What Kind of Information Do Credit
Bureaus Collect and Sell?
The three major Reporting Agencies (CRA’s) in the United States are Equifax, Experian and TransUnion. If you have ever applied for credit of any kind, each of these credit bureaus maintains a financial file on you.
Known as your credit report, this file includes details about your financial history and status, including the following information:
- Your address and phone number
- Former addresses
- Current and former employers
- Where you have applied for credit
- Account payment history from credit card companies
- Car loan information
- Mortgage information
- Requests from companies to look at your credit report
When you apply for a loan or a credit card, the issuing company or lender wants to know how promptly you pay your bills. This helps them determine whether or not to accept your application. As a member or one or all of the CRA’s, these companies can purchase the financial information that is included in your credit report.
The Fair Credit Reporting Act
According to the Fair Credit Reporting Act, anyone with a “legitimate business need” can gain access to your credit report, including:
- Any company considering giving you credit
- Landlords
- Insurance companies
- Financial companies
- Companies with which you have a current credit account
- State or local child support enforcement agencies
- Any government agency (although they can generally only access your name, address and employer)
- Employers and potential employers
Typically, only an employer or potential employer has to gain your written consent in order to obtain access to your credit report.
Although many companies can purchase your credit report, they are not allowed to sell any information from that report to another party. In many instances, these companies cannot even share the information with you.
However, if a company denies you credit, the creditor is required to tell you why you were turned down if you ask. Their answer will probably be a somewhat general response such as “you have delinquent obligations.” You will have to request a copy of your credit report to determine the specific details.
Free credit reports
According to the FTC's final ruling under the Fair and Accurate Credit Transactions Act, all Americans are now entitled to receive free credit reports each year at their request. You should check your credit report at least twice a year to check the report’s accuracy and ensure no accounts have been opened without your consent. (This could be a sign that you are the victim of identity theft.)
Mistakes in your credit report could lower your credit rating, which could have a negative impact on the rates you receive on loans. Lenders typically offer lower interest rates to consumers with a better credit score. If you are considering taking out a substantial loan, you should check your credit reports first. If you find inaccuracies in your included in your report, you can dispute these items.
Opting out of mail solicitations
The credit reporting agencies are allowed to sell lists of the names and addresses of people with credit reports to banks and credit card companies. These companies then send promotional mail and solicitations to the people on these lists. If you want to stop receiving these mail solicitations, you can call 888-5OPTOUT (888-567-8688).
