Credit Bureaus
There are three major credit reporting agencies. They are in the business
of collecting and distributing credit histories on all Americans. If you're
an average American, it is very likely that these three credit reporting
agencies keep your credit history. They are competitors, which means that
each company has a different version of your information. This means that
it is necessary to obtain reports from all three companies, and this way,
you can be sure that none of them has erroneous information in their files.
A credit reporting agency will supply the on-line credit report with
your credit history and personal information. Credit reporting agencies
operate on a profit basis and charge a fee whenever your credit information
is sent out. This occurs whenever you complete a credit application for
a loan, mortgage or major purchase.
The largest of the credit reporting agencies or credit bureaus are: Equifax,
Trans Union and Experian.
There are many other credit reporting agencies, such as: check acceptance
and verification credit bureaus like Chexsystems, Certegy and Tele-track.
Some others include tenant screening agencies and the MIB. All must comply
with the law. When they don't, a consumer can enforce their rights.
- One of the most important laws protecting your identity and credit
information is the Fair Credit Reporting Act. Its purpose is to promote
the accuracy, fairness, and privacy of the information collected and maintained
by credit reporting agencies, the FCRA gives you specific rights:
- You must be told if your information is used against you. If you
are denied credit, employment, or insurance because of information in
your report, the denying party must alert you and provide you with the
name, address, and phone number of the credit reporting agency used
to support the denial.
- Upon requesting a credit report,
a credit reporting agency must give you the information in your file
and a list of everyone who has requested it within a certain time period.
There is no charge if you have been denied credit, employment, or insurance
because of items in your file (if you make a request within 60 days).
- A credit reporting agency must investigate items that you report
as inaccurate. You will receive a full copy of the investigation report.
If the dispute is not settled to your satisfaction, you may add a statement
to your report.
- Inaccurate information must be corrected or deleted. Credit reporting
agencies are required to remove or correct inaccurate or unverified
information. They are not required to remove accurate data unless it
is outdated.
- Whenever you apply for a loan, a mortgage or a major purchase this
information is submitted to the reporting agencies. If you used a different
address then the reporting agencies would record that as if you have
moved. Any inaccurate or misinformation must be reported to the credit
reporting agencies so that your credit report can then be adjusted to
reflect these changes.
Equifax, Experian and Trans Union are established in Alabama, Alaska,
Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii,
Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland,
Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota,
Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South
Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington,
West Virginia, Wisconsin and Wyoming. Beyond having on-line access you
can also visit your local office.
Credit reporting agencies provide an important service. They are required
to maintain a standard that is very high and this can be a source of assurance
for the consumer. The consumer can rely, with confidence, on the efficient
way that their credit records are being dealt with by the credit reporting
agencies.
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