Credit Reports Frequently Asked Questions
(FAQ)
What is a credit report? Who may look at it?
A credit report is a record of your payment history with lenders.
Other lenders use this information to decide whether or not to
extend credit to you.
Credit reports are maintained by credit bureaus. A credit bureau
is a clearinghouse for consumer credit information. It can report
only the information that is provided to it by creditors; it cannot
change information unless instructed to do so by a creditor.
Under the Fair Credit Reporting Act, only someone with a legitimate
or permissible reason can see your credit report. If you apply
for credit, for insurance, or for a job, the potential creditor
or employer has permissible reason to see your report.
How do I get a copy of my credit report?
There are three national credit bureaus which collect information
and issue reports. They are separate businesses. You should get
a copy from each of them.
In Central Indiana, call these numbers for instructions on how
to get your credit report from each of these bureaus:
Trans Union 1-800-916-8800
Experian 1-888-397-3742
CSC Credit Services/Equifax 1-800-759-5979
Is all of my credit history on my credit report?
No, Your creditors may report to only one or two credit bureaus.
Some of your creditors may not report to a credit bureau at all.
Generally, utilities, landlords, doctors and attorneys do not report
to a credit bureau unless your account has gone to collection.
Does a Credit Bureau "rate" my credit?
No. Each credit grantor or lender has different requirements or
criteria for extending credit so it is impossible for anyone to
have an overall "rating." All a credit bureau does is provide a
factual report of your credit history.
How do I correct errors on my credit report?
You can use the form which is part of your credit report or you
can write a letter to dispute incorrect information. Your "dispute" must
be in writing, and you should keep a copy of your letter or dispute
form. By law, the credit bureau must investigate within 30 days
any entry you dispute. When you send your letter, ask for a corrected
copy of the credit report.
Be sure to check all the information on your credit report. Sometimes
errors are made because a name, address or social security number
is listed incorrectly. If the error involves your account with
a creditor, contact the creditor's customer service department
to make sure that your account history is correct. If the creditor
has made a mistake in reporting to the credit bureau, ask the creditor
to submit corrected information.
What can I do to get an error corrected after I have disputed
it several times?
There are several things you can do if you have made an earnest
effort to correct an error:
- You may include a 100-word statement on your credit report
explaining your side of the story. You should send this statement
to each credit bureau which is showing inaccurate information
on your credit report.
- You may contact the Federal Trade Commission which oversees
credit bureaus. Their office in Chicago may be contacted at (312)
353-4423, or access Federal Trade
Comission
- You may also contact the U.S. Public Interest Research Group
in Washington, DC at (202) 546-9707, or access U.S.
Public Interest Research Group
How long does negative information stay on my credit report?
Information, both good and bad, will stay on your credit report
for seven years. Bankruptcy will stay on your credit report for
ten years. There are exceptions to these limits. If you are asking
for a large loan, like a mortgage, over $50,000, buying insurance
over $50,000, or seeking employment where your annual salary will
be more than $20,000, the potential creditor or employer may request
older information.
Can a credit repair clinic help?
Even though it may claim to be able to "remove" bad credit "legally" before
seven or ten years, a credit repair clinic cannot permanently remove
accurate information from your credit report. A credit repair clinic
will dispute information which will be investigated. During the
process, the account will be identified on your credit report as "disputed".
If the information is found to be accurate, it will remain on your
credit records. The credit repair clinic will charge you, usually
a large fee, to obtain copies of your credit reports and to send
letters or dispute forms which you can do for yourself for the
cost of a few postage stamps.
Credit repair organizations may not charge or receive any money
for a service until it is fully performed. A credit repair organization
may not take any action intended to conceal adverse information
from a credit reporting agency or creditor.
How does a divorce affect my credit?
Even if you are divorced, you are responsible for the balance
on all accounts which were opened jointly. It is a good idea to
pay off all balances and close joint accounts as part of the divorce
settlement. If joint accounts are used after the divorce, you are
still responsible for those accounts unless you notify the creditor
in writing that you wish to have your name removed from the account.
What can I do about negative information that is preventing me
from getting credit?
Negative information, if it is accurate, will remain on your credit
report for seven years. The best - and only - thing you can do
is develop a pattern of prompt payments in the future. You may
include a 100-word explanation on your credit report. This is helpful
if negative information is the result of unusual circumstances,
such as divorce, illness or unemployment. You may need to send
this statement to all three credit bureaus.
What can I do to improve my credit rating?
- Don't take on more debt than you can handle.
- Make all payments as promised-in full and on time.
- Don't apply for a lot of credit at once.
- Close accounts and lines of credit that you do not use.
- Check your credit reports each year (especially if you are
planning a major purchase) to make sure all reported information
is correct.
LETTER TO CREDIT BUREAU
| To: |
__________________________________________________________
Credit Bureau |
| Re: |
__________________________________________________________
Your Name |
| Address: |
__________________________________________________________ |
| SSN: |
__________________________________________________________ |
| Please investigate the following items listed
on my credit report because: |
_____ The information is not accurate.
_____ The information does not belong to me. |
| Creditor Name |
Creditor Number |
Account Number |
| __________________ |
________________________ |
__________________ |
| __________________ |
________________________ |
__________________ |
| __________________ |
________________________ |
__________________ |
| __________________ |
________________________ |
__________________ |
| Remarks: |
_________________________________________________________
_________________________________________________________
_________________________________________________________ |
| Please send me a corrected copy of my credit
report. |
| Thank you. |
| Signature |
_______________________________________________________ |
| SSN |
____________-_________-___________ |
| Spouse's Signature |
_______________________________________________________
(if joint) |
| Spouse's SSN |
____________-_________-___________
(if joint) |
CREDIT REPORT REQUEST FORM
| (Not all creditors report to the same agency.
Send a request to each credit reporting agency.) |
| Type or print clearly. Provide all requested
information. |
| _______ Please send a copy of my PERSONAL
credit report |
| _______ Please send a copy of our JOINT
credit report |
| _______ A check or money order is enclosed
(if required) |
| _______ I/We were DENIED CREDIT, EMPLOYMENT
or INSURANCE within the past 30-60 days by: (Name of
Firm Here), because the information contained in my/our credit
files at your agency. A copy of the letter of denial is enclosed.
I/We understand a copy of my/our credit report will be sent
without charge. |
| |
| Date: ____/____/____ |
Daytime Phone: :( ______ ) __________-______________ |
| Your Full Name: |
__________________________________________________
(Last), (First) (M.I.), (Jr.,Sr.,2nd, etc.) |
| Spouse's Full Name: |
_____________________________________________
(Last), (First) (M.I.), (Jr.,Sr.,2nd, etc.) |
| Current Address: |
_____________________________________________ |
| Mailing Address: |
_____________________________________________
(P.O. Box, etc. if different from above) |
| |
City _____________________ State ______ Zip __________ |
| Previous Address(es): |
__________________________________________________
(Past Five Years) |
| Marital Status: |
_________________ |
| Your Date of Birth (DOB): |
____/____/____ |
| Spouse's DOB: |
____/____/____ |
| Your SSN: |
_________-________-_________ |
| Spouse's SSN: |
_________-________-_________ |
| Your Current Employer: |
___________________________________________ |
| Spouse's Current Employer: |
___________________________________________ |
| Your Signature: |
___________________________________________ |
| Spouse's Signature: |
___________________________________________ |
LETTER TO CREDITOR
| Date _____/_____/_____ |
| To: |
________________________________________________ |
| Attention: |
Customer Service Department |
| Re: |
Account Number _______________ |
| |
| Recently I received a copy of my credit report
from _______________________________ Credit Bureau. My account
is incorrect for the following reasons(s): |
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________ |
| |
| Please investigate and correct your records.
Please advise the credit bureau(s) of this corrected information
and send me a letter stating that this has been done. |
| Thank You. |
| Name: |
_______________________________________________________ |
| Address: |
_______________________________________________________ |
Back to Credit Reports |
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