The Fair Credit Reporting Act (FCRA) requires each of
the nationwide consumer reporting companies – Equifax,
Experian, and TransUnion – to provide you with a free
copy of your credit report, at your request, once every
12 months. The FCRA promotes the accuracy and privacy of
information in the files of the nation’s consumer
reporting companies. The Federal Trade Commission (FTC),
the nation’s consumer protection agency, enforces the
FCRA with respect to consumer reporting companies.
A credit report includes information on where you
live, how you pay your bills, and whether you’ve been
sued, arrested, or filed for bankruptcy. Nationwide
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.
Here are the details about your rights under the FCRA
and the Fair and Accurate Credit Transactions (FACT)
Act, which established the
free annual credit report
program.
Q: How do I order my free
report?
A: The three
nationwide consumer reporting companies have set up a
central website, a toll-free telephone number, and a
mailing address through which you can order your free
annual report.
To order, visit
annualcreditreport.com,
call 1-877-322-8228, or complete the
Annual Credit Report Request Form
and mail it to: Annual Credit Report Request Service,
P.O. Box 105281, Atlanta, GA 30348-5281. The form is on
the back of this brochure; or you can print it from
ftc.gov/credit. Do not
contact the three nationwide consumer reporting
companies individually. They are providing free annual
credit reports only through
annualcreditreport.com,
1-877-322-8228, and Annual Credit Report Request
Service, P.O. Box 105281, Atlanta, GA 30348-5281.
You may order your reports from each of the three
nationwide consumer reporting companies at the same
time, or you can order your report from each of the
companies one at a time. The law allows you to order one
free copy of your report from each of the nationwide
consumer reporting companies every 12 months.
A Warning About “Imposter”
Websites
Only one website is authorized to fill orders for the
free annual credit report you are entitled to under law
–
annualcreditreport.com.
Other websites that claim to offer “free credit
reports,” “free credit scores,” or “free credit
monitoring” are not part of the legally mandated free
annual credit report program. In some cases, the “free”
product comes with strings attached. For example, some
sites sign you up for a supposedly “free” service that
converts to one you have to pay for after a trial
period. If you don’t cancel during the trial period, you
may be unwittingly agreeing to let the company start
charging fees to your credit card.
Some “imposter” sites use terms like “free report” in
their names; others have URLs that purposely misspell
annualcreditreport.com
in the hope that you will mistype the name of the
official site. Some of these “imposter” sites direct you
to other sites that try to sell you something or collect
your personal information.
annualcreditreport.com and the nationwide consumer
reporting companies will not send you an email asking
for your personal information. If you get an email, see
a pop-up ad, or get a phone call from someone claiming
to be from
annualcreditreport.com or any of the three
nationwide consumer reporting companies, do not reply or
click on any link in the message. It’s probably a scam.
Forward any such email to the FTC at
spam@uce.gov.
Q: What information do I
need to provide to get my free report?
A: You need to
provide your name, address, Social Security number, and
date of birth. If you have moved in the last two years,
you may have to provide your previous address. To
maintain the security of your file, each nationwide
consumer reporting company may ask you for some
information that only you would know, like the amount of
your monthly mortgage payment. Each company may ask you
for different information because the information each
has in your file may come from different sources.
Q: Why do I want a copy of
my credit report?
A: Your credit
report has information that affects whether you can get
a loan – and how much you will have to pay to borrow
money. You want a copy of your credit report 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.
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: How long does it take to
get my report after I order it?
A: If you request
your report online at annualcreditreport.com, you should
be able to access it immediately. If you order your
report by calling toll-free 1-877-322-8228, your report
will be processed and mailed to you within 15 days. If
you order your report by mail using the Annual Credit
Report Request Form, your request will be processed and
mailed to you within 15 days of receipt.
Whether you order your report online, by phone, or by
mail, it may take longer to receive your report if the
nationwide consumer reporting company needs more
information to verify your identity.
There also may be times when the nationwide consumer
reporting companies receive a high volume of requests
for credit reports. If that happens, you may be asked to
re-submit your request. Or, you may be told that your
report will be mailed to you sometime after 15 days from
your request. If either of these events occurs, the
nationwide consumer reporting companies will let you
know.
Q: Are there any other
situations where I might be eligible for a free report?
A: Under federal
law, you’re entitled to a free report if a company takes
adverse action against you such as denying your
application for credit, insurance, or employment and you
ask for your report within 60 days of receiving notice
of the action. The notice will give you the name,
address, and phone number of the consumer reporting
company. You’re also entitled to one free report a year
if you’re unemployed and plan to look for a job within
60 days; if you’re on welfare; or if your report is
inaccurate because of fraud, including identity theft.
Otherwise, a consumer reporting company may charge you
up to $9.50 for another copy of your report within a
12-month period.
Under state law, consumers in Colorado, Georgia, Maine,
Maryland, Massachusetts, New Jersey, and Vermont already
have free access to their credit reports.
Q: Should I order a report
from each of the three nationwide consumer reporting
companies?
A: It’s up to you.
Because nationwide consumer reporting companies get
their information from different sources, the
information in your report from one company may not
reflect all, or the same, information in your reports
from the other two companies. That’s not to say that the
information in any of your reports is necessarily
inaccurate; it just may be different.
Q: Should I order my
reports from all three of the nationwide consumer
reporting companies at the same time?
A: You may order
one, two, or all three reports at the same time, or you
may stagger your requests. It’s your choice. Some
financial advisors say staggering your requests during a
12-month period may be a good way to keep an eye on the
accuracy and completeness of the information in your
reports.
Q: What if I find errors –
either inaccuracies or incomplete information – in my
credit report?
A: Under the FCRA,
both 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 full advantage of your rights under this law,
contact the consumer reporting company and the
information provider.
1. 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. (This free report does not
count as your annual free report under the FACT
Act.) 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.
2. 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: Can anyone else can get
a copy of my credit report?
A: The FCRA
specifies who can access your credit report. 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.
The FTC works for the consumer to
prevent fraudulent, deceptive and unfair business practices
in the marketplace and to provide information to help
consumers spot, stop, and avoid them. To file a complaint or
to get
free information on consumer issues,
visit
www.ftc.gov or call
toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY:
1-866-653-4261. The FTC enters Internet, telemarketing,
identity theft, and other fraud-related complaints into
Consumer Sentinel, a
secure, online database available to hundreds of civil and
criminal law enforcement agencies in the U.S. and abroad.
Other methods on HOW TO CORRECT ERRORS IN YOUR PERSONAL
REPORT:
After you have received your personal reports, determine the
status of your credit file. You should attempt to remove ALL
unfavorable information using the methods outlined herein.
Not all of your credit history is contained in either of the
3 firm's files. Some information may be duplicated, or not
included in the other file. Your name and Social Security
number are used for identification. Current and previous
addresses, spouse's name, and date of birth are used for
further identification. The credit information includes the
merchants names, the subscriber number, credit account
number, date opened, date closed, highest credit limit,
highest amount of credit used, and repayment history. The
last item is encoded into numbers, with a series of ones
indicating perfect repayment.
After you have received your personal reports, determine the
status of your credit file. You should attempt to remove ALL
unfavorable information using the methods outlined herein.
The following descriptions are used to indicate
payment history:
- Current Account - account open or closed in GOOD STANDING
- Inquiry - your credit information was requested by this
firm or store
- Closed Account - credit account closed
- Paid Account - closed account or zero balance
- Credit Account Reinstated - previously closed account NOW
AVAILABLE FOR USE
- Judgment - lawsuit against you... and NOT PAID
- Charge-Off - credit amount can not be collected
- Repossession - charged item returned to merchant
- Foreclosure - collateral sold to collect defaulted
mortgage
- Collection Account - credit account assigned to collection
agency
When you receive your report examine it VERY CAREFULLY. Make
certain that all information is current and accurate. If you
find any error (for example, a loan that you have PAID OFF
is still listed as outstanding), you can take immediate
action to correct the error. You must write out EXACTLY what
the mistake is, and explain the way that the information
SHOULD be listed. For example, "Loan XYZ is NOT outstanding.
It was paid in full on 10/31/8l."
Send photocopies along with all pertinent information to
substantiate your claim. If you receive a computer printout
of your credit file, there should be a space (Usually on the
right-hand side of the report) in which you may PROTEST any
item in your report that you feel is INCORRECT. After you
have done this, make a photocopy, sending one copy back to
the bureau by "CERTIFIED MAIL." When the credit bureau
receives your report and the information in question, they
are required to investigate and ADVISE YOU of the results of
their investigation. There is NO CHARGE for this
investigation! YOU HAVE CREDIT RIGHTS! Due to the Fair
Credit Reporting Act passed in 1971!
Anytime that you are denied credit, you now have the right
to know why you were turned down! If, for instance, you are
turned down for a charge account at a store, you will
receive a statement from the store stating that you were
denied credit and their reason for the denial. If their
reason has anything to do with the fact that the store used
a credit reporting agency, they must provide you with the
name and address of the agency that supplied them with the
report. If this should happen to you, you should make an
appointment within 30 days to visit the credit agency, so
that you can review your report and find out what
information in it is causing you to be DENIED CREDIT.
I
suggest that you always VISIT the credit bureau. Men should
always wear a tie and jacket, and women should dress
conservatively as well. It is very important to look
professional and businesslike. It is also good to bring a
friend along so that they can be witness whatever is said.
Do not let the representative of the credit bureau confuse,
or upset you in any way. If there is ANYTHING that you do
not understand, ask to have it explained again. If there is
any information in that report that is not true, or if you
want to dispute any information on it, don't be afraid to do
so. If the agency is wrong on any item on your credit report
or file, DEMAND a correction. By law, the company MUST
investigate... many bureaus will even try to make the
correction "on the spot?!"
If for some reason you cannot PROVE that the item is in
error or if you are having a disagreement with a certain
creditor, you have the RIGHT to tell your side of the story
in 100 words or less! This will be ADDED to your report.
Often, creditors who see that you have taken the time and
effort to dispute an item in your credit file will NOT
include it in credit worthiness. This can be VERY HELPFUL to
you.
Many bureau representatives will even help you word your
statement. Be sure to use this rule to your ADVANTAGE! After
making any corrections on your report, you have the RIGHT to
DEMAND that the credit bureau send corrected copies of your
report to ALL CREDITORS who have received the incorrect
reports for the LAST 6 MONTHS !
PLEASE NOTE: The credit bureaus WILL NOT do this
automatically! - ONLY WHEN ASKED! - So make sure it gets
done PRONTO! If, when looking over your report, you notice
that it is missing a few POSITIVE items that you recall, you
may want to invest some money to upgrade your report. Some
credit bureaus will call creditors you name as FAVORABLE to
you. If the information that you give turns out to be TRUE,
the item will be ADDED to your report.
HOW TO ERASE "BAD CREDIT" FROM YOUR CREDIT REPORT
Past credit experience which shows delinquent payments,
lawsuits, collection and bankruptcy is most definitely
UNFAVORABLE on your credit report. Even with several other
open accounts in good standing, the unfavorable information
can be a cause of credit DENIAL when applying for new
credit.
Incorrect and unverifiable information can be removed
legally with the assistance of the credit reporting agency
on whose files the unfavorable information appears. To do
this you must contact the respective agency and tell them
that you wish to dispute the particular information that you
feel is injurious to your credit history. All of their
contact info is at the respective agencies website. Legally,
they must write for confirmation of the information to the
source that is reporting it. If NO CONFIRMATION is received
by the agency within 14 days... the information in question
MUST BE DELETED from your file! - and an updated credit
report will be mailed to you for verification!
Utilizing this method will eliminate most of the unfavorable
information on your credit file, particularly that which is
more than one year old, or if the disputed amount is under
$500. Any remaining information after the first attempt can
usually be removed by subsequent attempts, at one month
intervals. Remember, keep on trying over and over again -
PERSISTENCE DOES PAY OFF!
If there is any unfavorable information remaining on your
credit file, you should add a statement to your file that
DISPUTES this information. Remember, the credit agencies
MUST add such a statement, PROVIDING YOU REQUEST IT! If
possible, you may resolve the problem with the creditor in
question. If so, have the creditor contact the credit agency
FOR YOU. <end of ebook>
