Credit Report Bureaus

Under the Fair Credit Reporting Act (FCRA) of The Federal Trade Commission, credit reporting companies are required to provide consumers free copies of their credit report, once every twelve months. This is handled by three credit report bureaus – EquiFax, Experian and TransUnion. You may come across reporting bureaus other than these three but the FTC recommends that you request credit reports only from the three authorized bureaus.

Free credit reports can be ordered via www.annualcreditreport.com or through credit bureaus. The credit report lists information such as your current address, state of debts or finances, if you have been sued or arrested and also if you have ever filed for bankruptcy. The consumer reporting companies also sell credit reports to creditors, employers, and other business that use it to evaluate your applications for loan, mortgage or insurance. Employers can conduct background checks and look up your credit reports only with prior consent.

The FTC advises consumers to go to the credit report website via FTC’s website to avoid scams. Websites that claim to offer free credit reports or credit monitoring are not a part of the legal mandate. If you get an email or a phone call from anyone claiming to be from annualcreditreport.com, forward the information to FTC immediately.

At the time of credit report request, you must provide your name, address, social security number and date of birth. Credit bureaus may ask you to provide private information to ascertain your identity and protect you against identity theft.

Through annualcreditreport.com, you can access your credit report as soon as you fill in the required information but credit bureaus may take 15 days to send it via post. While the entitlement is set at one free credit report, you can also get another free report in the event a creditor or insurer denies your loan or insurance request.

Financial advisors suggest ordering credit reports from all the three credit reporting bureaus since all of them provide different information. The difference is because the bureaus get information from different sources.

Under the Reporting Act, the consumer or the information provider is responsible for correcting any inaccurate or incomplete information. Consumers have to contact the credit reporting bureau in writing with all the data that indicates the inaccuracy of information. Once the investigation is complete, the bureau should give this in writing and also provide a free copy of the credit report with changes. This report will not count as the free report you are entitled to.

Credit report bureaus cannot determine your eligibility for loans or mortgage. A good or bad credit reporting score is also dependent on individual creditor criteria. Every financial institution in America uses credit scores, whether it is a credit card provider or auto financers. Any delay in loan repayment or a debt will be reported for a minimum period of seven years.