Your credit report is an important tool and contains significant personal information about where you work, live and how you pay your bills. It may also show whether you’ve been sued, arrested, filed bankruptcy, or other public records. Often, consumer reporting bureaus compile and sell these reports to businesses. Because businesses use the information to evaluate your applications for credit, employment, insurance and other important information allowed under the Fair Credit Reporting Act, it is important that the information be complete and accurate. Therefore, it is important that you periodically review the information contained in the report. Reviewing a credit report is especially important if you are making a major life change such as purchasing a home or other major item. In checking in advance on the accuracy of such information can help speed up and make the process more efficient.
If you have been denied credit because of information supplied by one of the credit reporting agencies, the Fair Credit Reporting Act says that the company who has denied you must supply you with the name, address and telephone number of the credit reporting agency. If you contact the agency for a copy of your credit report within 60 days of receiving a denial notice, the report is free. In addition, you are entitled to one free copy of your credit report each year which can be obtained at www.annualcreditreport.com.
If you simply want to obtain a copy of your credit report, you may do so by contacting all or one of the three major credit bureaus. These bureaus are as follows:
Experian – 888-397-3742
Equifax – 800-685-1111
TransUnion – 800-916-8800
There may be a fee for the report which is usually approximately $9.00 per copy.
If there are errors on the report, under Fair Credit Reporting Act, both the credit bureau and the organization that provides the information such as a credit card company or other credit provider have responsibilities for correcting inaccurate or incomplete information in your report. If the information is incorrect, you should immediately contact both the credit reporting bureau as well as the person who provided the information. In that instance, you should contact the credit bureau in writing outlining the information you believe is inaccurate. You should include copies of documents that support your position. In addition to providing your complete name and address, the letter should clearly identify the items that are being disputed with a clear explanation as to why the information is inaccurate and the changes that you are requesting. It is wise to include a copy of the report with sample notations regarding the suggested changes. Your letter should be sent by certified mail, return receipt requested so you can document receipt. It is important that you retain a copy of the dispute letter as well as proof of receipt and any enclosures. Under the Fair Credit Reporting Act, the credit reporting agency must investigate any questions within 30 days unless they consider your dispute frivolous. Also, they must forward the relevant data you provided about the dispute to the provider of the information. After the information is provided, they must investigate, review all relevant information provided by the credit reporting agency and report the results to the credit reporting agency. If the information provider finds the disputed information to be inaccurate, they must notify all credit bureaus (not only the one investigating the matter) so that they can correct the information in your file. Disputed information that cannot be verified must be deleted from your file.
If in fact your credit report was erroneous, the information must be corrected. If an item is incomplete, it must be completed. When the investigation is complete, the credit reporting agency must give you written results and a free copy of your report, if the dispute results in changes to the report. If an item is changed or removed, the credit reporting agency cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness and then the credit report agency will give you written notice that includes the name, address and phone number of the provider. In addition, you may have the credit reporting agency send notices of corrections to anyone who received your report in the last six months or potential employers who have received a report in the last two years. If the investigation does not resolve your dispute, you may ask the credit reporting agency to include your statement of dispute in your file with future requests for credit reports.
When negative information is in your credit report which is accurate, only the passage of time can assure its removal. Accurate negative information will generally stay on your report at least seven years. There are certain exceptions – information about certain items such as criminal activity and bankruptcy may be reported for 10 years. Criminal convictions can be reported without any time limit.
Please understand that your credit file may not reflect all of your accounts. If for any reason you have been denied credit because you have “no credit file” or “insufficient information,” you may request a credit reporting agency to investigate the possibility of adding unreported accounts to your report.
