14 May
As any decent detective can tell you, a person’s credit report should always be included when performing a full background check. The credit report bureau’s are an excellent source of previous address information, social security number verification, and DOB confirmation. Most importantly, a credit history will prove an applicants financial responsibility, or confirm suspicion in that regard.
Once reserved for criminal investigations and top-secret security applications, pulling a credit report has become standard procedure for even the most mundane of occupations. With that in mind, it is vital that you regularly obtain a copy of your free credit report, preferably one from each of the major credit reporting bureau’s.
Review your report with the utmost care, and immediately challenge any errors that you may find. Each agency has a relatively simple challenge procedure to force a creditor to backup any negative credit information in your report in a timely fashion. Even seemingly small errors in your credit report can significantly damage your all-important FICO score, which is the benchmark used to judge your credit worthiness when applying for any type of loan. So pay close attention and be vigilant regarding your credit report’s contents.
For an additional copy of your report during the year, you can obtain one online or order one by mail. If you wish to obtain your credit report online, contact each reporting agency individually. There are also additional websites that offer combined reports from all three agencies.
Online credit reports are confidential, require a credit card, are accessible for a specified number of days, and are printable from the website. To order by mail, enclose a check or money order with your letter containing the above information and send your request to the address for the agency of your choice. You will need to contact the agency to determine the fee for your state. A report costs $9–$14, depending on the state in which you live.
Your credit report is actually a credit history. It is created by data about you from many different sources. Companies that have granted you credit make regular reports about your accounts to the three main CRAs: Equifax, Experian (formerly TRW), and TransUnion. If you are late in making payments, those to whom you owe money such as utilities, hospitals, landlords and others may report this information to the CRA. Your bank may inform the CRA if you overdraw your account or do not make credit card, auto loan, or mortgage payments on time. Your credit report may also contain information about delinquent child support payments.
One important reason to check your free credit report online is to learn your credit score. Keep in mind that you will usually have to pay to see your score (the bureaus are not required to provide those free!) If you want to see your credit scores for free, you can find various offers online that provide them as part of a package.
You have the right to know who has inquired about your credit file or has requested your report over the last six months. Reports you receive must also include the identity of all such inquiries. Inquiries related to pre-approved offers, as well as your own inquiries, are not available to credit grantors. However, they are included in credit reports that you order for yourself.
The FCRA allows CRAs to report records of convictions of crime. However, it is not the practice of any of the three main CRAs to report criminal convictions on credit reports. Such information may, however, be reported in connection with an employer background check, an application for automobile insurance, or an application to rent a house or apartment.
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