What is Credit history and Consumer credit file?
The record of an ability of a consumer to repay debts and responsibility in repaying his debts is known as his credit history. Credit history comprises of information like number of credit accounts, amount owed by consumer, amount of credit used which are available, whether bills are timely paid or not, credit enquiries etc. using these records a detailed report is prepared of individual’s credit history which known as Credit Report. To get credit report and credit score for free visit authorized website www.AnnualCreditReport.com.
Credit file contains the details of borrowing and repayment activities. The information available in credit file helps in determining credit score of a consumer.
What is free credit report?
There are three major credit reporting bureaus which are Equifax, Experian and TransUnion which are bounded by the Act called Fair Credit Reporting Act to supply consumers free credit report once in a year. If any company has taken contrary action against an individual then also he is authorized to get a free credit report as per Federal law. In this case, individual has to apply for such report within 60 days from the adverse action.
What does credit report consists of?
Credit report is divided into four parts-
- First section contains the personal information about the consumer and sometimes the variances of the name of the consumer.
- In the second section the detailed information of credit is mentioned.
- Third section consists of insolvencies, tax liens and other public records.
- At last it mentions a list of the entities which have enquired about the consumer recently.
How to fix if there is any inaccurate information in credit report?
If an individual discovers that there are any sort of inaccuracy is there in his credit report, he can contact the credit bureau with a written statement and list of creditors. Credit bureau will then investigate and provide a written report and an updated copy of credit report. If the report is in individual’s favor then creditor will provide such information to all the three bureaus.
Consumers can get a Free Credit Report Annualfor once but an act called Fair and Accurate Credit Transactions Act along with the bureaus mentioned above are working to provide consumers free credit report thrice a year.