Can my employer get my credit report?
An employer can get a copy of your credit report, but only if you say it’s okay. Without your consent, a CRA is not allowed to provide any information about you to an employer or a prospective employer. If you do not want a prospective employer to obtain a copy of your credit report, you have to be careful not to sign a document during the application process that gives them that right. There is usually a portion in this document that legally gives consent to the prospective employer to obtain any information they want about you when they are making their decision. Employers will get your consent in writing (usually just your signature) and then they will obtain a copy of your credit report for their review. They are usually looking to see how stable your employment and financial history is. If it’s unstable, you could be seen as a risk to the company and therefore they will not hire you. Your credit history might also reveal any convictions you have had.
Can creditors, employers, or insurers get a report that contains medical information about me?
Creditors, employers and insurers cannot get a report that contains medical information about you without your approval. This information is confidential and you must give consent before it can be obtained by anyone other than you. Creditors, employers and insurers might ask you to sign a document giving them the right to this information, and that is why it’s so important that you always read everything you sign. If you are worried about anyone obtaining this information, carefully go over every document you sign to see if they are asking for the right to get a report that contains medical information about you.
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Is there a charge for my credit report?
Depending on your situation, you may or may not have to pay to view your credit report. If you have applied for credit, insurance or employment and been denied, you are able to request a free copy of your credit report within 60 days. When you receive the notice in the mail that you have been declined for credit, it will also provide you will all of the information (name, address and phone number) for the CRA that you can request the free report from. There are also a few other ways that you can receive a credit report free of charge. The first one is easy- you are entitled to one free credit report every year. Next, if you’re on welfare you can receive a free copy and if you’re unemployed and plan to look for a job within 60 days, you can receive one too. Lastly, if you believe that there is inaccurate information listed in your report because of fraud, you can get a copy of your credit report free of charge. If you do not fall into one of these categories, chances are that you will have to pay for your credit report.
What can I do if the credit reporting agency or information provider won’t correct the information I dispute?
You have rights if the credit reporting agency (CRA) or information provider won’t correct the information you dispute. If a reinvestigation does not resolve your dispute, you can request that the CRA include your statement in your file and all future reports. You can also ask the CRA to provide your statement to anyone who requested a copy of your report in the recent past. There is a fee for this service in most situations, but it will show anyone looking at your credit report that the information has been disputed and not yet resolved. This could potentially help you if a lender was looking at that incorrect information and planning on declining you because of it. Taking the time now to include a statement in your file could help you get the credit you want in the future. Once you have told the information provider that you have disputed information in your file, a notice of your dispute must be included anytime the information provider reports that item back to the CRA.
How can my credit score affect the interest rate I receive?
If you have a low FICO score, you have a right to be worried about the next interest rate you are offered on a loan. The difference between having a low FICO score and a high one are great. To put it simply, lenders will view you as a risk if you have a low FICO score because it tells them that you have not been financially responsible in the past. As a result, you could receive a higher interest rate from a lender because your FICO score is so low. When a lender is determining the price of a loan, they will look at your FICO score carefully. If it is determined that you have not had a reliable past record of paying your bills on time, the interest rate you are offered will be high or worse yet, you might be turned down for the loan altogether. You also will want to make sure that your FICO score is correct by obtaining a copy of your credit report. The Fair Credit Reporting Act protects consumers from unfair FICO scores, but you will want to review your credit report fairly regularly to look for any discrepancies on your own.
What can I do about inaccurate or incomplete information?
There are steps you can take to remove inaccurate or incomplete information from your credit report. You are protected by the law when this occurs and the credit reporting agency (CRA) and the information provider must correct any false information that is found in your report. To make sure all of your rights are being protected, you will want to contact both the CRA and the information provider.
Begin by writing the CRA - either by hand or email - and let them know what information you feel is incorrect in your credit report. Credit reporting agencies must investigate your claim unless it is deemed trivial. They will usually investigate within thirty days, but depending on how complicated the misinformation is, it could take longer. They will also forward on any relevant information you have provided about your dispute to the information provider. Once the information provider is notified of a dispute, they will investigate and review the information given to them by the CRA. If the information is found to be inaccurate, they are required to notify all CRA’s so they can correct this information immediately.
Once the dispute is closed, the CRA will give you written results and a free copy of your report if a change has been made.
What should I know about “investigative consumer reports”?
“Investigative consumer reports” are in-depth reports that detail interviews with your neighbors or acquaintances about your lifestyle, character and reputation. If you have applied for insurance or employment, an “investigative consumer report” could be issued on you. You will be told if someone issues this type of report on you through the mail. You will receive a notice that states your rights to request information about the report from the company that ordered it. Keep in mind that your application can be rejected and in this case, the CRA may provide you with additional information. If this occurs, the CRA is not legally required to tell you the source of the information.
Are there other laws I should know about?
There are some other laws you should know about regarding your credit report. Becoming knowledgeable about your credit report and your rights is the best defense you have when it comes to your credit history. If you have applied for credit and have been turned down, the Equal Credit Opportunity Act requires that creditors tell you why - but only if you ask. If you have “no credit file,” “delinquent obligations” or anything else, the creditor must tell you this in writing. Finding out this information is beneficial to you because it lets you know the areas you need to improve upon and it might even alert you to false information in your report. Having false information in your credit report can be detrimental to your credit score and it can also be the reason you are turned down for a job or credit. The Equal Credit Opportunity Act also requires creditors to consider additional information you might supply about your credit history. Before you talk to the CRA, you might want to find out why your application was denied in the first place.
Do I have a right to know what’s in my credit report?
Knowing what is in your credit report is essential to your financial success. If you just assume that the information reported in your file is correct, you could be making a big mistake. You definitely do have a right to know what’s in your credit report, but only if you ask. If you never request a copy of your report, you won’t be offered one. The Credit Reporting Agency (CRA) must tell you everything that is in your report, including medical information and where the information came from. You can request that a copy of your report be mailed to you or you can simply view one online. Your credit report will tell you your score, anyone that has requested your report within the past year, what your payment history looks like and any delinquent or collection accounts that you have. Learning how to read your credit report is important as well. Once you have obtained a copy of your credit report, you will want to make sure all of the information in it is accurate because any false information could be making your credit score go down.
Do I have the right to sue for damages?
If a CRA, a user or a provider of CRA data has been in violation of the FCRA, you are able to sue for damages. This can sometimes be a lengthy process and you will need to hire a lawyer that can represent you in state or federal court. Finding a lawyer that knows the FCRA rules and regulations is your best bet for winning in a case like this. If you were to win the case, the defendant will pay damages to reimburse you for your attorney fees as ordered by the court.
Your credit score is used for many things - some of which you may realize and some you may not. Every time you apply for credit, try to purchase a house or even rent an apartment, your credit report is pulled and your credit score is looked at. If your credit score is low, chances are that you were turned down for whatever it is that you had applied for and were given the option of a co-signer. This is because your credit score is calculated by your past payment history, the amount of outstanding credit you have and the amount of available credit you have. Your credit score essentially “ranks” you as a credit risk or a reliable consumer. Lenders will always look at your credit score to determine if you are a risk to them or not. They will also take a look at your current income and your employment history to give them a good idea of your stability. If you have a record of always paying your bills on time, this will count in your favor with a lender. Generally, if you have always paid your bills on time in the past, a lender will be led to believe that you will do the same in the future.
What is the Fair Credit Reporting Act?
The Fair Credit Reporting Act was put in place to protect consumers from unfair credit reporting. It began in 1970 and it has regulated the way credit histories have been reported and recorded ever since. The FCRA mandates that credit reporting bureaus be fair when they are gathering and reporting in a person’s credit file. The FCRA also believes that every person has a right to know what is in their credit file and as a result, all credit bureaus are available for viewing by their rightful owner. The FCRA was formed to keep credit information accurate and fair. But since there are so many people that the FCRA must keep track of- mistakes are bound to be made by the credit bureaus that aren’t caught at that time. If inaccurate information is found on a report, that person has the right to contest it. They must go through a procedure to get the information reviewed and if it is found to be incorrect, it will be fixed immediately. If that information is not corrected within a reasonable amount of time, the credit bureau in question can be deemed in violation of the Act.
You’ve probably heard of your FICO score at some point, but not been sure exactly what it is or how it affects you. The reason why it’s so important that you understand your FICO score is because it can tell you why you were approved or declined for credit. The FICO credit score was developed by Fair Isaac and Company and is calculated by using credit bureau information. The FICO score tells a creditor how likely it is that you will pay your bills on time. The range for your FICO score is 350-900 with 900 being the best. Creditors look at someone with a low FICO score and see them as a high-risk. To keep your FICO score high, paying your bills on time every month is a must. Being late on your bills continuously will bring down your FICO score and show creditors that you cannot be trusted. If this happens, you will find that it is much harder for you to get credit than it would have been otherwise. It might take some time for you to improve your FICO score, but it will eventually rise if you pay your bills on time.
Can anyone get a copy of my report?
Not just anyone can obtain a copy of your credit report unless they have a legitimate business need, as recognized by the FCRA. If you have gone on a job interview in the past, chances are that the prospective employer obtained a copy of your credit report. The same goes for anytime that you have applied for a credit card, a loan or insurance or even when you tried to get approved for an apartment. The reason these companies have most likely obtained a copy of your credit report is because they use it to assist themselves in making their decision. Credit approval is based largely on the information found in your credit report and that is why businesses will obtain a copy of your credit report before approving or declining your request. Individuals without a business need cannot obtain a copy of your credit report legally. You are able to obtain a copy of your credit report at any time, but a fee may be charged. Legally, you are allowed one free copy of your credit report per year.
