Your Credit Report and Your Privacy

Having and keeping good credit is becoming more and more important in our financial life. Our interest rates and how much extra we pay on loans and insurance is based on our credit report. While credit is very important, knowing your rights and how to protect your good name is even more important.
www.privacyrights.org lists many rights and ways to protect your credit. Read the report
Listed are below are some highlights of the report that are key to you, the consumer.

• How do credit scores affect my application?

The practice of credit scoring is widespread and growing. Until recent years, consumers have seldom gained access to their credit score and have not been able to learn the factors that went into the scoring process. But a 2000 law in California gave mortgage applicants a right to see their credit score (California Civil Code 1785.10, 1785.15-1780.20). Since then, the credit industry voluntarily loosened its grip on the credit score. Further, the recent FACTA amendments to the FCRA give you new rights to know your credit score as well as an explanation of the factors that determined the score.

In March 2006 the three national credit bureaus announced a joint scoring model called the VantageScore which sets a scoring range different than the FICO score. To learn more about VantageScore, see www.experian.com/products/vantagescore.html.

To learn more about the topic of credit scoring, read:

• FTC guide, www.ftc.gov/bcp/conline/pubs/credit/scoring.htm
• PRC Fact Sheet 6c on credit scores, www.privacyrights.org/fs/fs6c-CreditScores.htm
• Fair, Isaac and Co. (FICO) web sites, www.fairisaac.com and www.myfico.com. FICO is the leading developer of scoring methodology. The credit score is often called a "FICO."

• Who has access to my report?

Anyone with a "legitimate business need" can gain access to your credit history, including:

	Those considering granting you credit.
	Landlords.
	Insurance companies.
	Employers and potential employers (but only with your consent).
	Companies with which you have a credit account for account monitoring purposes.
	Those considering your application for a government license or benefit if the agency is required to consider your financial status.
	A state or local child support enforcement agency.
	Any government agency (limited usually to your name, address, former addresses, current and former employers).

Generally, only an employer or prospective employer needs your written consent to obtain a report. An exception is Vermont where any user needs your oral or written consent. In practice, most potential creditors ask for your permission to review your report. Your permission is not required when inquiries are made in connection with a pre-approved credit offer.

• Free Credit Reports.

Thanks to the federal FACT Act, consumers nationwide are now able to get a free copy of their credit report annually from each of the three credit bureaus - Equifax, Experian, and TransUnion (FCRA sec. 612 (a)(1)(A)&(B)).

To order your free reports, you can call the official toll-free number, (877) 322-8228. You can also go online to www.annualcreditreport.com where you can order your reports directly. Or you can print out the form and mail your request. https://www.annualcreditreport.com/cra/requestformfinal.pdf

The World Privacy Forum has released a study that indicates that privacy-conscious consumers may be better served by ordering their credit reports by phone or mail rather than online. See www.worldprivacyforum.org/calldontclick.html for more details.

For more information about access to free credit reports, see the Federal Trade Commission's Facts for Consumers at www.ftc.gov/bcp/conline/pubs/credit/freereports.htm.

You are not required to order all three credit reports at the same time. If you wish, you can stagger your free reports over the course of a year by ordering one report every four months. This way, you are monitoring your credit reports on an ongoing basis. But if you are an identity theft victim or are shopping for credit, it is best to order all three at one time.

There are certain times when you are entitled to a free copy for special circumstances. The new rule that gives you free access once a year does not affect your ability to get a free report in the situations listed below. You are entitled to a free credit report:

	If you have been denied credit (you must request a copy within 60 days)
	If you are unemployed and intend to apply for employment in the next 60 days
	If you are on public welfare assistance
	If you have reason to believe your file contains inaccurate information due to fraud or identity theft
	If an adverse decision related to your employment has been made based in whole or in part on information contained in the report
	If your report has been revised based upon an investigation you request

Further, the laws in seven states give residents the ability to obtain credit reports free of charge. This is over and above the free annual credit report available nationwide through the FACT Act. These states are: Colorado, Georgia (2 per year), Maine, Maryland, Massachusetts, New Jersey and Vermont.