Who Can Access My Credit Report?
Federal law states that only certain people can obtain a copy
of your credit report and that your credit report can only be
used in a certain manner. You may request a copy of your credit
report at any time but only those associated with one of the following
may legally review your report:
Application for a government license
Credit transaction or legitimate business inquiry
Hiring and promoting purposes
Insurance
There are two exceptions to this rule, however. You may give
written permission for someone else to access your credit report
and a court or federal grand jury may obtain a copy of your credit
report through subpoena.
What Creditors Can And Can Not Consider
The Equal Credit Opportunity Act (ECOA) passed in 1974 and then
amendments to it in 1976, made it unlawful for lenders to discriminate
on the basis of:
Sex
Marital Status
Race
Color
Religion
National Origin
Age
Receipt of Public Assistance
Lenders can consider:
How much money you make
How long you've lived where you live now
How much your home, car or other assets are worth
How much money you have in the bank
Whether you pay your bills on time
How long you've worked for the same company
How much money you owe to others
These factors are commonly divided into what's called "the
3 C's of consumer credit":
Character: This includes
your length of residency and employment, which give lenders
an indication of your personal character. Other ways lenders
evaluate financial character is by reviewing your existing credit
relationships: credit cards, bank loans, mortgages, etc.
Capacity: Living expenses,
open credit limits, current debts and other payments give lenders
an idea of how much money you are already paying out and your
ability to pay back any future debts.
Collateral/capital:
This allows creditors to secure a loan. Thus, the worth of these
assets is important to the decision to extend credit/loans.
How Long Does Information Stay On Your
Credit Report?
Federal law specifies that past errors can't haunt you or your
credit report forever. Late payments, accounts that have been
turned over to a collection agency, judgments filed against you
in court, and most other blemishes are removed in seven years.
The seven years is calculated from either the date of the original
delinquency or by the date of filing (if it's a matter of public
record). The length of time that bankruptcy remains on your credit
report depends on which type of bankruptcy you have filed. Chapters
7, 11 and 12 remain for 10 years. A Chapter 13 (in which you do
pay at least a portion of your debts) remains on your credit report
for only 7 years. Inquiries also remain on your credit report
for varying lengths. Depending on the type of inquiry, this can
be between one and two years. Positive information remains on
your report indefinitely.
