A credit report contains information on where you live, how you pay your
bills, and whether you’ve been sued, arrested, or filed for bankruptcy.
Consumer reporting companies sell the information in your report to
creditors, insurers, employers, and other businesses that use it to
evaluate your applications for credit, insurance, employment, or renting
a home.
In recent months, consumers have asked for more details about
their credit reports in general. Here are the most frequently
asked questions and the answers.
Q: Why would I want to get a copy of my credit report?
A: You
may want to review your credit report:
because the information it contains affects whether you can get a
loan — and how much you will have to pay to borrow money.
to make sure the information is accurate, complete, and up-to-date
before you apply for a loan for a major purchase like a house or car,
buy insurance, or apply for a job.
to help guard against identity theft. That’s when someone uses
your personal information — like your name, your Social Security
number, or your credit card number — to commit fraud. Identity thieves
may use your information to open a new credit card account in your
name. Then, when they don’t pay the bills, the delinquent account is
reported on your credit report. Inaccurate information like that could
affect your ability to get credit, insurance, or even a job.
Q: What if I find errors — either
inaccuracies or incomplete information — in my credit report?
A: The
consumer reporting company and the information provider (that is, the
person, company, or organization that provides information about you to
a consumer reporting company) are responsible for correcting inaccurate
or incomplete information in your report. To take advantage of all your
rights under this law, contact the consumer reporting company and the
information provider.
Tell the consumer reporting company, in writing, what information
you think is inaccurate.
Consumer reporting companies must investigate the items in question —
usually within 30 days — unless they consider your dispute frivolous.
They also must forward all the relevant data you provide about the
inaccuracy to the organization that provided the information. After
the information provider receives notice of a dispute from the
consumer reporting company, it must investigate, review the relevant
information, and report the results back to the consumer reporting
company. If the information provider finds the disputed information is
inaccurate, it must notify all three nationwide consumer reporting
companies so they can correct the information in your file.
When the investigation is complete, the consumer reporting company
must give you the written results and a free copy of your report if
the dispute results in a change. If an item is changed or deleted, the
consumer reporting company cannot put the disputed information back in
your file unless the information provider verifies that it is accurate
and complete. The consumer reporting company also must send you
written notice that includes the name, address, and phone number of
the information provider.
Tell the creditor or other information provider in writing that
you dispute an item. Many providers specify an address for disputes.
If the provider reports the item to a consumer reporting company, it
must include a notice of your dispute. And if you are correct — that
is, if the information is found to be inaccurate — the information
provider may not report it again.
Q: What can I do if the consumer reporting
company or information provider won’t correct the information I dispute?
A: If an
investigation doesn’t resolve your dispute with the consumer reporting
company, you can ask that a statement of the dispute be included in your
file and in future reports. You also can ask the consumer reporting
company to provide your statement to anyone who received a copy of your
report in the recent past. You can expect to pay a fee for this service.
If you tell the information provider that you dispute an item, a notice
of your dispute must be included any time the information provider
reports the item to a consumer reporting company.
Q: How long can a consumer reporting
company report negative information?
A: A
consumer reporting company can report most accurate negative information
for seven years and bankruptcy information for 10 years. There is no
time limit on reporting information about criminal convictions;
information reported in response to your application for a job that pays
more than $75,000 a year; and information reported because you’ve
applied for more than $150,000 worth of credit or life insurance.
Information about a lawsuit or an unpaid judgment against you can be
reported for seven years or until the statute of limitations runs out,
whichever is longer.
Q: Who else can get a copy of my credit
report?
A: Creditors, insurers, employers, and other businesses that use the
information in your report to evaluate your applications for credit,
insurance, employment, or renting a home are among those that have a
legal right to access your report.
Q: Can my employer get my credit
report?
A: Your employer can get a copy of your credit report only if you agree.
A consumer reporting company may not provide information about you to
your employer, or to a prospective employer, without your written
consent.