For those who may be unfamiliar with the credit process, here’s a quick summary: You apply for a credit account to purchase goods or services.  Based on various factors, the Creditor agrees to open a credit account for you and begins reporting your information to the Credit Reporting Agencies.  In turn, the Credit Reporting Agencies update, store, and share your information with other potential Creditors or potential employers.  There are laws governing all of you in order to protect each of you.  To break it down further…

Give Me Credit!

Companies (or, “Creditors") lend you money to purchase goods or services by opening a “credit account” in your name, which you promise to pay back according to the Creditor’s rules. 

Creditors use several different factors to determine your credit worthiness (the likelihood that you’ll pay as agreed during the next 2 to 3 years), how much credit to lend you and at what finance rate to lend it. 

Though each Creditor will have it’s own guidelines on granting credit, the most common factors taken into consideration are:

• Your job history,
• Your banking information,
• Your mortgage information,
• Your Credit Report,
• Your Credit Score,
• Previous credit accounts with the Creditor, and
• Special reasons for past credit problems (sometimes).

The Grapevine

Creditors may supply information about you to any or all “Credit Bureaus” (or, “Credit Reporting Agencies”) on a monthly basis.  As your Credit Score and Credit Report are the two most important factors a Creditor may use in granting you credit, you should obtain them from EACH Credit Reporting Agency at least once a year to check for omissions, inaccuracies and for possible identity theft.

If you are married, both you and your spouse should each request copies from all of the Credit Reporting Agencies, as the information contained in the reports may be different for you and your spouse.

Share and Share-alike

The Credit Reporting Agencies generally maintain the following information about you:

• Identifying information: your name, your current and previous addresses, social security number, telephone number, date of birth, current and previous employers
• Credit history: debt payments made to Creditors
• Public records: judgments, bankruptcies, foreclosures, tax liens, etc
• Inquiries: a list of Creditors and other parties authorized by you and/or by law, which have received your credit report
• Other information: banking information and/or collections

Think of the Credit Reporting Agencies as huge libraries filled with data about you.  They do not verify the information.  They only receive, update, and share their records on you.  It is YOUR responsibility to verify the accuracy of the information, which they hold.  It is the Creditors, NOT the Credit Reporting Agencies, which use this information to determine your credit worthiness.

As a consumer, you do have rights, which protect this information.

Your Rights

In the US, your rights are protected by:

• the Fair Credit Reporting Act (FCRA) and
• the Consumer Credit Protection Act (CCRA).

There may also be additional rights granted to you at the state level.  When there are contradictions between the FCRA and State law, the law which offers the best consumer protection will take precedence.  To find out more information about your state’s Consumer Protection Offices, check here. These acts are meant to protect YOU, the consumer, and establish rules for Creditors and Credit Reporting Agencies. 

In Canada, at the federal level, the Personal Information Protection and Electronic Documents Act (PIPEDA) outlines requirements for organizations who maintain personal information during the course of business.  In addition, individual provinces may have their own credit report legislation.  There is a list of provincial links available here.

Certain consumer rights are consistent between the US and Canada.  Among them:

• Access to your credit report is limited


• You have the right to know if information has been used against you


• You have the right to know what’s in your file


• You have the right to dispute incomplete or inaccurate information


• Inaccurate information must be deleted or corrected

Obtaining Your Credit Information

Once a year, you should check your Credit Report for accuracy and to guard against Identity Theft.  Since Creditors may report to one or more Credit Reporting Agencies, it is suggested that you request a report from each.  Married couples should each request a separate report from all three agencies, as the information may be different for each spouse.

You can also obtain a copy of the Credit Reporting Agency’s Credit Score for you.  These are not a part of your Credit Report, so must be requested separately (or, in addition to).

In The United States…

In the US, as of September 1, 2005, you may now request one free annual Credit Report, every 12 months, from each of the three major Credit Reporting Agencies.  The three agencies have created a central location for you to obtain these reports.  By law, ONLY www.annualcreditreport.com has been authorized to provide these free reports.  Be leery of any other organization that offers you a “free” Credit Report, as many times there ARE fees.

To get your free annual Credit Report:

• Visit www.annualcreditreport.com,


• Call 1.877.322.8228 or


• Complete the Annual Credit Report Request Form (available from www.annualcreditreport.com) and mail it to:


• Annual Credit Report Request Service
• P. O. Box 105281
• Atlanta, GA 30348-5281

To obtain your Credit Score and / or Credit Reports directly from the Credit Reporting Agencies, you may request them by phone or over the Internet.  There are fees.

You may be exempted from some of the fees, IF you:

• Are unemployed and intend to apply for employment in the next 60 days;


• Are on public welfare assistance;


• Believe your credit file may contain inaccurate information due to fraud;


• Have had an adverse decision (denial of credit, insurance, or employment) within the past 60 days.

The Credit Reporting Agencies are:

• Equifax - 1.800.685.1111


• TransUnion - 1.800.916.8800


• Experian - 1.888.397.3742

Apparently, there is a “new” Credit Reporting Agency.  It differs from the “Big Three” in that it does not sell consumer credit information to lenders, insurers, and potential employers.  Instead, it helps creditors compile mailing lists.  For example, if you have good credit, you are likely to receive many “pre-approved” credit offers.  If you have bad credit, you can count on receiving offers targeted specifically at you. 

• Innovis - 1.800.540.2505

(Please double-check each agency’s website for information required, fees required, and addresses if you are going to request by mail.)

Opting Out of Marketing Lists

While you’re requesting your Credit Reports, you may want to consider opting out of their marketing lists.  In the US, the Credit Reporting Agencies may sell your information to marketing firms.  To “opt out”, you may:

• Go to www.optoutprescreen.com,
• Call 888.5OPTOUT (888.567.8688), or
• Use the Letter to Opt Out of Personal Information Release provided in the Sample Letter Index.

You may also want to contact the Direct Marketing Association to remove your name from their mailing and telephone listings obtained from other sources.  See their site for more details.

Obtaining Your Credit Information

Once a year, you should check your Credit Report for accuracy and to guard against Identity Theft.  Since Creditors may report to one or more Credit Reporting Agencies, it is suggested that you request a report from each.  Married couples should each request a separate report from all three agencies, as the information may be different for each spouse.

You can also obtain a copy of the Credit Reporting Agency’s Credit Score for you.  These are not a part of your Credit Report, so must be requested separately (or, in addition to).

In Canada…

In Canada, you may request a copy of your credit report by mail (FREE) or online (FEE) from the major Credit Reporting Agencies.  In addition, you may request your Credit Scores, though there is a fee.

• Equifax Canada, Inc.
  Consumer Relations Department
  Box 190 Jean Talon Station
  Montreal, Quebec
  H1S 2Z2
  1.800.465.7166


• TransUnion Canada
  TransUnion
  Consumer Relations Centre
  P.O. Box 338, LCD 1
  Hamilton, ON
  L8L 7W2
  1.800.663.9980

  For Quebec Residents:
  TransUnion (Echo Group)
  1 Place Laval
  Suite 370
  Laval, PQ
  H7N 1A1
  1.877.713.3393

• Northern Credit Bureaus, Inc
  P.O. Box 727
  Rouyn - Noranda QC
  J9X-5C6

(Please double-check each agency’s website for information required, fees required, and addresses if you are going to request by mail.)

Opting Out of Marketing Lists

For Canadians, the only information that I’ve been able to find on “opting out” is to contact the Canadian Marketing Association.  See their site for more details.  Also, you may want to check the Office of the Privacy Commissioner of Canada site.  If you are aware of other options available, please let me know!

from the FTC:

For Release: June 4 , 2004

FTC Issues Final Rule on Free Annual Credit Reports

The Federal Trade Commission has issued its final rule regarding free annual credit reports under the Fair and Accurate Credit Transactions Act (FACTA) and the Fair Credit Reporting Act (FCRA). FACTA, which was enacted on December 4, 2003, amends the FCRA and requires, among other things, that the three nationwide consumer reporting agencies (CRAs) – Equifax, Experian, and Trans Union – provide to consumers, upon request, a free copy of their credit report once every 12 months.

woohoo!  good move by the FTC.  so what does this mean to you?  once a year, you are entitled to a *free* credit report, so you can find out what information has been gathered about you.  eligibility for these free reports is based on the FTC’s rollout schedule:

december 2004: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming

march 2005: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin

june 2005: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas

september 2005: Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia, Puerto Rico, and all U.S. territories.

currently, there are three ways to get these reports:

• online: www.annualcreditreport.com
• by phone: 1-877-322-8228
• by mail: download the request form at www.annualcreditreport.com and mail to:
  
  Annual Credit Report Request Service
  
  P.O. Box 105281
  
  Atlanta, GA 30348-5281
  

please note:  only www.annualcreditreport.com (and experian, transunion and equifax) has been authorized by law to provide these free annual credit reports. be leery of anyone else who states they can do so.

• Forums!

• Canadian Information

• Credit Reports
  • Obtaining Your Credit Reports
  • Understanding Your Credit Reports
  • Disputing Your Credit Reports
  • Improving Your Credit

• Credit Scores
  • What is a Credit Score?
  • How Credit Scores are Calculated
  • Importance of Credit Scores
  • Improving Your Credit Score
  • Obtaining Your Credit Score

• Information on Identity Theft
  • What is Identity Theft?
  • How does ID Theft Occur?
  • How to Minimize Your Risk
  • If you are a victim...

• Personal Finances
  • Bankruptcy Information
  • Bank Information
  • Credit Card Information
  • Insurance
  • Money Saving Tips
  • Mortgage
  • Social Security
  • Hoaxes, Scams, Etc

• Resources and Publications
  • Calculators
  • For Credit Reports & Credit Scores
  • For Identity Theft
  • Sample Letters
  • Frequently Asked Questions
  • Worksheets

• General