Understanding Your Credit
The "Fair Credit Reporting Act" controls how your credit history is kept, used and shared among lenders and creditors in the USA. It is designed to ensure accuracy as well as the privacy of the information used in credit reports generated by the three major credit reporting agencies. Those agencies are:
Experian
P.O. Box 2104
Allen, TX 75013-2104
1-888-397-3742
www.experian.com
Equifax
P.O. Box 740241
Atlanta, GA 30373-0241
1-800-685-1111
www.equifax.com
Trans Union
2 Baldwin Place
P.O. Box 1000
Chester, PA 19022
1-800-888-4213
www.transunion.com
Student Credit Reporting
Anyone who takes adverse action against you in response to a report supplied by a Credit Reporting Agency – such as denying your application for credit, insurance, or employment – must give you the name, address, and telephone number of the Credit Reporting Agency that provided the report.
- You have a right to know what is in your credit report, including medical information and, usually, the sources of the information. Make sure your report is accurate.
- Get your report for free if a company takes adverse action against you based on the report and you request your report within 60 days of receiving the notice of the action.
- Request one free report a year if you can prove that you are unemployed and plan to look for a job within 60 days, if you are on welfare, or if your report is inaccurate because of fraud. Otherwise a Credit Reporting Agency may charge up to $8.50 for a copy of your report. If you find inaccurate or incomplete information in your report:
- Contact both the Credit Reporting Agency and the company that provided the information to the Credit Reporting Agency.·
- Tell the Credit Reporting Agency in writing what information you believe is inaccurate. The information provider must investigate and report the results to the Credit Reporting Agency. If the information is incorrect, it must notify all nationwide Credit Reporting Agencies to also correct your file. If the reinvestigation does not solve your dispute with the company, ask that your statement regarding the dispute be included in your file. A notice of your dispute must be included any time the Credit Reporting Agency reports the item.
Obtain Three FREE Credit Reports Every Year
Every American is entitled to receive one free copy of their credit report, from EACH of the three credit agencies, every year. Simply go to annualcreditreport.com and follow the directions. This service will give you full access to your credit report, but will not allow you to see your numerical score, although this is available for a nominal fee.
Credit Report Access
Other than yourself, only people with a legitimate business need can get a copy of your report. An employer or a prospective employer can only get your credit report if you give written consent. Student Credit Card Creditors, employers, or insurers cannot get a report that includes medical information without your prior approval.
Duration of Negative Credit Information
A Credit Reporting Agency can report negative information for seven to ten years, and bankruptcy information for ten years. 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 period of time is longer.
When Your Debt is out of Control
If you ever find yourself in a situation where you can't make a monthly payment, notify your student credit card issuer and work out a modified payment plan that reduces your payments to a more manageable level. Be cautious about turning to a debt counseling company to solve your debt problems. Avoid paying such a firm in advance until you find out what the company can really do. Before you sign a contract, check out the organization with the U.S. Better Business Bureau or with your local consumer protection agency.
Counseling services provide assistance to individuals having difficulty budgeting their money and/or meeting necessary monthly expenses. Many organizations, including credit unions, cooperative extension services, and family service centers offer free or low-cost credit counseling.