Credit Reports | Rosewood Holdings

This article will provide you with a detailed overview of what exactly a Credit Report is, and why it's so important. At the bottom of this article is a link to a website that gives you the capability to pull your own credit report for free.

So just what is a credit report? A credit report is a detailed account of the credit, employment and residence history of an individual. A credit report will generally list any judgments, tax liens, bankruptcies or similar matters of public record entered against the individual. They are commonly used by a prospective lender to help determine creditworthiness. By looking at one's credit report, you can get a pretty good idea of how that person has paid his or her bills (on-time or delinquent), if they've been sued, and even if they've been arrested for some sort of offfense.

Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.

A law was passed just a few years back (the Fair Credit Reporting Act) requiring each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – to provide you with a free copy of your credit report, at your request, once every 12 months. These three nationwide consumer reporting companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report.

To order, you can visit AnnualCreditReport.com by clicking on the banner just below. AnnualCreditReport.com is a central location that allows you to pull your free credit report from any of the three reporting agencies. You may also call 1-877-322-8228, or complete a form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The form can be printed from this website: www.ftc.gov/credit. Do not contact the three nationwide consumer reporting companies individually. They are providing free annual credit reports only through the outlets I just provided.

You may order your reports from each of the three nationwide consumer reporting companies at the same time, or you can order your report from each of the companies one at a time. The law allows you to order one free copy of your report from each of these consumer reporting companies every 12 months.

Only one website is currently authorized to fill orders for the free annual credit report you are entitled to under law, www.annualcreditreport.com (see above banner). Other websites and television advertising is prevalent and claim to offer “free credit reports,” “free credit scores,” or “free credit monitoring”. It's important to note that these are not part of the legally mandated free annual credit report program. In some cases, the “free” product comes with strings attached. For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period. If you don’t cancel during the trial period, you may be unknowingly agreeing to let the company start charging fees to your credit card. I won't give you the name, but I'm sure you've seen or heard one of these "imposters". Their commercials liberally use terms like “free report” in their names.

What information do you need to provide to get your free annual credit report? You need to provide your name, address, Social Security number, and date of birth. You may also be asked for some information that only you would know, like the amount of a monthly mortgage or loan payment. Each reporting agency may ask you for different information because the information each has in your file may come from different sources.

Why would you even want a copy of your credit report? Your report has information that affects whether you can get a loan. It's good to have a recent copy of your report to make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, appliances, electronics, or even apply for a job. It is not uncommon to find information in error on your report. Inaccurate information could affect your ability to make a purchase, obtain credit, or obtain a job.

If you find errors on your credit report, contact the consumer reporting company and the information provider (that is, the person, company, or organization that provides information about you to a consumer reporting company). Tell the consumer reporting company, in writing, what information you think is inaccurate. Consumer reporting companies must investigate the items in question – usually within 30 days – unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the consumer reporting company, it must investigate, review the relevant information, and report the results back to the consumer reporting company. If the information provider finds the disputed information is inaccurate, it must notify all three nationwide consumer reporting companies so they can correct the information in your file.

When the investigation is complete, the consumer reporting company must give you the written results and a free copy of your report if the dispute results in a change. (This free report does not count as your annual free report. If an item is changed or deleted, the consumer reporting company cannot put the disputed information back in your file unless the information provider verifies that it is accurate and complete. The consumer reporting company also must send you written notice that includes the name, address, and phone number of the information provider.

Tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if you are correct – that is, if the information is found to be inaccurate – the information provider may not report it again.

It's important to also understand your rights to obtain a free credit report. Under federal law, you’re entitled to a free report if a company takes adverse action against you such as denying your application for credit, insurance, or employment. You have 60 days to ask for your report should this occur. You’re also entitled to one free report a year if:

- you’re unemployed and plan to look for a job within 60 days;

- you’re on welfare;

- your report is inaccurate because of fraud, including identity theft.

Otherwise, a consumer reporting company may charge you up to $9.50 for another copy of your report within a 12-month period.

How long does negative information remain on your report? A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. There is no time limit on reporting information about criminal convictions; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you’ve applied for more than $150,000 worth of credit or life insurance. Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.

CREDIT REPORTS