Creditworthiness is important. Credit reports are used for many purposes – by lenders, landlords, insurance companies and employers. Is your credit report accurate? Can you obtain a credit report on another person or company?

Federal and state laws govern how credit reports can be used. The federal law is called The Fair Credit Reporting Act (FCRA). State laws vary but offer protections against inaccurate reports.

Credit Reports
Information is collected by three credit reporting agencies – Equifax, Experian and Trans Union – in computer databases. The information is compiled and organized into a credit report. Unfortunately, there are frequently errors in the reporting by these agencies that can have detrimental impact.

Obtain a copy of your credit report.
To determine if your credit report is accurate, the first step is to request a copy from each of the reporting agencies. This can be done online, in writing or over the phone. In some states (e.g., Massachusetts), you are entitled to one “free” credit report each year. In other states, you may be charged a small fee. There is no charge if you have been turned down for credit, employment or rental housing because of information in your credit report.

To request a credit report go to:

Equifax Information Services LLC
P.O. Box 740241
Atlanta, Georgia 30374-0241
800-685-1111
www.equifax.com

Experian (formerly TRW)
P.O. Box 2002
Allen, Texas 75013
800-397-3742
www.experian.com

Trans Union
P.O. Box 1000
Chester, PA 19022
800-916-8800
www.transunion.com

You will need to provide name, social security number and address.

Is your credit report accurate?
You have a right to dispute inaccurate information. The credit reporting agency must investigate and respond to you within 30 days, without charge. Inaccurate information must be removed. If you are not satisfied with their response, you can write a letter of explanation that will be included in your file. Or, you can escalate the issue. You can file a complaint with the Federal Trade Commission (www.ftc.gov). For more information on how to dispute credit report errors, see: http://www.ftc.gov/bcp/conline/pubs/credit/crdtdis.htm.

When can you ask for a credit report on someone else?
There are many times that you want to know if another party is credit worthy. Before you request a credit report on a prospective customer, business associate, tenant or employee, inform them in writing that the credit report is required. Authorization to obtain a credit report can be included on their order or application. Business credit reports are available from the credit reporting agencies on a fee basis.

Identity Theft
In conclusion, checking the accuracy of your credit report is especially critical since the FBI has named “identity theft” as the fastest-growing crime in America. Before making business decisions based on a credit report, it’s important to confirm the accuracy of the report.

Jean D. Sifleet
Attorney & CPA
120 South Meadow Road
Clinton, MA 01510 USA
978-368-6104
jsifleet@aol.com

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Jean Sifleet, business attorney, CPA and three-time entrepreneur, is pleased to announce the release of her new book, Advantage “IP”: Profit from Your Great Ideas. Visit the Smartfast Bookstore for details, and to order the book.