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Credit Report Facts

Credit Report Facts

What are my rights?

The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies (such as agencies that sell information about check writing histories, medical records, and rental history records). Here is a summary of your major rights under the FCRA:

  • You must be told if information in your file has been used against you.
  • You have a right to know what is in your file.
  • You have the right to ask for a credit score.
  • You have a right to dispute incomplete or inaccurate information.
  • Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information.
  • Consumer reporting agencies may not report outdated negative information.
  • Access to your file is limited.
  • You must give your consent for reports to be provided to employers.
  • You may limit "pre-screened" offers for credit and insurance you get based on information in your credit report.
  • You may seek damages for violators.
  • Identity theft victims and active duty military personnel have additional rights.

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Smart Credit Strategies

  • Charge small amounts on each of your credit cards at least once a month to avoid having credit lines reduced or closed out.
  • Enroll in an automatic-payment program to avoid late fees. (Timely payment is 35 percent of your FICO score)
  • Limit credit card use to less than 25 percent of your available credit for each card. (A lower utilization rate is 30 percent of FICO score)
  • Don't cancel a credit card you don't use. Length of your credit history is important (15 percent of your FICO score).
  • Refuse to open new credit cards despite promotions (10 percent of your FICO score is affected by credit inquiries).
  • Diversify your credit to include auto, mortgage, home equity, college, and installment loans. (A credit mix is 10 percent of your FICO score.)
  • Prudent use of credit cards is vital to your credit reputation. Don't abandon them, but use them wisely.

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Source: Federal Trade Commission and http://www.CSMonitor.com/

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