Your credit report contains information about where you work and live and how you pay your bills. It also may show whether you've been sued or arrested or have filed for bankruptcy. Companies called Consumer Reporting Agencies (CRAs) or credit bureaus compile and sell your credit report to businesses.
Since businesses use this information to evaluate your applications for credit, insurance, employment, and other purposes allowed by the
, it's important that the information in your report is complete
and accurate.Some financial advisors suggest that you periodically review your credit report for inaccuracies or omissions. This could be especially important if you're considering making a major purchase, such as buying a home. Checking in advance on the accuracy of information in your credit file could speed the credit-granting process.
If you've been denied credit, insurance, or employment because of information supplied by a Credit Reporting Agency, the Fair Credit Reporting says the company you applied to must give you the Credit Reporting Agency's name, address, and telephone number.
If you contact the agency for a copy of your report within 60 days of receiving a denial notice, the report is free. In addition, you're entitled to one free copy of your report a year if you can prove 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 Credit Reporting Agency may charge you up to $9.00 for a copy
Here's how to get your Free
Credit Report once a year, directly from the 3 credit agencies.
If you want a copy of your report more frequently than once a year, call the Credit Reporting Agencies listed in the Yellow Pages under "credit" or "credit rating and reporting." Call each credit bureau listed since more than one agency may have a file on you, some with different information. The three major national credit bureaus are:
Under the Fair Credit Reporting, both the Credit Reporting Agency and the organization that provided the information to the Credit Reporting Agency, 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 Credit Reporting Agency and the information provider.
First, tell the Credit Reporting Agency 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 sample letter shown below. Send your letter by certified mail, return receipt requested, so you can document what the Credit Reporting Agency received. Keep copies of your dispute letter and enclosures.
Credit Reporting Agencies must reinvestigate the items in question--usually within 30 days--unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the Credit Reporting Agency, it 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, it must notify all nationwide Credit Reporting Agencies so they can correct this information in your file.
Disputed information that cannot be verified must be deleted from your file.
If your report contains erroneous information, the Credit Reporting Agency must correct it.
If an item is incomplete, the Credit Reporting Agency must complete it. For example, if your file showed that you were late making payments, but failed to show that you were no longer delinquent, the Credit Reporting Agency must show that you're current.
If your file shows an account that belongs only to another person, the Credit Reporting Agency must delete it.
When the reinvestigation is complete, the Credit Reporting Agency 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 removed, the Credit Reporting Agency cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the Credit Reporting Agency gives you a written notice that includes the name, address, and phone number of the provider.
Also, if you request, the Credit Reporting Agency must send notices of corrections to anyone who received your report in the past six months. Job applicants can have a corrected copy of their report sent to anyone who received a copy during the past two years for employment purposes. If a reinvestigation does not resolve your dispute, ask the Credit Reporting Agency to include your statement of the dispute in your file and in future reports.
Second, in addition to writing to the Credit Reporting Agency, tell the creditor or other information provider in writing that you dispute an item. Again, include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider then reports the item to any Credit Reporting Agency, it must include a notice of your dispute. In addition, if you are correct--that is if the disputed information is not accurate--the information provider may not use it again.
Accurate Negative Information
When negative information
in your report is accurate, only the passage of time can assure its removal.
Accurate negative information can generally stay on your report for 7 years.
There are certain exceptions:
Information about criminal convictions may be reported without any time limitation.
Bankruptcy information may be reported for 10 years.
Credit information reported in response to an application for a job with a salary of more than $75,000 has no time limit.
Credit information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.
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.
Your credit file may not reflect all your credit accounts. Although most national department store and all-purpose bank credit card accounts will be included in your file, not all creditors supply information to Credit Reporting Agencies: Some travel, entertainment, gasoline card companies, local retailers, and credit unions are among those creditors that don't.
If you've been told you were denied credit
Date
Your Name
Your Address
Your City, State, Zip Code
Complaint Department
Name of Credit Reporting Agency (Equifax, Espirian, TransUnion)
Address
City, State, Zip Code
Dear Sir or Madam:
I am writing to dispute the following information in my file. The items I dispute are also encircled on the attached copy of the report I received. (Identify item(s) you are disputing by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) This item is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why).
I am requesting that the item be deleted (or request another specific change) to correct the information. Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.
Under the provision set forth by the 1977 Federal Fair Credit Reporting Act, you have 30 days to prove accuracy or must remove the account entirely from my report and I ask you to do so. You will note that this letter was sent by certified mail and that I expect a response within the said 30-day period. Should I not hear promptly from you I will follow up with whatever action is necessary to cause my report to be corrected.
Sincerely,
Your name and phone number
Enclosures: (List what you are enclosing)
Remember: Do not send your original of any documentation or evidence of payment to a Credit Reporting Agency. Keep the original for your records.
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