Credit Reports (cont.)

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Who sees my credit report?

In essence, anyone who has a legitimate business reason can apply to look at your credit report but they will have to prove their interest in your file. Typical examples would be (but not limited to) banks, department stores, employers, government officials, insurers, utility companies, as well law enforcement officials. Your credit report is not available for all and sundry to obtain, and there are strict governmental rules covering the business practices of the credit reporting agencies. A recent rule change allows for each individual to receive one free copy of their credit report per year. It is most definitely in your financial interests to avail yourself of this offer each year.

What happens if I am denied credit?

If you are denied credit because of something on your credit report, the lender must give you the name of the credit agency who created the report. You then have 30 days in which to request a free copy of your report.

How long does information stay on a credit report?

As you continue to apply for loans and other credit, as well as pay off existing debt, entries are constantly added to your credit report. Information is kept on the report for a period of seven years, unless a bankruptcy is involved, in which case ten years. So if you have a poor financial track record, and therefore have a bad credit rating, it will take a sustained period of good financial management to clear your bad rating and restore it.

Your credit report rights

You have your rights protected when it comes to the kind of information a credit report can reveal about you and who has access to it. Essentially, you can:

• Obtain a copy of your credit report (depending on which country you live in, this might entail a fee).

• Obtain a listing of anyone who has received a copy of your credit report.

• Dispute information on your credit report that you feel is inaccurate.

• Explain any circumstances relating to entries on your credit report.

• Complain to an independent, higher authority if you feel you have been wronged.