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Facts About Credit Reporting
Identity Theft
Credit Report FAQs
Get a Free Credit Report
Web Addresses of the Credit
Bureaus
Your credit is an essential part of your lending process.
Your payment history is supplied to credit bureaus by the
creditors you have credit with. This includes all accounts
– open, closed, and inactive. Payment in full of an
account does not remove your payment history. The length of
time credit information remains in your file is outlined below:
Credit bureaus keep your information for up to ten years.
- Closed/Inactive Accounts: 10 years from date of last activity
- Chapters 7, 11 & 13 Bankruptcy: 10 years from date
of filing
- Collection Accounts/Derogatory Accounts: 7 years
- Public Records: 7 years from date of payment or indefinitely
if the public record is an unpaid tax lien.
DIVORCE: A divorce decree does
not release you from legal responsibility on any debts. You
must contact each creditor and request they release you from
obligation of the debt. Once you have obtained this, you may
have your credit history updated.
INNACURATE INFORMATION: If
you have requested that the credit bureau update and correct
inaccurate information and the investigation results in a
change, you have the right to request that the credit bureaus
send your revised credit report to anyone who has requested
your credit file within the past six months for any purpose
or the past two years for employment.
PRE-APPROVED CREDIT ACCOUNTS: Many credit card companies and lenders use credit bureau databases
to offer pre-approved credit to you. If you prefer not to
receive such offers write to Equifax at the address listed
below. Include your full name, complete address, Social Security
number, and signature. Your name will be removed from the
lists provided. Equifax will also send your request to Experian
and Trans Union. Not all companies use these three credit
bureaus as their source of information so you may continue
to receive offers.
You can reduce the number of direct mail marketing pieces
you receive through the mail, by telephone or e-mail. Requests
should be made to the addresses listed below. Make sure you
include your name, address, telephone number, and e-mail address
(if applicable).
Mail Preference Service
c/o Direct Marketing Assn.
P.O. Box 9008
Farmingdale, NY 11735-9008
Telephone Preference Service
c/o Direct Marketing Assn.
P.O. Box 9014
Farmingdale, NY 11735-9014
E-mail Preference Service
www.e-mps.org
Equifax Options
P.O. Box 740123
Atlanta, GA 30374-0123
Your consent is required for all credit reports that are
provided to employers or for reports that contain medical
information. A credit reporting agency may not give out information
about you without your written consent. A credit reporting
agency may not give out medical information about you without
your written permission.
For questions or concerns about a credit reporting agency
or creditor contact: Federal Trade Commission – CRC,
600 Pennsylvania Avenue, NW, Washington, DC, 20580, or call
877-FTC-HELP.
Your name, address, and Social Security number can be provided
by credit reporting agencies to businesses that have a legitimate
need to locate or identify you.
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Identity theft can happen to anyone, including you. While
it isn’t possible to entirely prevent identity theft
and credit fraud, you can reduce the chance that it will happen
to you.
Guard your personal information. Never give out your Social
Security number, credit card number or any other personal
information to anyone, either over the phone or on the internet,
for any purpose you do not fully understand. Don’t carry
your Social Security card with you; keep it in a safe place.
When possible, request that other types of identity be used
such as a password.
Choose and protect passwords and PIN numbers carefully. Don’t
carry PIN numbers and passwords with you; commit them to memory.
Choose passwords that cannot be easily connected to you like
your birth date, phone number, mother’s maiden name
or the last four digits of your Social Security number.
Guard your credit cards and receipts. Only carry a minimum
number of cards with you. Lock up any cards you are not carrying
in a secure location. If you have a card you aren’t
using, contact the creditor and request the account be closed.
Report a lost or stolen card to the issuer as soon as you
discover its loss. If you have been granted a new card and
you don’t receive it in the time limit expressed by
the grantor, contact them immediately. Sign your new cards
upon receipt and make sure you activate them with the creditor.
Pay attention when you use your cards at all times. When you
give a cashier your card, don’t allow the card to leave
your sight. Don’t allow the cashier to place your receipt
in the bag with your purchases.
Secure your personal information at home. This is always
important but especially if you have a roommate, employ someone
in your home, work at home or are having work done in your
home. Personal information includes your credit cards bills.
Shelter your mail. Tear up or shred credit/debit card purchase
receipts, bank statements, tax returns, expired credit/debit
cards, credit card statements, and pre-approved credit offers.
Don’t leave mail in your mailbox once it has been delivered.
Notify the post office if you are going away and request a
vacation hold on your mail. You can reach the postal service
at 800-275-8777 or www.usps.com <link>. Don’t
leave outgoing mail in your mailbox for pickup. Instead, deliver
it to the post office or to a USPS collection box. Know your
billing cycles and contact your creditors if your bills are
late. If your account has been stolen, the identity thief
could have changed your address.
Make sure your employer safeguards your information. Check
with your employer to make sure that your personal information
is only given to those who legitimately have a right to it
and that it is kept in a secure location.
If you suspect that someone has used your information fraudulently,
immediately contact each of the credit reporting agencies
listed below:
Equifax 800-525-6285
Experian 888-397-3742
Trans Union 800-680-7289
To request a copy of your credit report to see if any additional
credit has been opened in your name without your knowledge
and/or permission use the numbers listed below:
Equifax 800-685-1111
Experian 888-397-3742
Trans Union 800-916-8800
Identity theft and credit fraud is a nationwide problem and,
according to the FBI, one of the fastest-growing crimes today.
Your life can become terribly inconvenienced for an incredible
amount of time. The extra time you take to safeguard yourself
and your personal information will be well worth the effort.
For questions or concerns about identity theft contact:
Identity Theft Date Clearinghouse
600 Pennsylvania Avenue, NW,
Washington, DC, 20580.
877-ID-THEFT
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- What is a credit bureau?
- How do credit bureaus get their
information?
- What is a “FICO”
or credit score?
- How can I improve my credit
score?
- Should I use a company to fix
my credit?
- How do I handle inaccurate
information?
* * *
1. What is
a credit bureau?
A credit bureau is an organization that compiles credit information
about consumers. This information includes your identity,
your creditors and payment histories, and your public records.
This information is sold to credit grantors to be used to
determine whether or not a potential customer is credit worthy
or for the collection of a debt.
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2. How do credit
bureaus get their information?
Information is provided to credit bureaus directly from credit
grantors such as retailers, banks, mortgage companies, and
collection agencies. Public record information that is monetary-related,
such as judgments and tax liens, comes directly from the courts.
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3. What is
a “FICO” or credit score?
A FICO or credit score is a sum that indicates how likely
you are to repay a debt. Your credit score is derived from
several factors including: payment history, amount of outstanding
debt, length of credit history, amount of credit used compared
to the amount of credit available, and severity and frequency
of derogatory credit information. All of these factors are
considered when determining how you will manage your credit
in the future. Your credit score is not a part of your credit
file, merely a tool used by credit grantors, and changes as
your information changes.
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4. How can
I improve my credit score?
You can raise your credit score by following some easy common
practices.
A) Pay all of your bills on time. Tardiness on payments will
have a negative effect on your score.
B) Control your debt. Keep account balances below at least
75% of the available credit.
C) Keep inquiries to a minimum. A large number of inquiries
over a short period of time may indicate that 1) you are opening
more credit account which indicates current or future difficulties.
and 2) you are overextending yourself by adding more debt
than you can handle.
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5. Should I
use a company to fix my credit?
That is entirely up to you but keep in mind that accurate
information cannot be removed from your credit file. Credit
fixing companies will charge you a fee and you can do a lot
for yourself at almost no cost. Rebuilding your credit score
is not something that can be done overnight. It takes time
and diligence on your part.
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6. How do I
handle inaccurate information?
To file a dispute about inaccurate information you must explain
your concerns in writing. In your letter include the following
information:
· Your full name
· Your complete mailing address
· Your date of birth
· Your Social Security number
· The name and account number of the creditor and the
item you are questioning.
· The reason for your disagreement. Be very specific.
· Include copies of documents that back up your position.
· A copy of your credit report with the questioned
items highlighted.
· Your signature.
Send your letter using certified mail with a return receipt
requested. Save the receipt, copies of your letter and documentation.
These items can be used to document your position with your
creditors and credit bureaus. Send your letter to the three
national credit bureaus:
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
Experian
P.O. Box 9595
Allen, TX 75013
Trans Union
P.O. Box 2000
Chester, PA 19022
Your letter will not guarantee that changes will be made
to your credit report. It only guarantees that the credit
bureaus will investigate your credit report. If any changes
are made, you will be notified within 30 days. Keep copies
of all correspondence.
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You can get a free credit report simply by visiting www.annualcreditreport.com.
Visit them anytime to start the process.
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Experian: www.experian.com/consumer/index.html
Equifax: www.equifax.com
Trans Union: www.truecredit.com
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