Common Questions About Your Credit & Credit Reports
I was denied credit. Can I find out why?
Yes. If you applied for and were denied credit, the Equal Credit Opportunity Act requires the creditor who denied you credit to tell you the specific reasons for your denial. For example, the creditor must tell you whether the denial was because you have “no credit file” with a Consumer Reporting Agency or because the Consumer Reporting Agency says you have “delinquent obligations.” This law also requires that creditors consider, upon your request, additional information you might supply about your credit history.
How do I contact the Consumer Reporting Agency that has my file?
If your application was denied because of information supplied by a Consumer Reporting Agency, the company that denied your application must provide you with the name, address and telephone numbers of the Consumer Reporting Agency. Please visit our educational article “Writing Your Dispute Letters” for addresses and information.
Do I have the right to know what the report says?
Yes, if you request it. The Consumer Reporting Agency is required to give you all the information in your report and, in most cases, the sources of that information. However, the Consumer Reporting Agency is not required to reveal any credit scores, credit rating, or risk evaluation. You also have the right to be told upon request the name of anyone who received a report on you in the past 12 months, and you may also request the address and phone number of each such person. (If your inquiry concerns a job application, you can get the names of those who received a report during the past two years.) The Consumer Reporting Agency will also provide you with a written summary of your rights under the Fair Credit Reporting Act.
Is this information free?
Yes, in certain circumstances. Under the “FACT ACT”, which amended the FCRA, and became effective in December 2004, you are entitled to one free credit report from each of the three main Credit Reporting Agencies in any 12 month period. Additionally, if your application was denied because of information furnished by the Consumer Reporting Agency, and if you request a copy of your report within 60 days of receiving the denial notice, you are entitled to a copy of your credit report without charge. Finally, if you certify in writing that you have been the victim of identity theft, you are entitled to one free report once in any 12 month period.
What can I do if the information is inaccurate or incomplete?
Notify the Consumer Reporting Agency in writing by certified mail. Also, visit some of our educational articles for more details on what your letter should say and what your rights are to have the error corrected. A certified letter is the best way to protect your rights because the CRA’s like to argue they never received your internet or other request. Remember in your letter to be as specific as possible. The agency is required to delete or reinvestigate the items in question. If the new investigation reveals an error, a corrected consumer report will be sent to you, and upon your request, to anyone who received your report in the past six months (Job applicants can have corrected reports sent to anyone who received a copy during the past two years.). If you dispute the accuracy of the information in your file and the Consumer Reporting Agency deletes it, the agency can not put the disputed information back into your file without notifying you in writing. If they did, contact us.
If you contact a consumer reporting agency to dispute the accuracy or completeness of information in your file, the reporting agency may forward your dispute to the creditor or other person who furnished the information to the agency. But you also should consider contacting that source of information directly by sending them a letter via certified mail. Many creditors have a special address for this purpose, and have a duty to avoid reporting inaccurate information. Also, if you tell anyone that you dispute the accuracy of information, then that person must note that the information is disputed whenever it is provided to a consumer reporting agency. If the inaccurate information continues to be reported and you feel it is affecting your ability to obtain additional credit, your best option is to contact us.
What can I do if the Consumer Reporting Agency won’t modify or correct my report?
The new investigation may not resolve your dispute with the Consumer Reporting Agency. Many times they offer you to contact the Consumer Reporting Agency to include your version of the disputed information in your file and in future reports. This does not help correct or improve your FICO score. Please note that if you decide to do this, you can submit a written statement of any length to be included in your file, but the Consumer Reporting Agency has the option to write a clear summary of the dispute and limit it to 100 words. At your request, the Consumer Reporting Agency will also show your version or a summary of your version to anyone who recently received a copy of the old report. There is no charge for this service if it’s requested within 30 days after you receive notice of your application denial. After that, there may be a reasonable charge.
Are credit reports prepared for insurance or job applicants different?
If a report is prepared on you in response to an insurance or job application, it may be an Investigative Consumer Report. These are much more detailed than regular consumer reports. They often involve interviews with acquaintances about your lifestyle, character, and reputation. Unlike regular consumer reports, you’ll be notified in writing when a company orders an investigative report about you. This notice will also explain your right to ask for additional information about the report from the company you applied to, or you may prefer to obtain a complete disclosure by contacting the Consumer Reporting Agency. Note that the Consumer Reporting Agency does not have to reveal the sources of the investigative information.
If an employer intends to take any adverse action against you based on a consumer report, whether or not it is an investigative consumer report, the employer must first give you a copy of your report and a summary of your rights under the Federal Fair Credit Reporting Act.
How long can Consumer Reporting Agencies report unfavorable information?
Generally seven years. Adverse information can be reported after that for the following reasons:
- Bankruptcy information can be reported for 10 years – the time starts from the date of the filing for either the Chapter 7 or Chapter 13.
- Information reported because of an application for a job with a salary of more than $75,000 has no time limitations;
- Information reported because of an application for more than $150,000 worth of credit or life insurance has no time limitation;
- Information concerning a lawsuit or judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.
Can anyone get a copy of the report?
No, it’s given only to those with certain specified permissible purposes, which means, keeping it simple, for a financial transaction related to a consumer. If someone has obtained your credit report without your permission or knowledge, contact us.
Do I have to be told before someone sees my credit report?
Yes and No. A person may request your consumer report only with your permission. However, a written authorization is usually required when applying for a house or a car. Also, a Consumer Reporting Agency may not provide a consumer report to an employer unless the employer has your written permission. Additionally, your written permission is needed before medical information may be reported by a Consumer Reporting Agency for credit, insurance, or employment purposes. If you feel your credit report was pulled without your knowledge or your permission, contact us.
What if I think a Credit Bureau has violated my rights under the law?
If you think a Consumer Reporting Agency or other person has violated your rights, and you have a viable cause of action, you are entitled to have them pay your actual damages, statutory damages and your attorney’s fee. Please read some of the other educational articles provided to you free of charge and contact us.