| Topic - Credit Reports Demystified | Education Center |
Does the mere thought of what might be on your credit report send a chill up your spine? If so, take heart: credit reports don’t have to be intimidating, and knowing exactly what’s on your report is a critical step towards getting a grip on your debt.
And even if you have don’t have debt problems, you should still be aware of what’s on your credit report. This is especially important if you're considering a major purchase, such as a home or a car. Checking in advance on the accuracy of the information in your report could speed the credit-granting process
What is it?
Simply put, a credit report is a record of where you work and live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy. If you have ever applied for a credit card, car loan, student loan or mortgage, chances are one or even all three of the major credit reporting agencies have information about you.
How do I get my report?
Contact the major credit reporting agencies. Since more than one agency may have a file on you, with different information, you’ll probably want to contact each one. The three major credit agencies:
The Website for each agency allows you to order your report online. There’s generally an $8.00 fee, although depending on your state of residence or several special circumstances, the report may cost slightly less, or may even be free.
What exactly is on the report?
There are generally four kinds of information:
Where do they get all that information?
It comes from a wide variety of sources – banks, credit card companies, mortgage and finance companies, credit unions, commercial lenders, and department stores, local merchants, landlords, insurance companies, utilities, hospitals, doctors, lawyers and other professionals. It is also gathered from the public records of municipal, state and federal agencies, land record offices and other government agencies.
How long does information stay on a credit report?
Only time will make negative information in your report go away. Most negative information -- late payments, accounts that your lender turned over to a collection agency, and court judgements against you -- must be erased after seven years. (There are certain exceptions to this seven year limit. Bankruptcy information, for example, may be reported for ten years).
On the good side, positive information remains on your report indefinitely.
What if my report shows incorrect information?
Under the Fair Credit Reporting Act, both the credit reporting agency and the organization that provided the information are required to correct inaccurate information on your report. If you believe your report is incorrect, find out exactly how to dispute the items in Credit and Your Rights.