The Fair Credit Reporting Act and the Fair and the Accurate Credit Transactions Act together regulate credit reporting agencies and ensure a consumer's access to his credit report. Credit reports collect information about financial transactions that you complete and your payment history with various lenders. This information is used by banks and other organizations to determine if they want to do business with you and the rates that they should charge.
Free Credit Report
The law allows you to receive a free credit report if you have recently been denied a loan or other service due to information in the report. The law also entitles you to one free copy of your credit report each year from each of the three major credit reporting agencies. Take advantage of this free report; a periodic review of your credit record may turn up errors or other concerns, including identity theft, and allow you to deal with problems before they become more serious.
What You Need
You will need to provide your name and Social Security number, as well as your date of birth to apply for your credit report. If you have moved recently, the credit reporting agency may request your previous address for verification. If you access the report through the annual credit report website, the site may request you to answer some security questions based on information in your credit report that only you would know. For example, it may ask you what company is financing your first home mortgage and give you a list of possibilities to choose from. When accessing the report online, you will have immediate access to the information. If you call or write, it will take 15 days or longer.
Correcting Errors
Review your credit report carefully when you receive it. Look for any errors, such as reported late payments that were not late or accounts that do not belong to you. If you find errors, take steps to correct them. Write to the credit reporting agency, or use the online process available when viewing the report to ask the agency to review the information for accuracy, explaining why you believe it is inaccurate. Within 30 days, the agency must either confirm that the information is correct or remove it from your report. If the agency believes the information is accurate, you can contact the original creditor to have it review the account.
Credit Scores
Credit reporting agencies use the information in your credit reports to calculate a credit score. This is a three-digit number that reflects the risk that you will not repay your loans on time. The higher the number, the better risk you present. The law requires credit reporting agencies to make their version of the credit score available to you, but not for free. The credit reporting agency may charge a reasonable fee for the score.
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