Credit Rating Agency Rules

Credit rating companies are required to follow government regulations to safeguard consumers' credit histories. Among other things, they must provide credit reports to consumers upon request and maintain accurate credit files. However, it's up to consumers to monitor their credit reports to ensure their credit histories are accurately represented by rating agencies.

Credit Reports

Consumers have the right to know what's in their credit reports. The U.S. Fair Credit Reporting Act allows consumers to request one free credit report each year from the following national credit reporting companies: Equifax, Experian and TransUnion. However, the Experian website points out that consumers aren't entitled to receive free credit scores with their reports. Therefore, the three companies may charge a fee for including a credit score with a consumer's report. A credit report only shows your credit history, which includes the number of accounts you have and whether you've made late payments. A credit score is based on a statistical analysis of your credit history, which represents the likelihood that a person will repay a debt.

Credit Privacy

All credit rating companies are required to safeguard consumers' privacy by limiting access to their credit files. The companies may only provide people's credit data to entities that have a valid need for the information, which usually includes creditors, insurers, landlords and lenders. However, employers also are permitted to see your credit files if you're applying for a job and have granted your permission for a potential employer to do a credit check on you. Some employers who are seeking to reassign or promote their current employees also may do credit checks on workers with their permission.

Accurate Files

Credit reporting companies are prohibited from including outdated, negative information in consumers' reports, which could hamper their credit ratings and prevent them from getting approved for loans and credit cards. For example, information about late payments in a consumer's credit file generally must be removed after seven years. Bankruptcy information can remain in a person's file for 10 years.

Unsolicited Marketing

Credit reporting agencies can sell information about you to other companies that want to market their credit and insurance services to you. However, credit rating agencies must allow consumers to opt out of such unsolicited offers. Each of the national credit reporting agencies provides instructions on opting out of the offers on their websites. Yet you will only suspend the offers for five years if you opt out of them online. You have to mail in an opt-out form supplied online by the credit reporting companies if you want to be removed from their marketing lists permanently.