Blog Post: Checked Your Credit Report Lately?

Most lenders today automatically contact one or more credit bureaus in the area where you live before approving your loan. Credit bureau reports show most (if not all) of your credit transactions for at least the last 7 years. If there are any glitches in your loan repayment record, it's likely these problems will show up in your report. Sometimes something even worse happens - someone has accidentally put the wrong information in your credit report or your personal data has been stolen and is being used to borrow money in your name.

Most financial experts recommend that, periodically, you request a copy of your credit report. This is especially the case if you are planning to purchase a major item on credit, such as a new home or an automobile. Then, too, if there are errors in your report you want them corrected so you can qualify for the best loan rate available.

How can you find out what's in your credit report? One easy way is to contact the three leading credit bureaus in the U.S.: Equifax (www.equifax.com), Experian (www.experian.com) or Transunion (www.transunion.com)

There is usually a small fee to request a copy of your report unless you have been denied a loan or a job based on information in the report. You also are eligible for a free copy if you are on welfare, unemployed but planning to seek a job, or because someone has fraudulently manipulated your credit report. In these latter cases you are eligible to receive a free report every 12 months to verify its accuracy.

If you find an error in your report, you have the right to request in writing that the credit bureau investigate and respond (normally within 30 days). If your credit report appears to be correct but there is financially damaging information in it, you also have the right to insert a brief explanation (normally limited to 100 words). For example, maybe you were ill and couldn't work for a time. A summary of your explanation must be made available to those asking for your report.

If you believe you have been treated unfairly by a credit bureau contact the Federal Consumer Response Center of the Federal Trade Commission (www.ftc.gov).

What red flags do lenders look for in a credit report? Among the troublesome areas are: (a) excessive debts that eat up too much current income; (b) late payments; (c) past debts "charged off" by a lender as uncollectible or turned over to a collection agency; (e) inquiries creditors may have made recently about you; and (f) whether you have filed for bankruptcy or have had liens placed against your assets. Stay informed about your credit report. You can head off many credit problems before they happen.