Credit reporting basics
It All Starts With The Law
Responsibilities Of The Credit Bureaus
The Fair Credit Reporting Act (FCRA) provides consumers with the right to an accurate credit report, to dispute incorrect information, and receive a free copy of their credit report once per year, plus many other protections.
Responsibilities Of The Credit Bureaus
Responsibilities Of The Credit Bureaus
Consumer reporting agencies (credit bureaus) must have procedures in place to guarantee the accuracy of your report, they must investigate and correct errors when disputed, and must follow specific procedures if you are denied credit due to information in your report.
Responsibilities Of Users Of Consumer Reports
Creditors, potential employers, insurance companies, etc., must follow specific rules when using your credit history, such as only obtaining these reports with your permission and providing you with notice if there was adverse action against you for the information in the report.
What Makes Up Your Credit History
What Happens When My Credit Report Is Not Accurate
Your credit history is made up of payment history, types and number of accounts, credit utilization, length of credit history, credit inquiries, negative items such as bankruptcies, collections, etc.
Your Credit Score
What Happens When My Credit Report Is Not Accurate
What Happens When My Credit Report Is Not Accurate
Your credit score is made up of different parts, each having an influence on the score such as payment history (35%), available credit (30%), length of credit history (15%), different types of credit (10%), credit inquiries (10%).
What Happens When My Credit Report Is Not Accurate
What Happens When My Credit Report Is Not Accurate
What Happens When My Credit Report Is Not Accurate
When there are mistakes on your credit report like old and outdated names or addresses, incorrect missed payments, accounts that don't belong to you, collections or liens against you in error......these bring down your credit score and hurt your ability to own a home, get a car loan, secure low rates on insurance and much more.