Consumer Info Now - Credit Report

Credit Report

Credit report also known as credit history is actually a record of an individual’s monetary transactions like its past borrowing and repaying; all data related to defaults in payments and bankruptcy. It can also be termed as credit reputation.

When an individual approaches a bank or a financial institution for a loan or credit and fills up an application form, the information is sent to the credit bureau along with regular updates on the status of their credit accounts, address and any other changes that have been incorporated since the last time a credit was requested for.

This information provided is then used by the credit lenders like credit card issuers or companies to evaluate an individual’s or company’s credit worthiness, i.e. ascertaining whether the individual or entity is capable of repaying the debt. The data also helps the lenders to decide whether the credit provided can be extended and what terms must be agreed upon. In the present day almost the whole of the financial sector has adopted the risk-based pricing which has made credit report very important as this is the only factor to choose the annual percentage rate or APR.

According to the FCRA or the Fair credit report Act, each of the consumer reporting agencies in the United States – TransUnion, Equifax and Experian- must provide you with a free copy of your credit report (if requested) once in every twelve months. FCRA also endorses accuracy and confidentiality of the data stored in the files of the consumer reporting companies.

Your credit report contains information like what is your mailing address, contact numbers, Social Security number, date of birth, employment information, how do you pay your bills, whether you have any history of being sued and arrested or have you ever filed for bankruptcy. All the data is then sold by the credit report agencies to various creditors, employers, financial organizations, insurers and other businesses who use these details for determining whether you are eligible for credit, insurance, employment and even renting a home.

Each individual has the right and authority to know who has enquired about his credit file or has requested for an inspection of your credit report in the last six months.

What information cannot be reported in your report?
Certain personal information cannot be included in your credit report. These are:
► Medical information (unless you give an approval)
► Bankruptcy notice that is more than 10 years old
► Reports about debts that are more than 7 years old
Certain pieces of information, however, may remain on your report for a indefinite period of time. These are:
• Details about an employment with a salary of more than $75,000.
• A credit transaction involving (or may be expected to involve) an amount of $150,000 or more.
• An application for life insurance (or any other credit) for more than $150,000.
• Any unpaid taxes.

Who can access your credit report?
The following people can gain access to your credit report:
• insurance companies
• any organization that is considering your application for a loan
• landlords
• agencies who are considering your application for a government license
• any government organization
• employers but only with your consent

Do I have the right to find out what is there in my credit report?
Most certainly; in fact according to the federal and state laws, you must review your credit report regularly to check for accuracy. It is strongly recommended in today’s market as identity theft is becoming increasingly common.

Besides, credit reports can also be used for renting a house, seeking employment and also getting insurance. So it is essential that the information in the report is correct and up dated.
Unlike the old times, you can access your credit report today absolutely free of charge.

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