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Build
A Better Credit Record - Improve Your Credit Report :
Consumer
Reporting Agencies - credit report
If
you've ever applied for a credit card, a personal loan, or
insurance, there's a credit report file about you. This file
contains information on where you work and live, how you pay
your bills, and whether you've been sued, arrested, or filed
for bankruptcy.
Companies
that gather and sell this information are called Consumer
Reporting Agencies (CRAs). The most common type of CRA is
the credit bureau. The information CRAs sell about you to
creditors, employers, insurers, and other businesses is called
a consumer report.
The
Fair Credit Reporting Act (FCRA)
The FCRA is designed to promote accuracy and ensure the privacy
of information used in consumer reports. Recent amendments
to the Act expand your rights and place additional requirements
on CRAs. Businesses that supply information about you to CRAs
and those that use consumer credit reports also have new responsibilities
under the law.
Here
are some questions consumers commonly ask about consumer reports
and CRAs-and the answers.
Q.
How do I find the CRA that has my credit report?
A. Contact the CRAs listed in the Yellow Pages under "credit"
or "credit rating and reporting." Because more
than one CRA may have a file on you, call each until you
have located all the agencies maintaining your file. The
three major credit bureaus are:
In
addition, anyone who takes action against you in response
to a report supplied by a CRA-such as denying your application
for credit, insurance, or employment-must give you the name,
address, and telephone number of the CRA that provided the
report.
Q.
Do I have a right to know what's in my report?
A. Yes, if you ask for it. The CRA must tell you everything
in your report, including medical information, and in most
cases, the sources of the information. The CRA also must
give you a list of everyone who has requested your report
within the past year-two years for employment related requests.
Q.
Is there a charge for my report?
A. Sometimes. There's no charge if a company takes adverse
action against you, such as denying your application for
credit, insurance or employment, and you request your report
within 60 days of receiving the notice of the action. The
notice will give you the name, address, and phone number
of the CRA. In addition, you're entitled to one free report
a year if you certify in writing that (1) you're unemployed
and plan to look for a job within 60 days, (2) you're on
welfare, or (3) your report is inaccurate because of fraud.
Otherwise, a CRA may charge you up to $9.00 for a copy of
your report.
Even
if you have not been denied credit, you may want to find
out what information is in your credit report. Some financial
advisors suggest that you review your credit report periodically
for inaccuracies or omissions. This could be especially
important if you're considering a major purchase, such as
buying a home or a car. Checking in advance on the accuracy
of the information in your credit report could speed the
credit-granting process.
Q.
What type of information do credit bureaus collect and sell?
A. Credit bureaus collect and sell four basic types of information.
Identification
and employment information
Your name, birth date, Social Security number, employer,
and spouse's name are routinely noted. The CRA also may provide
information about your employment history, home ownership,
income, and previous address, if a creditor requests this
type of information.
Payment
history affects your credit report
Your accounts with different creditors are listed, showing
how much credit has been extended and whether you've paid
on time. Related events, such as referral of an overdue account
to a collection agency, may also be noted.
Inquiries
CRAs must maintain a record of all creditors who have asked
for your credit history within the past year, and a record
of those persons or businesses requesting your credit history
for employment purposes for the past two years.
Public
record information
Events that are a matter of public record, such as bankruptcies,
foreclosures, or tax liens, may appear in your report.
Improve
Your Credit Report :
Under
the law, both the CRA and the organization that provided the
information to the CRA,
such
as a bank or credit card company, have responsibilities for
correcting inaccurate or incomplete information in your report.
To protect all your rights under the law, contact both the
CRA and the information provider if you have a dispute.
First, tell the CRA in writing what information you believe
is inaccurate. Include copies (not originals) of documents
that support your position. In addition to providing your
complete name and address, your letter should clearly identify
each item in your report you dispute, state the facts and
explain why you dispute the information, and request deletion
or correction. You may want to enclose a copy of your report
with the items in question circled. Your letter may look something
like the one below. Send your letter by certified mail, return
receipt requested, so you can document what the CRA received.
Keep copies of your dispute letter and enclosures.
source: http://www.ftc.gov/bcp/conline/pubs/credit/bbcr.htm
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