Your Free Access To Credit Reports And Credit Scores
Difference between a credit report and credit score
A credit report is a collection of the credit accounts of a person that he or she has been operating. It is also called credit history or credit file. Credit reports are issued by credit reporting agencies. The three main agencies that issue credit reports are Equifax, TransUnion and Experian.
A credit score is a numerical representation of your credit history. It can be very annoying for the lenders to go through your complete credit report to assess your credit worthiness. Instead, the information available on your credit report is assigned a numerical value by applying a mathematical formula that becomes your credit score. The information available on different sections of your credit report is weighed on percentage basis.
Free credit reports
The FCRA (Fair Credit Reporting Act) requires you to get free credit report from each of the consumer reporting companies i.e. Equifax, Experian and TransUnion every year. Below are some details about how you can order your free credit reports under the control of FCRA and the FACT (Fair and Accurate Credit Transactions Act) that established the annual credit report program for free.
1. How can you order your report online?
The three consumer reporting companies have maintained a central website www.annualcreditreport.com. You can fill out the Annual Credit Report Request Service form and mail it to the address given on the website or call at their toll-free number to order your free annual credit report. You can order credit reports from each of the three consumer reporting companies at different intervals or at the same time. Every consumer is allowed by law to get one free copy of their credit report from each of the consumer reporting companies every year.
2. Information that you should provide
You will be required to submit your name, address, social security number and date of birth. If you have relocated during the last two years, you will be required to provide your previous address. The consumer reporting companies may also ask some confidential information such as your mortgage payments. Every consumer reporting company will ask different questions depending on the sources of information on each file.
3. Incorrect or incomplete information on your report
The FCRA states that the consumer reporting agency and the information provider must be held responsible for incorrect or incomplete information on a credit report. The information provider can be any person or corporation that provides your reports to consumer reporting companies. You must contact the information provider and the consumer reporting companies to take complete advantage of your rights as imposed by law.
You must tell the consumer reporting companies about the information you think is correct. These companies must investigate the incorrect information in 30 days time period unless your dispute is considered immature. The consumer reporting companies must also hand over all the appropriate data provided by you to proof the inaccuracy to the person or corporation that presented the information. The information provider must scrutinize, assess the appropriate information and present the results to the consumer reporting agencies. If the information provider confirms the inaccuracy of information, it should inform all the consumer reporting companies so they can rectify the information in your file.
5. What if the consumer reporting agency or information providers refuse to rectify the information?
If the inaccurate information on your report is not resolved with the consumer reporting company, you can request for your statement of dispute to be attached in your file and prospective credit reports. You may also ask the consumer reporting company to give your statement of dispute to any person or body who has acquired a copy of your credit report recently.
6. For how long a consumer reporting company can report negative information?
A consumer reporting company can report negative information about your credit report for almost seven years. Information related to a lawsuit or an outstanding judgment against you can be reported for the next seven years or until the law of restrictions expire. However, there is no restriction of time to report information on the following cases:
a. Criminal offenses
b. Information reported in reaction to your job application that is paying you $ 75,000 or above for a year.
c. Any information that is reported because you applied for a credit of $150,000 or above or may be life insurance.