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Credit Report FAQ's
Get answers to common credit report questions.
At GFM, we know there is power in knowledge. Therefore, we have assembled some of our client's most frequently asked questions regarding credit reports, along with our answers below.
What type of information do credit bureaus collect and sell?
Credit reporting bureaus collect and sell four basic types of information:
- Identification and employment information - Your name, birth date, Social Security number, employer, and spouse's name are routinely noted. The bureaus also may provide information about your employment history, home ownership, income, and previous addresses if a creditor requests this type of information.
- Payment history - Your accounts with different creditors are listed, showing how much credit has been extended and whether you've paid on time. Related events, such as referral of an overdue account to a collection agency, are also commonly noted.
- Inquiries - Credit reporting bureaus must maintain a record of all creditors who have asked for your credit history within the past year, along with a record of those persons or businesses requesting your credit history for employment purposes for the past two years.
- Public record information - Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may appear in your report.
Do I have a right to know what's in my report?
Yes. If you request a copy of your report, the credit reporting bureau (CRB) must tell you everything in your report, and in most cases, the sources of the information too. They must also provide you with a list of everyone who has requested your report within the past year (two years for employment related requests.)
How can I obtain a copy of my credit report?
You are entitled to receive a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and Trans Union) once a year. To obtain yours, visit:
Annual Credit Report
1.877.322.8228
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
www.annualcreditreport.com
If anyone has denied your application for credit, insurance, or employment based on information provided to them from a credit bureau, they are required to provide you with the name, address, and telephone number of the bureau that provided the report.
Is there a charge for my report?
No. You may obtain a free credit report from all three major credit reporting bureaus once every 12 months by utilizing the information above.
Under federal law, you are also entitled to a free credit report in a few other circumstances. For instance, if a company takes adverse action against you, such as denying your application for credit, insurance, or employment, you may receive a free copy of your credit report from that bureau if requested within 60 days of receiving the notice of the action. The notice will give you the name, address, and phone number of the appropriate bureau.
In addition, you're entitled to one free report a year if you certify in writing that (1) you're unemployed and plan to look for a job within 60 days, (2) you're on welfare, or (3) your report is inaccurate because of fraud. Otherwise, a credit reporting agency may charge you for a copy of your report.
Don't wait until there is a problem before obtaining a copy of your credit report. Consider reviewing your credit history for inaccuracies or omissions similar to a yearly physical, because it is just as necessary to maintaining your financial health. It could be especially important if you're considering a major purchase, such as buying a home or a car.
What is a credit score?
To allow lenders to quickly compare your history to those of other consumers, the information on a credit profile is often compiled into a single number called a credit score. This score indicates your credit worthiness, or simply put - how likely it is that you will pay back the money loaned.
The original credit-scoring model was developed by Fair Isaacs and Company, and is therefore referred to as a FICO score. Scores range from 300 to 850, with lower scores indicating more credit risk and higher scores indicating little credit risk. A credit score of 750 would be considered excellent, 720 would be considered very good, 650 would be considered good, and 580 or below would be considered poor. The FICO website (www.myfico.com) provides more information on credit scores.
Recently, the three major credit bureaus have developed their own version of a credit score called the Vanguard score. However, this score has yet to be adopted by major lenders, and is presently less useful for consumers than the FICO score since 90% of the largest banks still use the FICO score.
How does my credit score affect me?
The higher your credit score, the less it will cost you to borrow money.
Does my free credit report show me my credit score?
No. In order to obtain the credit score given from each individual credit reporting bureau, you will need to contact each one directly. They will typically charge for this information.
How can I reach the three main credit reporting bureaus?
Equifax
1.800.685.1111
www.equifax.com
Experian
1.888-EXPERIAN (397.3742)
www.experian.com
Trans Union
1.800.916.8800
www.Trans Union.com
Again, because your credit report affects so many aspects of everyday life, it is very important to ensure that the information it contains is correct and accurate.
