Why do we need crediti reporting and credit historyi?

Credit reporting is needed because it provides the information that helps consumers make purchases, secure loans, pay for college educations, and manage their personal finances. Credit reporting makes it possible for
stores to accept your checks, banks to offeri credit and debit cards, businesses to market products, and corporations to better manage their operations to benefit the world's economy.

What is a credit inquiry?

An "inquiry" is a listing of the name of a credit grantori, or authorized user who has accessed your credit file. Each inquiry is posted to the credit file so you know who has obtained a copy of your credit history. Credit grantors post an inquiry before offering you a pre-approvali credit card applicationi. These are listed as "promotional" inquiries on your credit file because only your name and address were accessed, not your credit history information. They are NOT sent to credit grantors or businesses for reasons of credit reporting. They are listed for your informational purposes only.

What is the Fair Credit Reporting Act?

The Fair Credit Reporting Act (FCRA) is the federal law regulating credit reporting companies like Equifax, Experian, and Trans Union. It has been in effect since 1971. A revised FCRA became effective October 1, 1997. This law protects consumers' rights, such as the right to review and contest information in their credit profiles. It also specifically defines who can access the information in a credit profile, and how you are notified of this activity. You may obtain a copy the FCRA from the Federal Trade Commissioni.

How does divorce affect consumer credit reporti?

A divorce decree does not supersede the original contracti with the creditori, and does not release you from legal responsibility on any accounts. You must contact each creditor individually and seek their legal binding release of your obligation. Only after that release can your credit history be updated accordingly.

Should I use one of those companies that guarantee fast and easy credit repair?

It's your choice. Be cautious and there are many scam artists in this field. But a good credit repair service can save you quite a bit of money due to lower interesti rates on your mortgagei and other loans.

What if an item on my credit history is correct, but I disagree with it being reported?

For those items in your credit history which you feel deserve further explanation (such as an account that was paid late due to the loss of job, military call-up, or unexpected medical bills), you may send a brief statement to the appropriate credit reporting agency. The information will be placed on your credit history profile and will be disclosed each time your credit profile is accessed. However, most grantors don't take this sort of information into account.