For any information pertaining to your personal credit report, the federal Fair Credit Reporting Act promotes the accuracy and fairness in the files of the credit reporting agencies. You can contact any of the major credit bureaus and you have to be told if any information in your file has been used against you. Anyone who uses your personal credit report to reject your credit application must inform you with complete name, address and phone number of the agency that gave them the information.
You have a Right to your Personal Credit Report
You have the right to know what is in your personal credit report. You have a right to your file disclosure. You may request the information about you in the files of a credit bureau. You may be required to give complete information that may include your social security number. You will be given a full right to a free file disclosure if any person has taken action against you on account of the information in your personal credit report. It is also allowed if you are the victim of identity theft and if you have already initiated a fraud alert in your file. Free disclosure is allowed if your file has inaccurate information on account of a fraud. All consumers can get one free disclosure a year on request from each major credit bureau nationwide.
Credit Score on your Personal Credit Report
Credit score is a numerical summary of your credit-worthiness and that is based on information from the credit bureaus. You may request a credit score from the credit reporting agencies that compile scores or distribute the scores which are used in residential mortgage loans but you may have to pay for it. In some mortgage cases, you may receive free credit score from the mortgage lender.
The access to the credit score is limited. A credit bureau will offer information about your personal credit report only to people who have a valid reason for accessing. This is usually to go through a credit application with a creditor, employer or an insurer.
Correction of Inaccurate Information on your Personal Credit Report
Inaccurate or incomplete information has to be corrected within a period of one month. A credit bureau may report the information that it has verified to be accurate. This is mandated by the FCRA. In most of the cases, a credit bureau may not report or reflect negative information that is over seven years in age or the bankruptcies that are over ten years old.
A credit bureau cannot give out information about you to your employer without a written consent from you. If a credit bureau violates the Fair Credit Reporting Act stipulations, you may be able to seek damages from the violators by suing them in federal or state court. In some of the cases, you may have more rights under the state law.
A business bankruptcy will have an impact on your personal credit report if you are personally responsible for the debt in business. Your personal credit report will summarize the types of credit you are using including financing plans, credit cards and loans. It will also show if you have made your payments on time. You can build a good personal credit report history by making consistent payments on your credit cards and other loans on time.