What is a Credit Report?

Your credit file primarily exists to provide employers, lenders, landlords, utilities and now insurance companies an account of how you pay your bills and repay loans. Think of it as your bill paying report card. Included in you credit report:

Personal information such as your full name, any previous names you may have used, current and previous addresses, social security number and current and past employers.
Details about your loan, retail and credit card accounts. Most important your payment history.
A listing of any court action such as a bankruptcy filed by you, tax liens or monetary judgments against you.
A listing of all parties that have requested your credit report.

Your creditors supply the information in your file. The credit bureaus compile the information and sell it to businesses authorized to get a look at your file. Information in your credit report is used to evaluate your application for credit, insurance employment etc.

Good Insurance Information to Know

We want you to be informed. These articles may answer some of your insurance questions but the best way to get the answers you need is to talk to an informed agent from FSC Insurance Agency. Call, e-mail or stop by today!

Check Your Credit Score At Least Once A Year

Lots of clients have been asking me lately about their credit report because most insurance companies now use your report in deciding whether they will write policies such as your homeowners insurance.

Here are some typical questions:

How do I get my credit report?
Is there a charge for my credit report?
How long does bad information stay on my credit report?

How do you get a copy of your credit report?

All you have to do is contact the three major credit bureaus by telephone, in writing or via the internet. The three major credit bureaus are:

Equifax, P.O. Box 740241, Atlanta, GA 30374; 800-685-1111; www.equifax.com
Experian, P.O. Box 2002. Allen, TX 75013; 888-397-3742; www.experian.com
TransUnion, P.O. Box 1000, Chester, PA 19022; 800-888-4213; www.transunion.com

Is there a charge for your credit report?

Yes, if you order it from the bureaus you will pay up to $9.00. However, you can get a free credit report if

You are a resident of Massachusetts, Colorado, Maryland, New Jersey or Vermont. Residents of those states may receive one free credit report per year from each credit bureau.
You have been denied credit, insurance or employment within the past 60 days as a result of your credit history.
You can certify in writing that you are unemployed and intend to apply for employment in the 60-day period beginning on the date you made the certification.
You are a recipient of public welfare assistance or you have reason to believe that your file at the agency contains inaccurate information due to fraud.

How long do credit bureaus keep credit information in your file?

Positive information can remain on your credit report indefinitely. However, negative information has to be removed after a certain time, depending on what it is. Here's how long:

Bankruptcies: ten years from settlement date
Civil suits and civil judgments: seven years from the filing date.
Late payments: Seven years from the date of original delinquency.
Accounts turned over to collection agency: Seven years
Paid tax liens: Seven years

Keep in mind that your credit report is a work in progress. Information is being added all the time. That's why you should review your credit report for inaccuracies or omissions at least once a year.

More Articles: