Frequently Asked Credit Questions
What is a credit bureau and what does it do?
A credit bureau is a clearinghouse for credit information. Credit grantors provide the bureau with factual information on how their customers pay their accounts. The bureau assembles this information, along with public record information obtained from courthouses nationwide, into a file on each consumer. Credit grantors can also obtain credit files about consumers who wish to open accounts with them.
Credit bureaus do not rate your credit. Each credit grantor or lender has different requirements for the granting of credit, so it is impossible for anyone to create an overall "rating". Credit bureaus do not approve or reject consumer applications for credit. They simply report the information provided by the credit grantors.
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What does a credit report contain?
The report of rile may contain any of the following information about you:
- Identifying information such as your name, current and previous addresses, social security number, telephone number, date of birth and current and previous employer.
- Credit information including creditor name, account number and a record of the payment history.
- Public record information such as tax liens, judgments, bankruptcies, etc.
Inquires - Lists credit grantors and other authorized parties who have reviewed the credit report. It also lists companies that receive your name and address information for the purpose of offering you credit.
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Do credit reports contain sensitive personal information?
Absolutely not. Credit reports do not contain any information about a person’s character, lifestyle, religion, national origin, political affiliation, sexual preferences, friends, or relatives. Nor do credit bureaus collect or transmit data on an individual’s medical history.
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What are my rights regarding my credit file?
You have the right to obtain a copy of your credit file from a consumer credit reporting agency. There is no fee if, within the past 60 days, you have been turned down for credit, employment or insurance because of information in your credit report.
You have the right to dispute inaccurate information by contacting the consumer credit reporting agency directly. However, neither you nor any credit service organization has the right to have accurate, current and verifiable information removed from your credit report. Generally, under the Fair Credit Reporting Act, the consumer credit reporting agency is obligated to remove accurate, negative information from your report only if it is more than 7 years old and bankruptcy information can be reported for 10 years. If you have notified a credit reporting agency that you dispute the accuracy of information in your file, the consumer credit reporting agency is obligated to make an investigation and modify or remove inaccurate information. The consumer credit reporting agency may not charge a fee for this service. Any relevant information and copies of all documents you have concerning the disputed information should be given to the consumer credit reporting agency. If the investigation does not resolve the dispute to your satisfaction, you may send a brief statement not to exceed 100 words to the consumer credit reporting agency to keep in your credit file, explaining why you think the information in the credit file is inaccurate. The consumer credit reporting agency is obligated to include your statement or a summary of your statement about disputed information in any report it issues about you.
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How long does information remain on my credit report?
In accordance with the Fair Credit Reporting Act, in most cases, accounts that contain adverse information may remain on your credit report for up to seven years from the date of the first delinquency on the account. Civil judgments remain on file for seven years from the date filed. Tax liens remain on file seven years from the date paid. Tax liens that are not paid will remain on file indefinitely. If the tax lien is not paid it will remain on the file indefinitely. Chapter 13 bankruptcies, which have been discharged remain on file for seven years. All other bankruptcies remain on file for ten years.
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How do I obtain a copy of my credit report?
Once you are a client, we can give you a consumer copy of your report, or if you wish you can contact the three national bureaus yourself.
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How do I correct errors or dispute information in my credit report?
The best method of disputing inaccurate information is to write a letter to the three separate bureaus separately and include the following information, and a reason why each account is inaccurate.
First, middle, and last names (including Jr., Sr., III)
Current address
Previous address (if you’ve moved in the last six months)
Social Security Number
Date of birth
Signature
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Who can access my file?
A consumer reporting agency may furnish a consumer report under the following circumstances:
- In response to a court order or a Federal Grand Jury Subpoena.
- In accordance with the written instruction of the consumer.
- To a person whom they have reason to believe:
- Intends to use the report in connection with the extension of credit, or review or collection of an account.
- Intends to use the report for determining the eligibility for a government license or benefit where the government agency is required to consider the consumer’s financial status.
- Otherwise has a legitimate business need for the report in connection with a business transaction involving the consumer
Permissible purpose is defined in Section 604 of the Fair Credit Reporting Act.
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How do I build a good credit history?
Establishing a good credit history can take some time. However, the following steps may help in building a good credit foundation.
- Apply for credit from lenders such as department stores or local retailers. In general, they often have less restrictive requirements on granting credit.
- Make a large down payment for a purchase and negotiate favorable credit payments for the remaining balance.
- Apply for a small loan from your bank or credit union and pay back the debt with diligence.
If you are rejected for credit, determine why. You may have been rejected for credit based on your current income or the length of time spent at your current job. In time these factors may change.
You may wish to seek the aid of a Consumer Credit Counseling Service (CCCS). These institutions are members of the National Foundation for Consumer Credit (NFCC), which is a nonprofit organization with member offices in all US States and Canada . CCCS counselors will work with you to establish a repayment plan that will satisfy you and your creditors. They will also help you plan your budget for the future. To find the CCCS office nearest you by mail or phone:
- National Foundation for Consumer Credit, Inc.
8611 Second Avenue
Suite 100
Silver Spring, MD 20910
1-800-388-2227
Take caution when dealing with any credit "repair" institutions. Contrary to what many think, they cannot have accurate information removed from your credit file. In addition, you may wish to contact your state attorney general or local consumer protection agency for more information on such institutions.
Once you have obtained credit, pay your bills consistently and on time. This will help establish a positive credit history, which in turn will help you when applying for future credit.
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What should I do if I’m a possible victim of credit fraud?
- Immediately report the incident to the police. This is especially true if it involves stolen identification. You should also insist on a complaint number.
- Immediately report all stolen cards to the issuers and have them issue new cards.
- If checks were stolen, notify your bank and have them close the account.
- Be prepared to fill out affidavits of forgery to establish your innocence.
- Contact the Social Security Administration if you believe someone is using your social security number for employment purposes. If you have previously used your social security number to establish new credit, it is recommended that you do not change your number as this may result in future complications.
- If ATM cards are involved, replace them with new cards and use passwords that are different from those used previously.
- Contact the postal inspector if you suspect mail theft or fraud. These are felony crimes.
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How can I remove my name from mailing lists?
If you wish to have your name and address removed from all mailing lists offered by the main consumer credit-reporting agencies: Trans Union, Experian, Equifax and INNOVIS, call 888-5OPTOUT (888-567-8688), or write to the following address:
Trans Union LLC’s Name Removal Option
P.O. Box 97328
Jackson, MS 39288-7328
Requests should include the following information:
First, middle, and last names (including Jr., Sr., III)
Current address
Previous address (if you’ve moved in the last six months)
Social Security Number
Date of birth
Signature
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How do I contact the three credit bureaus?
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P. O. Box 740241
Atlanta, GA 30374
Tel: 800-685-1111 |
Allen, TX. 75013 Tel: 888-397-3742
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P. O. Box 1000
Chester, PA 19022
Tel: 800-888-4213 |
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| 4090 SW 177th Ave.
Aloha, OR. 97007
Phone: (503) 259-8655
Fax: (503) 259-8899 |
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