Frequently Asked Questions about Credit Report Reviews

What information should I have ready for my credit report review?

In order to help you more efficiently, you must have the following items with you during your consultation:

• A list of monthly bills with monthly amounts (rent/mortgage, utilities, food, etc.)
• Household Income verification, such as pay stubs, tax forms, etc.
• Your current valid photo ID
• A copy of your credit report dated with in the last 30 days from the date of your appointment with CCCS^®. Visit www.AnnualCreditReport.com to request your FREE credit report(s).

What is a credit report?

A credit report is an electronic file kept by a Credit Reporting Agency (CRA). CRAs keep files on everyone who has had credit activity of some kind. They sell this information to individuals and businesses. The three major CRAs are Experian, Equifax and TransUnion. Creditors subscribe to CRAs so that they can obtain credit activity information on people who have applied for credit or to offer credit to people who may qualify. Creditors input identifying and account history information on their customers. The handling of this information must be in accordance with the Fair Credit Reporting Act.

What information is in a credit report?

All of the information in the credit report is input as a result of something the consumer did, such as apply for credit or insurance, use credit, or request a credit report and from public records such as bankruptcies or judgments. The credit report contains information to help identify the consumer, such as name, address, employer, date of birth and social security number. It contains information about any bankruptcies or judgments entered against the consumer. It contains the history of each credit account in the consumer’s name, including joint accounts, co-signed accounts, and accounts on which the consumer is an authorized user. It also contains a list of all creditors who have obtained the credit history in the past year and any businesses who have obtained the credit report for employment purposes in the past two years.

Do I have to give permission for someone to obtain my credit report?

No. The law allows anyone with a permissible purpose to obtain your credit report. Prospective landlords, employers, lenders, insurers and others may obtain your credit report without your permission. However, most applications that consumers make to obtain an apartment, credit, insurance or employment contain a notice that a credit check will be done. In addition, it is permissible for a business to obtain your credit history to market credit or services to you. (Although these marketing inquiries are reported on the credit report that the consumer receives, they are not reported on the credit report that others receive because the consumer did not initiate the inquiry by applying for the credit or service.)

Do I have the right to know what’s in my credit report?

Yes, if you ask for it. You may obtain one free credit report from each CRA each year. You may also obtain a free credit report from the CRA that reported information that resulted in your being denied credit, insurance, employment, etc. The CRA must tell you everything that is in your report. You may purchase a credit report from a CRA at any time.

When should I get a copy of my credit report?

You should get a copy of each credit report once per year. You should also get your credit report before you apply for credit—especially for a mortgage, vehicle or other loan.

What is a credit score?

A credit score is a number from a low of 450 to a high of 850 that is based on many factors that determine whether a consumer is more or less likely to default on credit. The higher the credit score, the less risk of default. Each factor is given a certain amount of weight, and the total results in the credit score. There are 3 main credit-scoring systems. These systems were developed by the Fair Isaac Corporation, and are known as the Fair Isaac score (FICO), the Beacon score and the Empirica score. Each CRA uses a different score.

What factors determine the credit score?

Some factors that influence the credit score are credit experience (length of time consumer has used credit), account payment history, amount of UNUSED credit available, type of credit used, home ownership, amount of credit in use and number of inquiries.

How do I get my credit score?

The credit score is not part of the free credit report, and must be purchased from a CRA or from the Fair Isaac Corporation.

I got my credit report and there are some mistakes on it. What can I do?

Under the law, both the CRA and the business that provided the information to the CRA have responsibilities for correcting inaccurate information. The first step is to tell the CRA in writing what information is inaccurate. If you have the credit report, photocopy the page with the error, and underline it or highlight it. If a dispute form came with the credit report, use it to describe the error. If not, write a letter explaining why the information is inaccurate. If you have documentation, such as a paid receipt, include a copy with your dispute. The CRA has 30 days to investigate your dispute with the business that provided the information, unless they consider your dispute frivolous. Disputed information that cannot be verified must be deleted from your file. Any verified corrections must be made. The CRA must give you the written results of the investigation. If the business that provided the information to the CRA verifies that the information is correct, but you still dispute it, you should contact the business that provided the information. You can also have your file noted with your statement of dispute.