As far as the bank cares, credit reports tell no lies

Credit Bureaus

What is a Credit Report?

A Credit Report is a document containing your credit history, credit activity and personal information. This report is created by the three major credit bureaus, which are private companies, and are independent of each other. The primarily purpose of a credit report is to provide creditors with information about you, to determine whether or not they will extend you a line of credit. In some cases a credit report can be reviewed prior to establishing an insurance policy or offer a position for employment. Most consumers check their credit report in an attempt to prevent identity theft and to use as leverage when purchasing a car or a home.

What is a Credit Bureau?

The three major credit bureaus, are also known as Credit Reporting Agency (CRA), which include Equifax , TransUnion and Experian (formerly TRW). Each company is a business independent of each other and is federally regulated. CRAs collect detailed financial information, store it in databases and then sell it. Creditors and businesses that depend on the information are the main customer of the CRAs. By law these credit bureaus must provide a toll free telephone number so that you may contact them at no cost. Also they are obligated to provide live customer service rather than an automated system. The credit bureaus gather information from creditors that have previously issued credit to you and those that you may be applying to for credit. Information may also be collected from public records (i.e. bankruptcy), tax and property records. It is suggested that consumers review their credit report for errors. According to federal law (Fair Credit Reporting Act-FCRA) the credit bureaus are not help responsible if the information collected is incorrect. This is why it is important to review your own credit report and look for errors and correct them.

What will I find in a credit report?

A typical credit report includes personal information, credit/financial history, public records and credit inquiries.
1.    Personal Information: Your complete name, current and previous address (work and home), date of birth, social security number, phone numbers, present and prior employer, and information about your spouse and/or ex-spouse.
2.    Credit/Financial History: List of your creditors (accounts you have open or closed), date the account was opened, credit limits or loan amounts and payment history over the past 2-5 years (including current balances and negative information).
3.    Public Records: Information obtained via state and county courts such as, bankruptcy, tax liens, child support and monetary judgments.
4.    Recent Credit Inquiries: The names and addresses of those who have acquired a copy of your credit report. Inquiries remain on your credit report up to two years.

You are permitted to add a 100-word assertion to your report ,so you may clarify a particular entry. It is important that you be clear and brief because the credit bureaus are only allowed to insert a summary of your statement. Your credit report is updated whenever someone requests a copy of it. When a creditor or insurance company contacts the credit bureau and requests information, they put together the latest information they have available and present it to the requester as you credit report.

Who is allowed to view my credit report?

The credit bureaus are allowed to issue your report to creditors, employers, insurers, and government agencies.
•    Creditors: Credit and loan companies who have issued or are considering issuing you credit/loan.
•    Employers: A company considering you for employment, promotion or reassignment.
•    Insurance Company: Used when considering you for a new insurance policy or reviewing/revising an open policy.
•    Government Agencies: Is used to determine if you are eligible for government benefits and/or programs. Also, used to review your financial status.

When should I obtain a copy if my credit report? It is good practice to review your credit report on yearly basis. By law anyone with a Social Security Number (SSN) is allowed one free report every 12 months from each of the major credit bureaus. This helps reduce to the chances of inaccurate information and avoid fraud.

Can I attain a copy of my report before the 12 month anniversary? As previously mentioned every person with a SSN is allowed one free report. Since you are allowed one free report from each bureau, a good practice would be to spread out your requests throughout the year. In this case you review your report for free three times a year. But what if you suspect that you are a victim of fraud or identity theft? This does not apply to the free annual report program and are allowed a free report from each of the major bureaus. If you are denied credit/loan, you are entitled to a copy of your report to review what the problem might be.

How can I get a copy of my credit report? You can contact each of the major credit bureaus, Equifax , TransUnion and Experian , or through www.annualcreditreport.com .