A 2004 study by the U.S. PIRG found that one out of every four credit reports contained serious errors that could result in the denial of credit. In this credit driven society it is unacceptable for consumers to stay silent while credit errors affect their daily lives.
Get to know your credit reports
Whether consumers agree, a credit report reflects financial responsibility. Having mistakes in a credit report can result in the denial of basic necessities such as housing and employment.
How Negative Credit Affects Your Finances
Democratic-NY Rep. Carolyn Maloney said “Being denied credit based on erroneous information impairs your future chances of getting credit and makes it harder to overcome the error…mistakes mushroom into very serious problems.”
It has become imperative that you rid your credit files of any errors, inaccurate and out-dated information that is viewed as negative. Learn how to effectively dispute inaccurate information. Unfortunately, in today’s society, there is no getting around credit.
The credit bureaus do not always respond to disputes according to the Rules of Fair Credit Reporting Act FCRA. This is not unusual and you may have to dispute errors several times before they are favorably resolved. It is important to continue the dispute process to the end, no matter how many months it takes.
Three Major Credit Bureaus
Consumer credit reports are contained in one or all of the three major Credit Bureaus, also known as Credit Reporting Agencies. The three major credit bureaus are Experian, Equifax and Transunion. Each of the credit reports often contain varying information.
Types of Information Contained in Credit Report
The types of information included in your credit reports may include the following:
- Payment History
- Account Balance
- Credit Limit
- Inquiries
- Collections
- Employment History
- Address and Telephone Number
- Any information supplied by you when you complete an application for credit
- Public Information (bankruptcy, court judgments, past due child support, liens and foreclosures)
Who Has Access to Your Credit History?
Anyone with a legitimate business purpose can get your credit report such as:
- Landlords
- Employers and potential employers
- Auto, Home & Life Insurance Companies
- Cable & Satellite Companies
- Utility Companies (Telephone, Electric & Gas)
- Cell Phone Providers
- Companies that you have a credit account with can regularly monitor your credit
- Government agencies considering you for licensing
- State and Local Child Support Enforcement Agencies
- Any Government Agency
With so many entities potentially looking at your credit it is imperative that you know exactly what they are viewing. Know where you stand and get your Equifax credit profile or the TrueCredit 3-in-1 Credit Report & Credit Score from Transunion.
The FACT Act
In accordance with the federal FACT Act, consumers are now able to get a free copy of their credit report every 12 months from each of the three major credit bureaus, Experian, Equifax and TransUnion. The toll free number is (877) 322-8228. You can also go online at annualcreditreport. You do not have to order all three credit reports at one time. You can choose to stagger your free reports over the course of a year by ordering one report every four months. You Are Entitled to a Free Report
The FACT Act is not the only way to get a free credit report. You are entitled to a free credit report if you have experienced one of the following:
- Denied credit in the last 60 days
- Unemployed and intend to apply for employment in the next 60 days
- You are on public welfare assistance
- If you believe your file contains inaccurate information due to fraud or identity theft
- Denied employment based upon information contained in your credit report
- If your report has been updated or revised based upon an investigation you requested
Freeze Your Credit Reports
Some states offer consumers the option to “freeze” their credit report so it can only be accessed in very limited situations. Victims of identity theft can request this option for free if a police report is provided to the credit reporting agencies. For other consumers who are not victims of identity theft, you can request a “freeze” for a fee.
Marketing and Pre-Approved Offers
The credit bureaus engage in the practice of selling lists for use in “pre-approved” credit and insurance offers. Consumers who receive pre-approved credit offers are often on these marketing lists. However, pre-approved does not necessarily mean a credit report will not be pulled. If you respond, the creditor may access your credit report before you are actually granted credit. Your application can also be denied at this time.
You have a choice to remove you name from any marketing list compiled by a credit reporting agency. To remove your name from all three credit reporting agencies’ marketing lists you can “opt-out”. Call (888) 5-OPTOUT or (888) 567-8688 to opt out or go online to optoutprescreen.
