Why are credit reports important? Obviously if you want to buy a house or a car and you wish to finance you want a good credit rating. Lower interest rates and better terms accompany good ratings. Despite the importance of these files it is estimated that about 70% of these files contain inaccurate information or errors.
They may be so inaccurate that a consumer may be denied for a loan or employment.
Regular reviewing of your credit report information is essential to ensure information that is reported is accurate.
Not All Reports Are the Same
There are two types of reports. A "Personal Credit Report" and a "Credit Report".
A Personal Report contains all information that a credit agency accumulates about a consumer as well as a record of all credit inquiries contained in the report that, for creditors who are granting loans, utilize for credit worthiness.
A Credit Report does not have all the information that a credit bureau maintains on the consumer. Because Credit Companies generally take a dim view on a high number of credit inquiries, this report does not include that information. They also exclude any medical information or any other personal information that isn't needed to determine credit viability. Prospective employers and Landlords can access a "Limited Credit Report" that shows overall general credit history but does not include account numbers for the persons privacy.
Accessing your Credit Report
FACTA ( Fair and Accurate Credit Transaction Act ) legislation gave the consumer access to their credit report for free from the credit reporting agencies so there is no reason that you cannot check your credit report. You should review your report from each agency at least once a year ( every 4 months if you get a report from the big 3 agencies, Equifax, transunion and Experian ) and look it over for any discrepancies. Surprisingly the 3 agencies do not have identical information which is why credit scores vary. If you do find a discrepancy the FCRA ( Fair Credit Reporting Act ) establishes processes where you can remove fraudulent, incorrect or outdated information. Any discrepancies in your report can be addressed to the agency reporting the inaccurate data. If the inaccurate information being reported is a result of Identity Theft the written request should also include an Identity Theft Report and/or FTC Identity Theft Affidavit, Copy of Government issued Identification, additional supporting documents and it is recommended that you also file and include a police report.
I hope this information is informative and useful. If we are to reduce our exposure to this crime we must be aware of as many aspects of our identity and know how to combat any inaccuracies.
They may be so inaccurate that a consumer may be denied for a loan or employment.
Regular reviewing of your credit report information is essential to ensure information that is reported is accurate.
Not All Reports Are the Same
There are two types of reports. A "Personal Credit Report" and a "Credit Report".
A Personal Report contains all information that a credit agency accumulates about a consumer as well as a record of all credit inquiries contained in the report that, for creditors who are granting loans, utilize for credit worthiness.
A Credit Report does not have all the information that a credit bureau maintains on the consumer. Because Credit Companies generally take a dim view on a high number of credit inquiries, this report does not include that information. They also exclude any medical information or any other personal information that isn't needed to determine credit viability. Prospective employers and Landlords can access a "Limited Credit Report" that shows overall general credit history but does not include account numbers for the persons privacy.
Accessing your Credit Report
FACTA ( Fair and Accurate Credit Transaction Act ) legislation gave the consumer access to their credit report for free from the credit reporting agencies so there is no reason that you cannot check your credit report. You should review your report from each agency at least once a year ( every 4 months if you get a report from the big 3 agencies, Equifax, transunion and Experian ) and look it over for any discrepancies. Surprisingly the 3 agencies do not have identical information which is why credit scores vary. If you do find a discrepancy the FCRA ( Fair Credit Reporting Act ) establishes processes where you can remove fraudulent, incorrect or outdated information. Any discrepancies in your report can be addressed to the agency reporting the inaccurate data. If the inaccurate information being reported is a result of Identity Theft the written request should also include an Identity Theft Report and/or FTC Identity Theft Affidavit, Copy of Government issued Identification, additional supporting documents and it is recommended that you also file and include a police report.
I hope this information is informative and useful. If we are to reduce our exposure to this crime we must be aware of as many aspects of our identity and know how to combat any inaccuracies.
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