Credit Reports

The short version

Your credit report is a detailed record of your borrowing and bill-paying history. Lenders, landlords, and even some employers use it to decide if they will do business with you. Understanding your credit report and fixing any errors on it is crucial because mistakes can make it harder for you to get loans, housing, or jobs.

The law this is built on

Every point below comes from the authority named next to it. Verify the current text before relying on it.

15 U.S.C. § 1681a(d)
This section defines a 'consumer report' (what we commonly call a credit report) as information from a consumer reporting agency (CRA) about your creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.
Why it matters:
15 U.S.C. § 1681g(a)
Upon your request, a CRA must clearly and accurately disclose all information in your file at the time of the request, the sources of that information, and a list of everyone who has received your report.
Why it matters:
15 U.S.C. § 1681i(a)(1)(A)
If you dispute the accuracy or completeness of any item in your file with a CRA, the CRA must reinvestigate the disputed information free of charge and record its current status or delete the item within a reasonable period of time.
Why it matters:
15 U.S.C. § 1681c(a)
This section generally limits how long negative information, such as bankruptcies (typically 10 years) or most other adverse items (typically 7 years), can remain on your credit report.
Why it matters:

Words you need to know

Consumer Reporting Agency (CRA): A company that collects and sells information about you, such as your payment history, to other businesses. The three main CRAs are Equifax, Experian, and TransUnion.
Credit Report: A detailed summary of your financial history, including how you've paid bills, debts, and other financial obligations. It's compiled by a CRA.
Credit Score: A three-digit number that summarizes your credit risk at a particular point in time. It's generated from the information in your credit report.
Dispute: The process of challenging information on your credit report that you believe is inaccurate or incomplete. You have a legal right to do this under the FCRA.
Permissible Purpose: Under the FCRA, consumer reporting agencies can only give out your credit report to those who have a legal reason (a 'permissible purpose') to see it, such as a lender considering you for a loan.
Furnisher: A company that provides information about you to a CRA, such as a credit card company, bank, or landlord. They also have responsibilities under the FCRA.

Your rights

✓You have the right to get a free copy of your credit report from each CRA once every 12 months (15 U.S.C. § 1681j(a)(1)).
✓You have the right to dispute inaccurate or incomplete information on your credit report (15 U.S.C. § 1681i(a)(1)(A)).
✓You have the right to have errors corrected or deleted by the CRA (15 U.S.C. § 1681i(a)(5)).
✓You have the right to receive a copy of your credit score (for a reasonable fee) (15 U.S.C. § 1681g(f)(1)).
✓You have the right to know when your credit report has been used to deny you credit, insurance, or employment (15 U.S.C. § 1681m(a)).

How the process actually works

1
Access Your Report
Once every 12 months, or more often if certain conditions apply (e.g., identity theft, unemployment).
You can request a free copy of your credit report from each of the three major CRAs (Equifax, Experian, and TransUnion) once every 12 months. The official website for this is AnnualCreditReport.com.
2
Review Your Report
Immediately after receiving each report.
Carefully check all sections of your credit report for inaccuracies. Look for wrong names or addresses, accounts you don't recognize, incorrect payment statuses, or outdated information.
3
Identify Errors
As you review your report.
Mark any information you believe is incorrect or incomplete. Gather any documents that support your claim, such as payment records or account statements.
4
Dispute with CRA
As soon as you identify an error.
Send a dispute letter to the credit reporting agency (CRA) that issued the report. Clearly state what information you are disputing and why, and include copies (not originals) of supporting documents. Keep records of everything you send.
5
CRA Investigation
Within 30 days of receiving your dispute (or 45 days if you provided new information during the initial 30-day period) (15 U.S.C. § 1681i(a)(1)(A)).
The CRA must investigate your dispute, usually by contacting the information furnisher (e.g., your bank or credit card company). They must also provide you with the results of their investigation.
6
Furnisher's Role
During the CRA's investigation period.
If the CRA determines an error exists, the furnisher must report corrected information to all CRAs. If the furnisher finds the information is accurate, they must notify the CRA of that finding.
7
Review Results
After the investigation is complete.
The CRA will send you the results of their investigation. If the information was found to be inaccurate, it must be deleted or corrected on your report.

Deadlines that can end your case

CRA Investigation Response
30 days (or 45 days if you provide new information during the 30-day period)
If the CRA doesn't investigate and respond within this time, they may be violating the FCRA.
Most Negative Information on Report
7 years
Most negative items like late payments or collections must be removed after 7 years (15 U.S.C. § 1681c(a)). Bankruptcies can stay on for 10 years.

Costly mistakes

✕Not checking your credit report regularly for errors or fraudulent activity.
✕Only checking one credit report instead of all three major ones (Equifax, Experian, TransUnion).
✕Paying a company that promises to 'fix' your credit report without understanding your rights to do it yourself for free.
✕Not keeping detailed records of your disputes, including copies of letters and documents sent and received.
✕Disputing accurate information, which can waste your time and the CRA's resources.
✕Waiting too long to dispute an error, which might make it harder to gather supporting evidence.

Your checklist

Request your free credit reports from AnnualCreditReport.com.
Review each report from Equifax, Experian, and TransUnion carefully.
Identify any incorrect or incomplete information.
Gather supporting documents for any disputes.
Write a clear dispute letter to the credit reporting agency for each error.
Mail your dispute letter(s) via certified mail with return receipt requested.
Keep copies of all correspondence and supporting documents.
Review the CRA's investigation results and confirm corrections.

Common questions

How often should I check my credit report?

You are entitled to a free copy of your credit report from each of the three major CRAs once every 12 months (15 U.S.C. § 1681j(a)(1)). Many experts suggest spacing these requests out throughout the year to monitor your credit more frequently, for example, getting one report every four months.

What happens if a CRA doesn't fix an error I reported?

If the CRA investigates but doesn't correct what you believe is an error, you have the right to add a brief statement to your file explaining your side of the dispute (15 U.S.C. § 1681i(b)). You may also be able to sue the CRA for not following the FCRA.

Does disputing an item hurt my credit score?

Simply disputing an item on your credit report does not directly harm your credit score. If the item is removed or corrected, it could potentially help your score, especially if it was a negative mark.

Can employers check my credit report?

Yes, employers can check your credit report for employment purposes if they have your written permission (15 U.S.C. § 1681b(b)(2)). However, they typically receive a modified version that doesn't include your credit score or account numbers.

Are credit scores part of my credit report?

No, your credit score is a separate calculation derived from the information in your credit report. While your report contains the data used to calculate scores, the score itself is not automatically included in the free report you get from AnnualCreditReport.com, though you can often purchase it (15 U.S.C. § 1681g(f)(1)).

How this changes by state

The federal Fair Credit Reporting Act (FCRA) is the primary law governing credit reports, so many of your core rights are consistent nationwide. However, some states have their own consumer protection laws that might offer additional protections or rights regarding credit reports, such as identity theft protections or specific rules for freezing and unfreezing your credit. To find your state's specific rules, you can look for consumer protection agencies or attorney general's offices on your state government's website.

When you need a lawyer

Consider contacting a lawyer if the credit reporting agency fails to investigate your dispute within the required timeframe, if they don't remove inaccurate information after their investigation, if you believe your rights under the FCRA have been violated, or if you are a victim of identity theft and need help navigating the cleanup process.

Do this today

→Go to AnnualCreditReport.com and request your free credit reports from Equifax, Experian, and TransUnion.
→Carefully review each report for any errors or unfamiliar accounts.
→If you find an error, gather any documents that can prove it's incorrect.
→Draft a letter to the credit reporting agency explaining the error and include your supporting documents.

This lesson is legal information for educational purposes only, based on 15 U.S.C. § 1681 (FCRA). It is not legal advice and does not create an attorney-client relationship.