The three major credit reporting bureaus are Experian, Equifax and TransUnion. Each of these agencies keeps track of your credit history and has its own methods of determining your credit score. Credit reporting bureaus, also called credit reporting agencies (or "CRAs") give prospective lenders a picture of how well you manage your money and if you can be trusted to repay your debts.
What Bureaus Report
The three credit reporting agencies compile a list of certain types of records. Late payments, closed accounts, delinquent accounts that were handed over to a collection agency and those that were charged off by the creditor are noted in your history, reports Credit.com. But other types of information show up as well, such as bankruptcy, foreclosure and repossession records and tax liens and judgments (such as for child support or a small claims suit). The records the three credit reporting bureaus may put in your credit history often vary, e.g. an old debt that shows up in your Experian report may not be on your Equifax report.
Fair Credit Reporting Act
The Fair Credit Reporting Act, implemented in 1971, gave consumers the right to ensure that the information in their credit history is accurate. If an error is noted on a report, such as an expired record or an account that wasn't opened by the consumer, the FCRA allows the consumer to dispute the negative information in his records. The FCRA also establishes a procedure and time line under which the bureau must investigate and get back to the consumer in writing. The FCRA stipulates that all inaccurate negative information must be removed from the consumer's credit report.
Accurate Negative Information
However, just as the FCRA can act on behalf of the consumer, it also serves to protect prospective lenders from high-risk debtors. The three credit reporting bureaus cannot remove any item that's accurate, such as a bankruptcy record, even if it blemishes the consumer's credit history. According to the Federal Trade Commission, most negative records stay on the consumer's credit report for seven years. Bankruptcy and certain other types of records may remain for up to ten years. Credit repair clinics that assert they can erase any negative information from your credit report are scams, states the FTC.
Who Gets Your Credit Report
The three credit reporting bureaus by law cannot give your report to anyone unless it is for a permissible purpose. If you apply for a loan or credit card, seek a job or try to rent an apartment, the prospective lender, employer or landlord is permitted to access your credit report even without your written permission. Under the FCRA, you're entitled to one free credit report each year from the three major reporting bureaus and more frequently if a company takes adverse action against you (such as turning you down for a loan or passing you over for a job based on information in your credit history). If you're not working and plan to look for a job in 60 days, are on welfare or if your credit report is erroneous because of identity theft, you may also receive a free annual credit report.
Your Free Credit Report
You can access your free annual credit report from each of the three credit reporting bureaus at AnnualCreditReport.com, the online portal maintained by the bureaus, or by calling (877) 322-8228. You can also fill out the Annual Credit Report Request Form on the website and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Georgia 30348-5281.
Be careful when accessing your credit reports through any other website. As recently as 2003, the FTC was warning consumers of online con artists who try to get consumers' personal information so they can market it to identity thieves (see Resources). Other sites may indeed offer legitimate credit reports from the three bureaus but may try to hook you in with a free trial period, after which you are charged a fee.
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