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Q.   Are "credit bureaus" a part of government?

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Q.   Is it illegal or immoral to have your credit profile cleared?

A.    No. It is not illegal or immoral to eliminate mistakes on your credit report.  In fact the federal government, under the 1970 Fair Credit Reporting Act, Section 168 le, protects your right to do so.

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Q.   How does the credit reporting system work? 

A.    Today, the credit reporting system is literally millions of computer files about individual consumers which are maintained by the three credit reporting companies.  The files contain personal information about you - how much you owe, how you have paid your debts, your employer, your social security number, public records, etc.

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Q.   How does information about me get into my credit report?

A.    When you agree to accept credit from a bank, most retail stores, etc., or fill out an employment application - if a credit report is used as a background check - you give the creditor the right to provide information to any credit reporting company.  Additional information about you comes from public records, such as court records, debt collection companies, and even the utility companies.

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Q.   How do the credit companies work? 

A.    The banks, retail stores, utility companies, etc. report your payment record to the credit reporting companies each month.  The credit reporting companies then give that information to a second tier of regional reporting companies who sell it to retailers, banks - anyone who legitimately requests information about you.

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Q.   Why should I care what is in my credit file?

A.    You'd better care.  It is your credit report that creditors use to determine if they will extend credit to you.  If you have inaccurate information on your report, you may be turned down for the loan you need or pay unnecessary high interest rates.

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Q. Why do the credit bureaus have separate reports for husband and wife?

A.    The credit bureaus collect information based on individual social security numbers.  Only by checking both the wife's and husband's credit reports can we ensure accuracy.

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Q.   Who can request information about my credit file?

A.    Under the Fair Credit Reporting Act, a credit reporting company may only disclose your credit report if someone is:

1. Granting credit, reviewing your account, or collecting on your account.

2. Reviewing you for employment purposes.

3. Reviewing your application for insurance.

4. Reviewing your eligibility for a license or government-related benefits.

5. Providing information for a business transaction, such as renting an apartment.

6. A court order.

7. An IRS subpoena.

8. Someone to whom you have given written permission.

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Q.   How often are mistakes entered into my credit file?

Q.   Who will remove items from my credit report?

Q.   How can I add positive data to my credit report?

Q.   How long does the restoration process take?

Q.   Are credit reports all the same?

A.   No. Each of the three reporting companies' reports look different and may not contain the same information.  The companies maintain their own databases and do not often share information.

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Q.   Do the credit reporting companies own the information on your credit report? 

A.   No. But, you do not own the information either.  It is owned by the individual merchant or creditor who put it there.

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Q.   Does paying a past due debt remove the debt from your credit report?

A.   Paying an old debt does not erase the fact that at one time you were not paying it as you agreed, but it is possible to update your payment history.

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