Credit information systems, or credit reporting agencies, use automated means to issue reports about a consumer's bill-paying habits, according to the Federal Trade Commission. The Fair Credit Reporting Act as federal law governs the agencies and requires them to only issue accurate financial data about citizens.
Types
Equifax, Experian and TransUnion are the predominant credit reporting agencies operating in the United States, according to the FTC.
Time Frames
Credit reports are available almost instantaneously to prospective lenders and employers who have an applicant's consent to review such information, according to the FTC. Keep in mind that while negative habits such as missing credit card payments do reflect on a credit report, federal law limits the reporting time frame to seven years from the date of the delinquency with only a few exceptions, according to Experian.
Exceptions
Bankruptcy courts, local civil courts and taxation agencies electronically issue reports of adverse financial situations to the credit reporting bureaus, according to Experian. Some court-related information, such as Chapter 7 bankruptcies and tax liens, will be reflected on the consumer's credit reports for 10 years from the date of the legal action.
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