Credit Reports

Why You Should Check

An individual's credit report, financial information, and financial history are all an important for us in life. This information is especially important when someone applies for a loan, insurance (auto, home, personal), rents an apartment, or applies for a job.

What's In A Credit Report

Credit reporting agencies collect information on individuals from various sources. Credit reporting agencies gather information from lenders, such as, banks and credit card issuers. They also obtained information from other public records. A typical credit report contains the following information:

1. Personal Data: Identifying information such as name, social security number, birth date, address, etc.

2. Credit History: Including a list of current and past creditors, credit terms and limits, and how well (or how poorly) an individual has repaid past debts.

3. Inquiries: A list of requests for credit reports,

4. Public Records: Information such as bankruptcies or lawsuits.

5. Personal Statement: A limited statement where an individual can explain his position in a dispute with a lender.

Obtaining A Copy Of Your Credit Report

Anyone can obtain a copy of his/her credit report by submitting a written request to one of the three national credit reporting agencies. Each of the three national credit bureaus require a small fee per each copy requested. A credit report request should be signed, and contain the following information:

1. Name: Including maiden name or other names used.

2. Birth Date: place of birth is also helpful.

3. Social Security Number.

4. Current address: As well as former addresses for the past five years.

5. Spouse's Name: If married.

Contacting A Credit Bureau

Credit bureaus exist at both, local or national levels, which means an individual may have to request separate credit reports from more than one credit bureau. Local credit bureaus can usually be found by checking the local telephone directory under the heading of 'Credit Reporting Agencies.' There are three national credit-reporting agencies

Equifax Credit Information Services, Inc.
P.O. Box 740241
Atlanta, GA 30374
Self-Service Line 1(800)685-1111

Experian (formerly known as TRW)
National Consumer Assistance Center
PO Box 2002 Allen, TX 75013
Consumer Credit Questions
1(888)397 3742

TransUnion
P.O. Box 2000
Chester, PA  19022
1(800)888-4213

Correcting Errors

If a review of your credit report reveals inaccurate information you should contact the credit bureau in writing, explaining as fully as possible why you believe the information to be incorrect (i.e. name, address, social security etc).

As part of the investigation the credit bureau will contact the provider of the disputed information. The law also requires the information provider to investigate the disputed claim and report the findings to the credit bureau. When the investigation is complete, the credit bureau must provide the individual with a written report of the results.

If the data in dispute is found to be incorrect, resulting in a change in the credit report, the credit bureau will provide a free copy of the corrected report to the individual. The information provider is also required to correct its own records and to provide the corrected information to all national credit bureaus.

The investigation of a disputed item may not result in a change in the credit report. If this is the case the individual may ask the credit bureau to include in the file a statement concerning the disputed information.

Your rights under the Fair Credit Reporting Act:

• You have the right to receive a copy of your credit report. The copy of your credit report must contain all of the information in your file at the time of your request.

• You have the right to know the name of anyone who has requested your credit report within the last year.

• Any company that denies your application must supply the name and address of the Credit Reporting Agency (CRA) they contacted, provided the denial was based on information given by the CRA.

• You have the right to a free copy of your credit report when your application is denied because of information supplied by the Credit Reporting Agency. Your request must be made within 60 days of receiving your denial notice.

• If you contest the completeness or accuracy of information in your credit report, you should file a dispute with the CRA and with the company that furnished the information to the CRA. Both the CRA and the provider of information are legally obligated to reinvestigate your dispute.

• You have a right to add a summary explanation to your credit report if your dispute is not resolved to your satisfaction.

Requesting corrections

It is very important that each item in question is dealt with individually. If you attempt to have the Credit Reporting Agency correct several items (or even all items) at once, it will be easier for the agency to claim that your request is frivolous or irrelevant. You should challenge each item individually. Under the Fair Credit Reporting Act, enforced by the Federal Trade Commission, the credit bureau is required to investigate the disputed items, within thirty days after receiving a written request. The specific law on disputes is found in United States Code, Title 15, Chapter 41, Subchapter III, Section 1681i, entitled Procedure in case of disputed accuracy.

Next, you should write a letter to each credit reporting agency, requesting an investigation to verify the status of the most damaging item reported by that agency and asking that they correct the information.

Also, keep in mind that, absent a clear statement of accuracy or completeness of specific information is "disputed" or "challenged", your letter might not be construed as an exercise of rights under the Fair Credit Reporting Act. Mere explanations for the reason a debt was not paid may not constitute a dispute; and therefore does not require the credit reporting agency to reinvestigate or accept your written dispute statements. Explanations are not useful. Disputes get the best results.

Once the credit reporting agency has received your dispute letter, they are obligated to investigate. This obligation is not contingent upon you having been denied credit.

Warnings About Hiring Credit Repair Agencies

You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services. They all make the same claims:

"Credit problems? No problem!"

"We can erase your bad credit -- 100% guaranteed."

"Create a new credit identity -- legally."

"We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!"

Do yourself, and your wallet, a favor. Don't believe these statements. Only time, a conscious effort, and a personal debt repayment plan will improve your credit report.

If you decide to respond to a credit repair offer, beware of companies that:

• Want you to pay for credit repair services before any services are provided;

• Do not tell you your legal rights and what you can do -- yourself -- for free;

• Recommend that you not contact a credit bureau directly; or

• Advise you to dispute all information in your credit report or take any action that seems illegal, such as creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.

What to do if you've had problems with credit repair agencies:

Many states have laws strictly regulating credit repair companies. States may be helpful if you've lost money to credit repair scams.

If you've had a problem with a credit repair company, don't be embarrassed to report the company. Contact the Idaho Attorney General's Office, Consumer Protection Division.

You also may wish to contact the FTC. Although the Commission cannot resolve individual credit problems for consumers, it can act against a company if it sees a pattern of possible law violations. If you believe a company has engaged in credit fraud, send your complaints to: Correspondence Branch, Federal Trade Commission, Washington, DC 20580, 1-888-400-2233.

The National Consumers League's National Fraud Information Center also accepts consumer complaints. You can reach NFIC at 1-800-876-7060, 9 a.m. - 5:30 p.m. EST, Monday - Friday.  The NFIC is a private, nonprofit organization that operates a consumer assistance phone line to provide services and help in filing complaints. NFIC also forwards appropriate complaints to the FTC for entry on its telemarketing fraud database.