 What is a Personal
Credit Report?
Upon establishing
credit with lending institutions or retail businesses,
most lenders will report your payment history information
to the credit bureau. The major credit bureaus are
Experian, Equifax and TransUnion. The credit bureaus
organize the personal credit information on you
and your credit history to produce credit reports.
The credit reports are available to your current
and prospective creditors, and employers as allowed
by law. The credit report's main purpose is to assist
a lender in deciding whether to grant you credit.
This generally occurs when you are applying for
car loans, credit cards, home mortgages, and rental
housing.
Personal Credit
Report Contents
-
Your
name and any variations of your name
-
Your
social security number
-
Your
date of birth
-
Current
and previous addresses
-
Current
and previous employers
-
Credit
accounts and history
-
Public
records (liens, bankruptcies, civil judgments,
etc.)
-
Inquiries
Where Do I Get
My Credit Report?
You can obtain a copy
of your credit report from the credit bureaus as
shown:
FTC Issues Final Rule on Free Annual Credit Reports
The Federal Trade Commission has issued its final rule regarding free annual credit reports under the Fair and Accurate Credit Transactions Act (FACTA) and the Fair Credit Reporting Act (FCRA). FACTA, which was enacted on December 4, 2003, amends the FCRA and requires, among other things, that the three nationwide consumer reporting agencies — Equifax, Experian and Trans Union — provide consumers, upon request, a free copy of their credit report once every 12 months.
When Should I Check
My Credit Report?
Your credit report
should be periodically reviewed for accuracy. It
is advisable to obtain your credit report in advance
of making a major purchase such as a vehicle or
home. At the time of marriage or divorce your credit
report should be reviewed during the transition.
Your credit report also should be reviewed in the
event of a death of a spouse.
What Are My Rights
Regarding My Credit?
The federal Fair Credit Reporting Act
(FCRA) is designed to promote accuracy, fairness and privacy of information
in the records of every "consumer reporting agency" (CRA).
CRAs are better known as credit bureaus. For more information on your
specific rights, visit www.ftc.gov
at the Federal Trade Commission's web site You may have additional
rights under state law. Contact your state or local consumer protection
agency or a state attorney general for more information on your rights
under state law.
Highlights of Your
Rights
-
Access
to your credit file is limited;
-
Your
consent is required for credit reports provided
to employers or reports that contain medical information;
-
You
have the right to a copy of your report;
-
You
must be told if information in your report has
been used against you;
-
You
can dispute inaccurate information with the CRA;
-
Inaccurate
information must be corrected or deleted by the
CRA;
-
You
can dispute inaccurate information with the source
of the information;
-
Outdated
information may not be reported;
-
You
may choose to exclude your name from CRA lists
for unsolicited credit and insurance offers;
-
You
may seek damages from violators.
How Is My Credit
Rated?
Using information
from your credit report and statistical models that
vary in the financial service industry, a credit
score is produced. Your credit score changes as
the information in your credit report changes. Typically,
the credit score is produced by the CRA when a lender
requests your credit report and the score then becomes
a part of your credit report. Individual lenders
may produce their own credit scores. Credit scores
assist lenders in assessing risk in a fair manner
because they are objective and consistent.
How Do I Protect
and Improve My Credit?
Paying your bills
on time is the single most important factor in maintaining
good credit. In addition, you will want to avoid
overextending yourself or applying for additional
credit that is not needed. Keep your debt low on
credit cards or other "revolving credit."
Pay off debt instead of moving it around. Owing
the same amount but having fewer open accounts may
lower your credit score.
How Do I Exclude
My Name from Unsolicited Offers?
To reduce solicitations for credit offers by mail, contact 1-888-5 OPT OUT (1-888-567-8688). You will be given a choice to opt out for five years or permanently. You may also visit www.optoutprescreen.com to make this choice electronically. There is generally a small fee to process this electronically, however it is free of charge by mail.
How Do I Minimize
My Risk for Identity Theft and Fraud?
The following are
tips to protect yourself and reduce your risk for
credit card fraud and identity theft:
-
Carry only the ID and cards that you need;
-
Sign
all new credit cards immediately;
-
Do
not make Internet purchases from unsecured web
sites;
-
Try
to memorize your passwords rather than writing
them down;
-
If
you expect a new credit card and it does not arrive
in a reasonable time, contact the issuer;
-
Have
your mail collected by someone you trust in your
absence;
-
Shred,
rather than throw away, all documents that contain
any personal information;
-
Destroy
all carbons;
-
Always
retain your receipts when you make a purchase;
-
Create
passwords that are not obvious;
-
Do
not confirm any information about yourself by
phone or by door-to door solicitors;
-
Treat
your credit cards like money - secure them safely;
-
Do
not print your social security number on your
checks;
-
Do
not give your credit card number over the telephone
unless you initiated the call;
-
If
you do not receive you credit card billing statement,
immediately notify the company.
By knowing your rights,
taking precautions and consistently reviewing your
credit report, you will be taking the correct steps
in the basics of cash management by protecting your
credit. By educating yourself and acting responsibly
you have discovered the keys to maintaining good
credit. Maintaining good credit is a basic step
to financial success! For more information regarding this topic or any other
tax-related issue, please call The Henssler Financial Group Tax & Accounting Division at 770-428-4025.
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