Credit Tips

The Fair Credit Reporting Act controls how your credit history is kept, used and shared among lenders. It is designed to promote accuracy and ensure the privacy of the information used in credit reports. The three major Credit Reporting Agencies have credit files on millions of consumers nationwide.

Anyone who takes adverse action against you in response to a report supplied by a Credit Reporting Agency - such as denying your application for credit, insurance, or employment - must give you the name, address, and telephone number of the Credit Reporting Agency that provided the report.

You have a right to know what is in your credit report including medical information and, usually, the sources of the information. Make sure your report is accurate.

If you find inaccurate or incomplete information in your report

Contact both the Credit Reporting Agency and the company that provided the information to the Credit Reporting Agency.

Tell the Credit Reporting Agency in writing what information you believe is inaccurate. The information provider must investigate and report the results to the Credit Reporting Agency. If the information is incorrect, it must notify all nationwide Credit Reporting Agencies to also correct your file. If the reinvestigation does not solve your dispute with the company, ask that your statement regarding the dispute be included in your file. A notice of your dispute must be included anytime the Credit Reporting Agency reports the item.

Credit Report Access

Only people with a legitimate business need can get a copy of your report. An employer or a prospective employer can only get your credit report if you give written consent. Creditors, employers, or insurers cannot get a report that includes medical information without your approval.

Duration of Negative Information

A Credit Reporting Agency can report negative information for seven years, and bankruptcy information for ten years. Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.

When Your Debt Is out of Control

If you ever find yourself in a situation where you can't make a monthly payment, notify your credit card issuer and work out a modified payment plan that reduces your payments to a more manageable level. Be cautious about turning to a debt counseling company to solve your debt problems. Avoid paying such a firm in advance until you find out what the company can really do. Before you sign a contract, check out the organization with the U.S. Better Business Bureau or with your local consumer protection agency.