cutting
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Your credit report is often a key
determinant in whether you’ll get the
mortgage or car loan you’ve applied
for, the insurance (auto and homeowner’s) coverage you need, or the
job or apartment you want. It can also
help you spot and stop identity theft:
America’s fastest-growing crime.
Except in special cases, consumers have always had to pay to see
their credit reports. That changed
on September 1, 2005, when the Fair
Free Credit Reports:
It’s a Matter of FACTA
How do I get my free credit
reports?
You can order reports from www.annualcreditreport.com, a Web site run by the
three credit bureaus under the backing
of FACTA. You’ll need to provide your
name, address, Social Security number,
date of birth, and other personal information. Applying online should generate
a same-day response. If you prefer, you
can call (877-322-8228) or write (Annual Credit Report Request Service, PO
Box 105281, Atlanta, GA 30348-5281)
to get your reports. the Web site will tell
you how, but it will take about 15 days
before you receive reports requested by
telephone or mail.
and Accurate Credit Transactions Act
(FACTA) of 2003 completed its cross-
Can I order all three reports at
once?
country phase-in program. Now, all
U.S. consumers are entitled under
FACTA to one free copy of their credit
report annually from each of the three
major credit reporting bureaus:
Equifax, Experian, and TransUnion.
Here’s what you need to know to perform a check of your credit report.
Yes. Doing so allows you to compare
them. Or you can order them separately,
spread out over time to track activity in
your file. For example, you could order
one free credit report every four months
from each of the three credit reporting
agencies. (January—Experian report,
May—Equifax report, September—
TransUnion report). However you order
them, experts recommend you review
your reports a few months before applying for a mortgage or any major purchase that could trigger a credit check.
Just remember, once you order your
report, you can’t get another from the
College of Agricultural Sciences same credit bureau for 12 months unless you pay for it or meet special needs
(e.g., unemployed, denied credit, identity
fraud victim).
What will I see when I read my
reports?
Reports from the three bureaus may
differ in content and format. Generally,
however, each will include at least the
following sections:
l
Personal Information (name, birth
date, full or partial Social Security
number, current and past addresses,
employers, etc.)
l
Public Records (any bankruptcies,
arrests, foreclosures, tax liens, and
judgments against you)
l
Credit Account Information (name
and address of creditors, account
balances, and payment histories)
l
Inquiries (who has been looking at
your credit report, and why)
Agricultural Research and Cooperative Extension
Credit report sample
What if there are errors?
How can my credit report
protect me from identity theft?
A 2004 survey by the U.S. Public Interest Research Group found that nearly
80 percent of credit reports contain mistakes. Most are minor, but one in four
reports has serious errors—the kind that
can deny you consideration for a loan
or a job. If you find an error in a report,
contact the bureau that prepared it, in
writing, via certified mail. Unless your
complaint is deemed frivolous, the bureau will have 30 days to investigate it. If
the investigation results in your favor, the
error will be corrected and you’ll receive
an amended report. (For more on this
process, check with the Federal Trade
Commission at www.ftc.gov/bcp/conline/pubs/credit/crdtdis.htm.)
Identity theft is the unauthorized use
of your personal information to commit fraud. Such acts are often reflected
in your credit report. (Many suspicious
“inquiries” can be a clue.) If credit
report problems are a result of identity
theft, you can ask the three reporting
bureaus to put a fraud alert on your file.
This requires creditors to contact you
before opening new accounts or making
changes to existing ones. Initial alerts
last for 90 days; extended alerts continue for seven years.
Your credit report should present an
accurate accounting to those who use it
to make decisions about your financial
future. You can increase the accuracy
of your report by reviewing it at least
annually.
0ERCENT
Types of credit report errors and their frequency (U.S. PIRG Reports 2004).
100
90
80
70
60
50
Creditors may use your credit
score in making lending decisions.
Also known as a FICO® score, this
calculation is derived from data in
your credit report and is used to
predict how likely you are to pay
bills on time. Each credit bureau
calculates a FICO® score, but each
bureau may arrive at a different
number. Credit scores are not free
and they change as the information in your credit history changes.
Generally, the higher the score,
the easier it will be to get credit.
Like credit histories, credit scores
should be checked just before
making a major purchase.
“Free” reports that can
cost you
Many Web sites offer free credit
reports, only to charge you for
incidentals (such as a monthly
credit monitoring service) or
trick you into divulging personal
information. The one source of
truly free reports under FACTA is
the Annual Credit Report Request
Service and its Web site, www.
annualcreditreport.com. Although
the three credit reporting bureaus
are permitted to sell credit scores
from that Web site, purchasing a
credit score is not required for you
to get the free credit report.
Credit reporting bureaus
40
Equifax:
800-685-1111
(www.equifax.com)
30
20
Experian:
888-397-3742
(www.experian.com)
10
0
Credit scores
Serious
errors
Inaccurate
personal
information
Closed
accounts
shown as
open
Same loan
shown
twice
Major loans
not listed
Total mistakes
TransUnion:
800-916-8800
(www.transunion.com)
Prepared by Cathy Faulcon Bowen,
associate professor and extension
specialist, consumer issues programs,
Department of Agricultural and Extension Education.
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