Although it may annoy you but lenders and banks keep a record of many details about you, and this is called a credit report. It is legal for them to do so and in return, you have the right to check this file.
It is important that you inquire regularly about your credit report and your credit score, particularly when you plan a big financial change, for instance, before applying for a loan or a mortgage, you should always take time and review your credit report. This allows you not only to plan your moves accurately, but also to dispute any mistakes that might occur in the report.
What is a credit report?
A credit report is an accurate record of your financial activities, which includes all the accounts you have, the credits you may have taken so far, any late payments, and the actions started against you for financial reasons. This report is also used to determine your credit rating which is a number indicating your financial risks.
Information maintained in a credit report
The information typically included in a credit report may have the following:
1. Personal identification data
- Your name
- Social security number
- Address (current and previous addresses)
- Employer (also current and previous)
- Birth date
2. Credit information
- Your accounts
- Loans
- Repayment records for the past two years, from all the banks, lenders, retailers, card issuers, other credit companies
3. Public record information
- Bankruptcy, if you’ve had any
- Monetary judgments
- Tax liens.
4. List of recent inquiries
- Names of those who obtained your credit report in the past year
Who can access my credit report?
Anybody who can prove a legitimate business interest, creditors, insurers, employers and governmental agencies may get access to your credit report. This list is kept for one year, while the credit history information is kept for seven years, and, if you file for bankruptcy, that sticks for ten years.
Reporting Agency
If you wish to see your credit report, you can check with the respective reporting agency. A reporting agency is a company that maintains and updates the database, and sells the reports to those who are interested. There are many such agencies working, especially these three major, long-established ones: Equifax, Trans Union and Experian (formerly TRW). These are the companies you need to contact when you want to see your credit report – online, at http://www.equifax.com, http://www.transunion.com and http://www.experian.com, or offline, by calling them or writing to them.
You will be required to provide your personal info (name, address, social security number, etc) when you ask for your credit report. They may also charge you a small fee.
Fee to get credit report
If you wish to get your report from Equifax, the 3-in-1 credit report, meaning a complete credit history from all three credit reporting agencies, is $29.95 or $39.95 for the credit report with the credit score included.
At Trans Union, the complete 3-in-1 credit report is $29.95, but this is the online version, with one free credit score. If you want all three credit scores, you’ll need to pay an additional $9.95.
From Experian, the complete credit reports from the three credit bureaus costs $34.95, and includes a Free Experian credit score.
It is important to view results from all three major credit bureaus, as their results may not by the same. This is because they don’t share information among them, and lenders may report to one or another of these bureaus, so results may not always match.
Also, remember that according to The Fair Credit Reporting Act each consumer is entitled to one free disclosure every 12 months. Also, you can avoid these fees if you request to see your credit report within 60 days of having been denied credit or insurance because of the report. Also, you don’t have to pay if you’re on welfare, you’re unemployed and intend to look for a job within 60 days or your report contains mistakes due to fraud.
