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The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies –
Equifax, Experian, and TransUnion – to provide you with a free copy of your credit report, at your
request, once every 12 months. The FCRA promotes the accuracy and privacy of information in the
files of the nation’s consumer reporting companies. The Federal Trade Commission (FTC), the nation’s
consumer protection agency, enforces the FCRA with respect to consumer reporting companies.
A credit report includes information on where you live, how you pay your bills, and whether you’ve
been sued, arrested, or filed for bankruptcy. Nationwide consumer reporting companies sell the
information in your report to creditors, insurers, employers, and other businesses that use it to
evaluate your applications for credit, insurance, employment, or renting a home.
You may order your reports from each of the three nationwide consumer reporting companies at the
same time, or you can order your report from each of the companies one at a time. The law allows you
to order one free copy of your report from each of the nationwide consumer reporting companies every
12 months.
Q: Are there any other situations where I might be eligible for a free report?
A:Under federal law, you’re entitled to a free report if a company takes adverse action against you
such as denying your application for credit, insurance, or employment and you ask for your report
within 60 days of receiving notice of the action. The notice will give you the name, address, and
phone number of the consumer reporting company. You’re also entitled to one free report a year if
you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report
is inaccurate because of fraud, including identity theft. Otherwise, a consumer reporting company
may charge you up to $9.50 for another copy of your report within a 12-month period.
Q: Why do I want a copy of my credit report?
A: Your credit report has information that affects whether you can get a loan – and how much you
will have to pay to borrow money. You want a copy of your credit report to:
• Make sure the information is accurate, complete, and up-to-date before you apply for a loan
for a major purchase like a house or car, buy insurance, or apply for a job.
• Help guard against identity theft. That’s when someone uses your personal information – like
your name, your Social Security number, or your credit card number – to commit fraud. Identity
thieves may use your information to open a new credit card account in your name. Then, when they
don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate
information like that could affect your ability to get credit, insurance, or even a job.
Q: What if I find errors – either inaccuracies or incomplete information – in my credit report?
A: Under the FCRA, both the consumer reporting company and the information provider (that is, the
person, company, or organization that provides information about you to a consumer reporting
company) are responsible for correcting inaccurate or incomplete information in your report. To take
full advantage of your rights under this law, contact the consumer reporting company and the
information provider.
1. Tell the consumer reporting company, in writing, what information you think is inaccurate.
Consumer reporting companies must investigate the items in question – usually within 30 days –
unless they consider your dispute frivolous. They also must forward all the relevant data you
provide about the inaccuracy to the organization that provided the information. After the
information provider receives notice of a dispute from the consumer reporting company, it must
investigate, review the relevant information, and report the results back to the consumer reporting
company. If the information provider finds the disputed information is inaccurate, it must notify
all three nationwide consumer reporting companies so they can correct the information in your file.
When the investigation is complete, the consumer reporting company must give you the written results
and a free copy of your report if the dispute results in a change. (This free report does not count
as your annual free report under the FACT Act.) If an item is changed or deleted, the consumer
reporting company cannot put the disputed information back in your file unless the information
provider verifies that it is accurate and complete. The consumer reporting company also must send
you written notice that includes the name, address, and phone number of the information provider.
2. Tell the creditor or other information provider in writing that you dispute an item. Many
providers specify an address for disputes. If the provider reports the item to a consumer reporting
company, it must include a notice of your dispute. And if you are correct – that is, if the
information is found to be inaccurate – the information provider may not report it again.
Q: What can I do if the consumer reporting company or information provider won’t correct the
information I dispute?
A: If an investigation doesn’t resolve your dispute with the consumer reporting company, you can ask
that a statement of the dispute be included in your file and in future reports. You also can ask the
consumer reporting company to provide your statement to anyone who received a copy of your report in
the recent past. You can expect to pay a fee for this service.
If you tell the information provider that you dispute an item, a notice of your dispute must be
included any time the information provider reports the item to a consumer reporting company.
Q: How long can a consumer reporting company report negative information?
A: A consumer reporting company can report most accurate negative information for seven years and
bankruptcy information for 10 years. There is no time limit on reporting information about criminal
convictions; information reported in response to your application for a job that pays more than
$75,000 a year; and information reported because you’ve applied for more than $150,000 worth of
credit or life insurance. 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.
Q: Can anyone else can get a copy of my credit report?
A: The FCRA specifies who can access your credit report. Creditors, insurers, employers, and other
businesses that use the information in your report to evaluate your applications for credit,
insurance, employment, or renting a home are among those that have a legal right to access your
report.
At www.defeatbadcredit.com it is our mission to help you repair your bad credit by removing bankruptcies, charge offs, judgments or other bad credit from your credit report. For more credit repair information and resources, simply go to www.defeatbadcredit.com
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