As they should, the average person often has a wealth of questions when it comes to their rights concerning their credit reports. Because your credit score can hugely impact your ability to purchase a car, attain a loan, or sign a contract, it is very important to understand your rights as a consumer. Anything you can do to monitor and control this aspect of your financial life can greatly benefit you in the future. Below, you will find some of the most frequently-asked questions when it comes to this kind of financial concern.
Your Most Basic Rights
While your rights as a consumer can vary from state to state, there are some basic laws in place in states such as Arizona that are meant to protect your financial profile. Your complete rights are outlined under the FCRA regulations. Among the most important is the law stating that you must be informed if any information from your credit report is used against you in any way. The most common instances of this type of action include establishing insurance rates, applying for credit, and potential employment. Credit reporting agencies are also required to delete any incomplete, inaccurate, or unverifiable information from credit reports. You must also give your consent in order for credit reports to be given to prospective employers in Arizona.
Accounts on Your Report
People are often left in the dark when it comes to the length of time that an item remains on their credit report, making either a positive or negative impact. The length of time an account can remain on the report actually varies according to the type of account being considered. However, most accounts remain on your report for a period of seven years from the date that they are determined to be delinquent. Although, some reporting agencies keep items that have no negative impact on your report for up to ten years.
Bankruptcies are one of the most common concerns for people trying to get a handle on their credit. Most bankruptcies stay on record for 10 years from the file date. Chapter 13 bankruptcies differ slightly, being dismissed up to seven years after appearing. Inquires into your credit report are also kept on file. Any request for information related to employment stays on record for two years while all other types of inquires tend to be limited to one year. Additionally, the fact that an account has been paid does not mean that it will come off of your credit report. Regardless of the amount, accounts paid in full are likely to stay on your credit report for at least seven years.
People can often run into difficulty when trying to attain a copy of their credit report. The FACT Act is meant to lessen the trouble and expense associated with this process. The Fair and Accurate Credit Transaction Act ensures that every United States citizen can receive one free credit report every 12 months from each of the three major credit-tracking companies. These three companies are Experian, TransUnion, and Equifax.
In the digital age, the security of your Arizona credit report can also become a major worry. As a consumer, you have the right to take steps that help to protect your financial identity. You can ask the three major credit-reporting agencies to place “fraud alerts” in your file. These safeguards let other agencies know that you may have been the victim of identity theft in Arizona or other types of breaches. They can also make it more difficult for individuals to fraudulently establish credit in your name. Although, consumers should be aware that these protections can also delay the processes required for obtaining credit in some situations.
Arizona Credit Lawyers – Gary Nitzkin
3260 N. Hayden Road, Suite 210
Scottsdale, AZ 85251
Phone: 480-771-6001 / 480-771-6001