more than seven years ago.
Driving records.
Medical history.
Criminal records.

The credit bureaus are not allowed to report your gender, ethnicity, religion or political affiliation for privacy reasons.

How to Dispute Wrong Information on Your Credit Report

According to a U.S. PIRG survey conducted in June 2004, 25% of the credit reports contained errors serious enough to result in a denial of credit. 79% of credit reports contained mistakes of some kind.

These facts show that it is very common (or even likely!) for your credit report to contain inaccurate information. Since you are the only person to cerify the accuracy of your credit report, it is, again, you to do something about it.

The first thing you need to do is to order copies of your credit reports from the three major credit bureaus. When you receive your credit report, you have up to 30 days to dispute any wrong or inaccurate information. You also have the right to have the credit bureau in question to report to other credit bureaus in order for them to remove the same wrong information.

If you received a dispute form along with your credit report, you can use it to describe the error on your report. If you do not want to use it, you can write a letter instead. It is highly important that you provide the credit bureau with documentation that supports your claim that the particular information in the report is wrong.

Remember to get yourself a copy of everything you will send to the credit bureau before you seal the envelope. One other important thing to remember is to send your documents via certified mail with a return receipt.

The credit bureau is required by law to investigate your dispute within 30 days after receiving your letter.

Unless the credit bureau finds evidence that the information you are disputing is accurate, it has to remove it from your report.

If the credit bureau makes any changes to your report after your dispute, it has to send you an updated report.

Who Can Look View the Information in my Credit Report?

Lenders
Credit card companies
Landlords
Employers
Banks
Insurance comapnies
Companies you buy from
Government Agencies
People and companies who have a 'permissible reason'
Other people and companies whom have some form of a financial relation with.