Credit Reporting
What is your credit report?
If you’ve never seen your credit report, you should know that you are entitled to a copy of your free annual credit report from the three credit reporting agencies.
The report is quite long and can look pretty confusing, but it’s basically broken down into the following categories:
1) Potentially negative items: The information in this section is usually removed 7 years from the date of the missed payment that led to the delinquency. They may remain on the report for 7 years, except for Chapter 7 bankruptcy, Chapter 11 bankrtupcy, Chapter 12 bankruptcy, and unpaid tax liens, which may remain on the report for up to 10 years. A paid tax lien may remain on the report for up to 7 years.
2) Accounts in good standing: Those accounts stay on your credit report as long as they are in good standing. Once they are closed or paid off, they may continue to appear on the report for up to 10 years.
3) Requests for your credit history: The agencies make your credit history available to current and prospective creditors and employers as permitted by law. This section will contain a list of the inquiries, which were prompted by some action you took. They may list these inquiries for up to 2 years so that you can get a record of the companies that accessed your credit information. If you apply for a loan or credit card, you will see the name of the company or bank in that section. This section is also shared with those who make inquiries about your credit history.
There is also a section for inquiries which the agency will not share with others. You may find in this section companies or banks that may have wanted to access your credit without your consent or request to extend pre-approved loans to you, a potential employer or investor, or companies or banks you currently have an account with.
4) Personal information: You will find a listing of your name or names, your address history, spouse’s name, birth date, telephone numbers, and occupation or employers.
The agencies collect information about you from public records, your creditors and other sources. Law prohibits them from disclosing medical information. If you disagree with any information contained within the credit report, you have a right to file a dispute with any of the credit reporting agencies. They are governed by the FTC. For more information, see www.ftc.gov/credit.