oyer probably saw a copy before hiring you and your landlord likely considered it before accepting you as a tenant. Long distance telephone carriers and cell phone companies even look at it before providing their services. And you’ve never even seen your own credit report? In fact, according to a recent study, less than 20% of all Americans have ever seen their credit report. Most people become concerned about their credit report only when they are denied credit. By that time, it’s usually too late.

You should take a look at your credit report at least once every 2 years. This way, information is still accessible and verifiable in the case that you may need to have it corrected. You should also look at your credit report before applying for any credit. This may help to avoid any unwelcome surprises. Allowing you to look at exactly what your loan manager will look at, can prepare you for any questions.

If you’ve never had credit problems, you might think that you need not be concerned. But according to a recent government study, one out of every four credit reports contain errors, one out of every six contain errors that could cause denial of credit. Sometimes Credit reports are accidentally combined, and people with similar names or social security numbers actually share a credit report! It’s not at all uncommon for family members to have overlapping data. Nor is it uncommon for a credit card or loan company to accidentally list you as having missed a payment.

Have you ever received a late notice or collection letter on something that you already have paid? I’m sure you made a phone call or two and straightened it out immediately. But what about the monthly report to the credit bureau? You can’t help but wonder if the mistake got corrected on that report. The only way to find out what is actually on your credit report is to look at it for yourself. When you do, you may be surprised to see that your credit record looks quit different than you expected. The past and present credit accounts that you expected to see, may not be listed, and still other accounts that you did not expect to see might be listed. This is not at all uncommon because creditors are not required to report our account to a credit bureau. They are free to report only the information that they see fit.

This situation may provide for a pleasant surprise, if a past loan that became delinquent doesn’t show up on your report. It may also provide a very unpleasant surprise, if something you thought unimportant was reported. Like maybe a non paid magazine subscription, or even worse, someone else’s delinquent account record. The only way to find out what is on your report is to see a copy for yourself!

Here are some questions and answers that will help explain what a credit report is and how to get one.

What does it mean to have good or bad credit?

Having good credit means that according to your past creditors, your record (credit report) is clean. You made payments, and paid off your past debts satisfactorily. Having bad credit is just the opposite. Your record (credit report) shows that you have not paid off your past debts as agreed. This could mean late payments, collections, non-pays etc… This information is held at the “credit bureau”, and is provided to those businesses that request it.

What is the Fair Credit Reporting Act?

The Fair Credit Reporting Act is the federal law that governs credit bureaus. The law was written to protect consumers from the obvious power that credit bureaus can have over their lives.

Do I have a right to know what my credit report says about me?

Yes, the Fair Credit Reporting Act guarantees you that right. This law also gives you the right to obtain a copy of your report for free, with a letter of denial of credit, if that denial of credit was due to information found on your credit report.

What is on my credit report?

Your credit report contains information about your credit card accounts, loans, charge accounts, and items of public record such as bankruptcies, tax liens, and judgments. It will list each account on record, who the account was with, how much was borrowed, how much was paid, and how timely the payments were made. It will also list any accounts sent to collection agencies, accounts not paid in full, and defaulted loans.

Who has access to my credit report?

According to the Fair Credit Reporting Act, anyone with a “legitimate business need”. However, in most cases the report is only provided to credit grantors, employers or prospective employers, landlords, and insurance underwriters.

Are ALL of my accounts listed on my credit report?

Probably not. Businesses have a right (but not the obligation) to report to any or all credit bureaus, at their discretion. Your previous credit grantors might have reported your credit experience to just one credit bureau, all three large credit bureaus, or they might not have reported it to any credit bureau. However, most large credit grantors report to TRW, Transunion, or Equifax.

What will it cost me to get a copy of my credit report?

You can acquire a credit report from the credit reporting agencies below for free. If you’re located in the United States and Canada, you can do this once a year. You also may obtain a free copy of your report from any credit bureau that provided information that caused you to be turned down for credit.

For complete, up to date information how to receive a copy of your credit report, you may contact the three largest credit bureaus directly at:

TRW (800) 392-1122 Trans Union (714) 738-3800 Equifax (800) 685-1111

This information is provided for informational purposes only. The author assumes No liability. You should retain professional legal or financial assistance if required.

Under the Fair Credit Reporting Act the reporting company and the information provider are responsible for correcting any credit report disputes. However, they must first be made aware that you have credit report disputes. A person can report and correct errors in their credit report by following two easy steps.

Step one is to report your error to the consumer reporting company in writing and make them aware that you have a credit report dispute. Make sure you include all your personal information like your name, address, and a list of each credit report dispute that have. Remember to send your letter by certified mail to prove that you have initiated a credit report dispute. The consumer reporting company will then investigate your credit report disputes and respond in 30 days. If they find there is an error and the credit report dispute can be resolved by correcting it then they will forward the information to the other credit bureaus and your credit report will be revised.

After reviewing your credit report dispute the consumer reporting company may decide that they disagree with the items raised in your credit report dispute and decline to pursue the matter any further. They will send you all of the evidence that they have and the reasons for not pursuing your credit report dispute, along with a copy of your credit report.

Another way to handle a credit report dispute is to contact the particular creditor directly. Again, send the creditor a list of your credit report disputes in writing. Be sure to call your creditor and ask for the specific address of where credit report dispute issues need to be sent to ensure that there is no unnecessary delay in the credit report dispute being investigated. Many companies have a separate address for handling credit report disputes and it can take time for it to be forwarded to the correct address if you do not send it there initially. If you are correct in your credit report dispute and there is an error they will report the error to the credit bureaus and send you notification of the change.

Below is a sample credit report dispute letter :

Date

Your Name

Your Address, City, State, Zip Code

Complaint Department

Name of Company

Address

City, State, Zip Code

Dear Sir or Madam:

I am writing to dispute the following information in my file. I have circled the items I dispute on the attached copy of the report I received.

This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be removed (or request another specific change) to correct the information.

Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.

Sincerely,

Your name

Enclosures: (List what you are enclosing.)