Legal Obligations For Employer For Adverse Action Based On Employees Credit Report

If an employer takes any adverse action regarding an employee based on information in his credit file, he has to follow certain legal procedures, which failing to do could result in a lawsuit against the employer by state and national government agencies.

The employer should tell you that he might use the information in your credit report to make a decision regarding your future employment. This notification is separate from other documents like the job application. The employer cannot get a report about you for a common purpose without getting your permission or authorization first which is usually in written.

Pre-adverse action procedures

If the employer uses the information in your credit file or any other background report to take adverse action against you such as denying your employment or promotion or terminating yours employment or reassigning you, he must give you a copy of the report and a document called a summary of your rights under the fair credit report act before taking the adverse action. Read the report and contact the company that issued it if you think it has inaccurate or incomplete information.

You can try explaining the negative information into your employer which might work to your advantage but that will not fix the errors themselves on your credit report. In order to do so you need to contact the credit bureau and file a dispute. If the dispute results in a revelation that the information is indeed incorrect or inaccurate, the credit reporting company has to correct that information and send an updated report to the employer if you ask them to.

You must always make an effort to keep your credit report as accurate as possible. Even if you do not see any benefit in the short term, having an accurate credit report is important for any and all future need and requirement.

Adverse action procedure

If the employer takes an adverse action against you based on the information contained in your credit file, he must inform you already, in writing or electronically about it. The notice must include the name and address and phone number of the credit reporting agency that supplies the credit report or these background information.

The employer must issue a statement that the company that supplied the information didn’t make the decision to take this adverse action and cannot give you any specific reasons for it.

He must provide you with a notice that says you can dispute the accuracy or completeness of any information in your credit report and to get an additional fee report from the company that supplied the credit or other background information if you ask for it within 60 days.

What happens when employers do not comply with the FTC

There can be legal repercussions for employers who do not comply by the guidelines laid down by the FC are. Whether they failed to get written permission from the employee before getting a copy of their credit file or any other background report, failed to provide the appropriate disclosures in a timely way, failed to provide adverse action notice to unsuccessful job applicants, they can be sued by FTC, as well as other federal and agencies and the state. If you think an employer has violated the guidelines laid down by the fair credit reporting act, you can report it to the Federal Trade Commission.

Notice of negative public records

If the credit reporting bureau provides employers with a credit report that has negative information about you gathered from public records such as tax liens, court judgments, bankruptcy filing or criminal conviction, that company either has to tell you that it provided information to the employer or it has to take special steps to make sure that the information is accurate.

If you do get a notice that her company has provided negative public record information to a potential employer you may have the opportunity to correct or clarify it which may help you get the job.

How Can An Employer Access Your Credit Report To Check

An employer has several legal obligations to fulfill when it comes to checking the background of an employee including his credit report.

The one major point regarding an employer accessing your credit report is that he’s each must get permission from you in return before he can contact the credit reporting bureau to access your credit file. If you are worried about the information on your credit is pot and refused to give permission, you may well likely be refused a job. But then again giving access to your credit report to an employer when you know that it has damaging information may still result in the job getting denied due. For this reason it is a good idea to order a free copy of your credit report from each of the credit bureaus before you apply for a job. You may either have a suitable explanation for your empire for any negative information present on it or you may start working on it a bit in advance to fix and repair any mistakes or negative information.

In other to access your free credit report visit http://www.annualcreditreport.com or call 18773228228.

When you order your free Annual Credit Report you will need to verify your identity for providing your name, address, Social Security number, date of birth as well as additional information that only you are supposed to know about such as a loan account number, mortgage payment etc. Keep certain basic financial information handy when you are trying to access your free Annual Credit Report.

You can also fill out the complete Annual Credit Report request form and mail it to the following address to get your credit report through postal mail.

Annual Credit Report request service, P.O. Box 105281, Atlanta, GA 30348 — 5281.

You can access the Annual Credit Report request form from www.FTC.GOV/credit.

There are also some more legal obligations that an employer is supposed to follow. He must show you the credit report and he must tell you how to get your own copy. If you are denied a job, you can access your credit report for free within 60 days.

How Credit Reports Become Part Of Background Check By Employer

Your credit report can very well and most probably be used as a part of background check done by employers when you are looking for a job.

Whenever you apply for a job, the employer is liable to do a check on a background. This background information can include your driving record, criminal record, employment history as well as a credit report. It does not matter how you have applied for the job. You may have applied online or send your resume to by mail.

As long as you have provided the potential employer with your permission to do a background check, he can access your credit report. Your credit report has information regarding your personal details such as where you live along with information about your finances such as how regularly you have paid your bills, whether you have filed for bankruptcy in the past or are there any public judgments against you.

Credit reporting bureaus and other businesses that provide background information to employers regarding potential employees send credit files to employers that use it in turn to evaluate your application for employment. Your credit report can determine whether you get the job, are promoted or reassigned.

Credit reporting agencies not only provide information to employers but to several other businesses as well. Credit reporting businesses have an extremely profitable business where they provide information on your financial background through your credit report. They sell it to other creditors, insurance companies and banks.

The Federal Trade Commission enforces a law called the Fair Credit Reporting Act which protects the privacy and accuracy of information in your credit report. The Fair Credit Reporting Act also speaks about your rights as a job applicant and the employer’s responsibility when using your credit report as a way to assess your job application. This is the same law that entitles you to a free credit report from each of the three national credit bureaus Trans Union, Equifax and experience once every 12 months. This means that in any year you can access three credit reports.

 

How To Understand The Information in The Credit Report

How to read your 3 credit reports.

This is an example and explanation of the different sections that are present in your credit report. And how you can understand them

By now that you have learned how and where to access your free personal credit reports, it will be just as important the to be able to read and understand them as well as compare them. Although you will get your three credit reports from the three national credit bureaus, Equifax, Experian and Trans Union all in one place, you will probably discover that they differ in the way they organize and format the information. This is because the three credit bureaus are not associated with each other. Even though they maintain the website of annual credit report.com jointly they do not share information the with each other. So not only is the format of the three credit reports different but also the information contained in it. Even if the same credit or reports the same information to all three credit reporting agencies, the time or manner in which the data is updated may differ. A common differences is the reporting of different balance for the same exact account appearing on all three credit reports.

There was a time the credit reports used to be difficult for a normal consumer to read. But with strong lobbying efforts from the consumer forums, the credit reports have become fairly easy to read and understand. This applies to the personal credit reports that a person can order from himself. They have been formatted and streamlined in a way to make information easiest to understand by the consumer. The third-party reports such as those given to potential lenders, mortgage lenders, banks and financial institutions are more confusing and complex because they are specifically designed for the application process. Sometimes consumers manage to get a copy of this credit report from their lenders which throws them off on a lot of things. In order to check the details on your credit report, it is highly advisable that you order your own personal copy online, through mail or over the phone. In case you need to dispute any information in your credit report, you’re going to need a copy of your personal credit report anyway. You cannot dispute your credit report before ordering a personal copy from the credit bureau’s.

While the formatting of the data may differ, the information contained in the three credit reports is essentially the same. The information contained in your credit report is usually comprised of the following:

Personal information

Every credit report will contain personal information about you such as your name, any alias, date of birth, Social Security number and address. This section can contain variations of your name and address the if they had changed in the past. Sometimes it can be a variation in the name because the consumer different names with different creditors such using a middle name with one and not with another. The credit bureau will maintain a history of all personal information reported. This is nothing to be concerned about as long as you can identify that the name is yours. A history on the personal details helps pinpointing identity theft as well. It is important to review this information for accuracy as this is how your credit file is indexed. A corrupt file missing or having inaccurate information may prevent your file from being pulled resulting in a “no record found” for your would-be creditor or employer. This is especially true if the incorrect piece of information is your Social Security number, name or address. Not all creditors will take the time to investigate your claim of having good credit report when they are unable to locate your record in the first place.

Employment information

The employment information on your credit file also comes from your creditors. It is not reported by the Social Security Administration, Internal Revenue Service or the Department of Labor. Any and all information that a credit bureau has about your file comes either through public records or your creditors. When you fill out a loan application, you are also required to fill out your employment details in many cases. If the creditor chooses to report this information when he reports to the credit bureau, the credit agency can put it on your file.

It is possible that the employment information on your credit file is not accurate if you have changed jobs recently and have not updated them with your lenders. But this is not so much of a problem as many creditors understand that this section can be incomplete or inaccurate. They also understand that in order to verify your employment they should contact your workplace directly and not rely on what is being reported on your credit file.

Credit score

In case you ordered your credit score along with your credit report, this number will tell you a good deal about your overall credit worthiness and how your credit report stands. It is a good starting point to know whether your credit is good, bad or excellent. No matter what this number says about you and no matter what your credit report has to say, do not get emotional and do not panic. If your credit score is not great at this point as you probably knew, you can improve it with effort over time and with guidance which is amply provided on this website.

Public records

The information contained in this section of your credit report is obtained from public records such as county, state and federal courts and includes bankruptcies, judgments and tax liens. Only court judgments pertaining to civil judgments connected to credit are included in your report. The format may differ from one credit report one, but this section typically includes a file date, case number, a state, jurisdiction, balance and other relevant details.

Collection accounts

This section will contain any account that has been sold or assigned to a collection agency for recovering. The collection accounts may not only result from your credit usage but also from other sources such as medical bills, insurance payment and even utility bills when you have fallen behind on his famous. While these payments are not reported to the credit bureaus when paid, not paying them may result in the creation of a collection account which may eventually be reported on your credit report. The type of data that you will see will include the account number, the date of last activity [DLA], the balance owed and the current account status, whether or not the debt has been paid, is being paid or remains unpaid. Sometimes the creditors themselves have internal collection departments. In which case you will see the name of the original creditor listed in the collections section as well.

Revolving accounts

Revolving account section is probably the one that affects your credit report most. Examples of revolving accounts are credit cards and a certain lines of credit. Revolving accounts also called trade lines and refer to accounts in which the balance goes up and down according to usage. The available credit which is usually set at a limit varies accordingly. Because of the revolving cycle nature of these accounts, the information reported on your credit report will probably vary every month and the also have a variable impact on your credit score. These are the type of accounts that you can manage willfully in a manner and to have the best possible impact on your credit score.

Interpreting and understanding this section is easy. The information listed here usually includes name of the creditor, followed by when the account was reported or updated, the date of last activity, when the account was opened, how much credit was ever used, estimated monthly payment required to keep the account current, the balance and the historical status showing how many 30 days, 60 days and 90 daily payments were recorded.

Installment accounts

Unlike credit cards and revolving accounts, these trade lines do not revolve. They open with a fixed amount of balance which subsequently reduces with a set monthly payment until the balance reaches zero. Once the account is fully paid you cannot use the account again and it is closed. Examples of installment accounts include mostly all kinds of loans such as home loans, personal loans, automobile loans and student loan.

The formatting of these accounts is similar to the revolving accounts the only difference being that the monthly payment is fixed and does not change like a credit card. The only exception is probably that of a variable rate mortgage which anyway is listed in another section that deals with your mortgage accounts. The information will reflect a monthly payment obligation as well as outstanding balance at the end of each statement.

Mortgage accounts.

All loans that all the secured by a mortgage are listed here. This section will not only list the original mortgage account but also any refinance, as well as other home equity loans and lines of credit secured by a mortgage loan.

Inquiries

This will probably be the last section of the credit file. Inquiries result from someone requiring and requesting access to your credit report. An inquiry on your credit report means that somebody has requested to pull your credit file and view it and will stay on your credit file for a period of two years after which they fall off the record on their own.

There are two kinds of inquiries, soft and hard. Soft inquiries have no impact on the credit score well is hard inquiries to. However, this is something that is dealt with another section on the structure.

This should give you a basic understanding of the kind of information contained on your credit report and how to read it. As long as you remember that the data may be formatted and even labeled differently, you are a good place to understand what your credit report has to say about you and whether it’s the reflecting your financial status accurately. Reading and understanding your credit report will help you identify identify the errors and mistakes and the information that you can take off your credit report by filing a dispute.

Your Credit Report – Getting a Free Copy from www.annualcreditreport.com

This post will talk about using the website of www.annualcreditreport.com to get a free copy of your personal credit report once every 12 months from all 3 credit bureaus.

By now you are well aware of who can and cannot view your credit report. You also know that a credit reporting agency is under no obligation to tell you when negative or inaccurate information is being reported about you. This on its own is a good reason for you to review your credit report. Even if there is no imminent concern for you to see your report today, you haven’t seen them for a while or not at all, you should do it now.

Another excellent reason why you should not put off ordering your credit report is because you can get it for free. The FACT act has given every consumer this right. Another important time to check your credit report is before applying for a major loan or credit such as automobile loan or a mortgage home loan. You may be surprised at the information listed there. It is not uncommon for credit report to contain inaccurate data. You may be able to fix a lot of these before approaching the lender and thereby increasing your chances to qualify for the loan application. Even events like applying for a new job or even getting married call for a check of your free personal credit report.

As mentioned earlier, the FACT act allows you a free copy of your credit report once every 12 months from all the three national credit bureaus which, Equifax, Experian and TransUnion.

AnnualCreditReport.com

There is only one place where you can get your real and legitimate free copy of personal credit report. In fact the easiest and quickest way to get your free credit report is to order it online. Go directly to www.annualcreditreport.com which is the official website created in response to the FACT act. When it comes to searching for a free credit report on the Internet you will find various advertisers and websites that tell you that you can get your free credit report from them. In fact, the credit reporting agencies are a few of the foremost advertisers promising you a free credit report. But what these other websites are essentially doing is they are offering you a trial offer and trying to sell you other products along the way, credit monitoring being the most common. For a personal copy of your personal credit report as stipulated by the FACT act, go to www.annualcreditreport.com where you’ll find the that you can get your free credit report from all three major credit reporting agencies. This website has been created in association with all the three credit bureaus. You will have to access your credit report from each credit bureau one by one. Your personal credit report is not a compilation of reports so in all you can request three separate files. You can either do it all at the same time or stagger them over the year. If you have a spouse get his or her reports as well.

Directions for operating on AnnualCreditReport.com

From the time that this was written and the time that you you read it and visit www.Annualcreditreport.com, the directions listed here might be different than what you actually find on the website. But the steps of getting your free credit report at the www.annualcreditreport.com are something like this. The first step is to choose from a pulldown menu to indicate the state where you live. The next step is to click on the name of one of the three credit reporting agencies. You then have to answer some basic questions to identify yourself. You will have to answer some basic questions regarding your profile, including your name, address and Social Security number. You may be asked if your address has changed in the last two years. As long as you know that your latest address has been ported to the credit reporting agency you only have to type in your current address and answer no.

You will then need to answer a few security questions the answers to which only you are supposed to know. These questions could include certain account numbers etc. The individual credit reporting agency will then ask you what kind of credit report service you want. This is where you should be cautious. In spite of having been created to give consumers access to the free personal credit report, credit reporting agencies also offer their own services. Be careful to choose the option that indicates “report only.”

Any other offer that asks you whether you want your credit score or sign up for credit monitoring service or a consumer comparative rating analysis should be answered as ‘no’ unless of course you want to pay for these ancillary services as well. You can opt to buy your credit score here as as well, only be careful you what you were selecting his only your credit score and not a service that is going to be billed on a monthly basis. Also be aware at this point that the credit score that you might get will probably be a proprietary credit score of the credit reporting agency itself. If what you actually want is your fico credit score, then you are better off ordering it on the website of www.my fico.com.

It is a fact that the average consumer actually ends up spending money when they go looking for the credit report of the. The website of www.andallcreditreports.com, even though created in compliance with the requirement of the fair and accurate credit transactions act, the credit reporting agencies have included their own services and offers on the website as well. The average consumer can get confused while on this website and end up choosing something that would cost them money. If it is only your free credit report you want, then you should stick to ordering your report only. Any other service that you want can always be taken up later.

You might even be required to submit an open, valid credit card number before your order is completed with one of the credit reporting agencies. The explanation given is that in case you decide to place an order for an extra service such as your credit score or credit monitoring service your credit card will be charged.

This information was true during the time that this article was compiled. It may all have changed via. So exercise your own judgment and use the website prudently.

Illegal Access To Your Credit Report – Circumstances Prohibited By The Law

When Accessing Or Using Your Credit Report by 3rd Parties Is Prohibited By the Law

The FCRA, fair credit reporting act gives a permissible purpose to a lot of people. Its language is fairly broad-based. However, there are certain specific prohibitions against pulling your credit report in certain circumstances. There are two situations which explicitly prohibit the use of your credit report.

Your Credit Report Cannot be Used in Lawsuits

Your credit report cannot be requested or used by another party just because you are involved in a lawsuit. In other words, a bad credit rating cannot be used in an attempt to show the jury that your intentions are fraudulent or that they demonstrate an act of desperation of money and that’s the reason you are involved in the suit. This rule applies whether you are the party who is suing for you are the party who is being sued.

Your Credit Report Cannot Be Used to Satisfy Judgments

Your credit report cannot be used by a party to demonstrate that you are able to pay or that you have assets that can be taken to pay the damages if they have been awarded to an existing creditor. There is no permissible purpose for someone to simply pull your report to see your address, types of accounts and other personal financial information in a attempt to collect on his debt.

An important thing to remember here is that in case you of considering suing someone for fraudulently obtaining a copy of your credit report, you must file the action within two years of the incident have been taking place.

If you have not managed to do so, the exception to the two-year statute of limitations can only be brought about if you can demonstrate that you are legally entitled to a longer period of time because the person or business that pulled your credit report materially and willfully misrepresented what it was doing. For example your employer pulled your report lied to you regarding its purpose. This is where the assistance of a good lawyer will be required in order to bring forth the necessary’s proof and evidence to allow you to follow this procedure after two years have elapsed after the incident of someone fraudulently accessing your credit report.

When Employers Access Your Credit Report

Even though employers cannot discriminate based on age, sex or race, they are still allowed to review your credit report and refuse to hire you if they find your credit history problematic. It is generally thought that someone with stable financial situation makes for a better employee. Someone who does not have financial woes can concentrate more on his work and be a more focused and happy employee. However, the significance of a credit report is more for certain professions like banking and securities. Even an application for a professional license or independent contractor position may hinge on the information in your credit report. These professions include, attorney, insurance agent, loan officers and construction contractor.

It may seem strange that employers would want to review your credit report for the job. However, companies and employers are doing their best at all points of time to hire the kind of people who will be maximum return on their investment. If they are going to be paying salary to someone to do a job, they want the best possible candidate. In order to find just the right candidate for the job, employers uses extensive evaluation processes such as reference verification, credit checks and criminal background checks. The corporations also want to protect themselves from corporate theft, embezzlement and bribery. It is also believed that an employer should have an opportunity to use his own judgment regarding a potential employee’s honesty and integrity.

You should understand that in order to conduct a credit check, the employer must ask you for a written authorization to access your credit report. Your criminal and driving records are not included in your personal credit file. But read the written authorization carefully because it may also have wordings that allows your would-be employer to obtain copies of those records as well. Read the authorization carefully before you sign. You might also want to check if you are authorizing a one-time access to your credit report or will your employer be able to check your credit report in the future as well.

It is within your right to refuse someone from accessing your credit report or other background checks. However, an employer may refuse you a job unless you do comply with the request. But then again if you do know some problematic records on your credit file, you may have good reason for denying access. The best thing to do in this situation is to clean up your credit report as best as you can before you apply for a job. After all a good job opportunity is hard to pass up.

As a general know-how, you should know that the inquiry that results on your credit file owing to a potential employer pulling your credit report does not affect your credit score. This is a soft inquiry which has no impact on your credit rating because you are applying for a job not an extension of credit.

Basics Of Credit Reporting – Who Can See Your Credit Report

Now that you have understood certain basics of credit reporting such as what are credit bureaus and how they collect information to put in your credit report, you should be curious as to who is entitled to view the information on your credit report. Apart from you lot of people can access your financial information present in your credit file as long as they have what is defined by the Fair credit reporting act as a “permissible purpose”. In fact most of the preapproved offers for credit cards, loans and credit that you get in your mail come from the prescreening services offered by credit reporting agencies. Various lenders and creditors are able to assess your credit report and send you offers accordingly even though you have no business relationship with them.

What is permissible purpose

Permissible purpose as defined by fair credit reporting act is the legal reason and justification for someone to access your credit report. Various individuals, institutions and financial corporations have the so-called permissible purpose to access your credit report.

Common sources that request your credit report include prospective creditors, current creditors, future employers, current employers as well as marketeers who are trying to sell you more credit.

The latest trend in people who want to view your credit report and credit score is the insurance companies. More and more studies have shown a correlation between a consumer’s credit report and the risk that consumer will be to an insurance company. That is a direct relation between the credit score of a person and the number of claims that he makes on his insurance. As a result there is a growing trend among insurance providers such as homeowners and automobile insurers to review your report before issuing coverage.

However, many state regulators have put restrictions on how and when an insurance company can use your credit report against you. So if you feel that your insurance coverage was increased or denied due to your credit report, contact your state insurance commissioner.

 

Basics Of Credit Reporting – Meaning Of Your Credit Score

So what does the credit score mean exactly. The FICO credit score has a range from 350 to 850. The higher your credit score, the better it is for you as it is supposed to mean that you are more credit worthy. The scores measures your likelihood of fulfilling your commitment on a new or existing credit over the next two years. In order to calculate the risk, the credit scoring model is compared historically to other consumers whose scores range within a few points of your own.

In other words, for certain range of credit score, there is a certain rate of delinquency over the next two years that is ascertained by the fico credit score .

For example, if your credit score is 599 or below, FICO sees that there is greater than 50% chance that you’ll fall behind on existing or new obligation over the next 2 years. Or perhaps even filed for bankruptcy. This does not mean that you will definitely default. It means hat there is a greater chance that you won’t pay a future bills on time.

The following table represents the FICO credit score range and the rate of delinquency associated with it.

Credit Score Range Delinquency Rate
350 — 499 87%
500 — 549 71%
550 — 599 51%
600 — 649 31%
650 — 699 15%
700 — 749 5%
750 — 799 2%
800+ 1%

Remember that the most important part about your credit history is the current status of your accounts. So if you’re behind on any account that is not defaulted, which is usually 120 days after the payment was due, contact the creditor to find out if you can rehabilitate them and start bringing them current.

If they have already been charged off or passed for collection, you may want to consider another strategy such as negotiation. The odds are that the accounts that have already been charged off or given to a collection agency have already had a negative impact on your credit score. Settling these account and having the “settled” status show up on your credit report will not worry your credit score too much because the negative impact that have already happened.

Once you have paid off any negative account and start paying your creditor on time, your credit score will keep increasing every month that goes by.

Basics Of Credit Reporting – Where Does the Data Come From

Where does the credit report information comes from

Data about you and your credit transactions is collected at any given point of time. It usually begins when you first engage in a consumer to business financial transaction with a creditor and continues to be reported until you have satisfied the terms of the agreement. For example if it is a personal loan for five years, information regarding that account is reported from with time that you make the application. This usually gets done because the creditor wants to pull your existing credit file in order to assess your credit worthiness.

After that if the account is approved, the account is constantly reported to the credit bureaus along with the balance paid and the balance remaining till the time that you have completely paid off the loan. This means that all timely as well as late payments get reported on your credit file.

Once the terms of the agreement are over or the account is closed, fresh data is no longer reported to the credit bureaus. However, the account continues to remain on your report for seven more years. If the account has had a positive credit history throughout with no late payments, then it may stay on your credit report for a period of 10 years after being closed.

When an account is created, information gathered by the creditor which includes your payment history, home address and phone number are all reported to the credit reporting agencies. You cannot prevent data being reported to the credit bureaus by avoiding giving out your Social Security number. A creditor can just as easily report credit information using just your name and address.

The credit bureaus use several parameter to match the identity of a consumer to the one in their records. They match the name, address, phone number, Social Security number, any other kind of account history to ensure that the right data for the right person is attached to the right credit file. This is why withholding some information like the Social Security number will not prevent the information being reported to the credit bureaus. This is the reason why collection accounts, public records, bad checks can all appear on your credit port.

This is a sample list of the people who may be reporting information about you to the credit bureaus.

Common businesses that report information to the credit reporting agencies.

Credit card companies.

Apart from the major credit cards, even gas credit cards and department stores reported credit history as well.

Banks and lenders.

Any kind of loan taken from a bank or lender which includes automobile loans, home loans, lines of credit are all reported to the credit bureaus.

Student loans.

Both federally guaranteed and private student loan payment histories and delinquencies.

Collection agencies.

These are mostly private organizations reporting accounts assigned to them or purchased by them. These are loan accounts which the consumer has not made the stipulated and required payment on which include loans, credit cards, medical bills and utilities. You should understand that certain information like medical bills and utility bill payments do not get reported to credit bureaus but might get reported if you have not made a payment on them and they have been passed on to a collection agency.

Local, state and federal governments. These include tax lien’s, child-support and bankruptcy filings.

Insurance agencies

Information on an application for insurance is often reported as well as any deficiency balance you might owe to the insurer for overpayment of proceeds or under payment of premiums as well as obligations to third-party insurance companies in case of damage you caused were under or non-insured.

Landlords

Once again, landlords are not likely to report your payment to the credit bureaus because the expense involved in having the infrastructure to report to a credit bureau is not a feasible. However, unpaid rent but still find its way on your credit report if the landlord passes the account for collection or gets a judgement against you in the court. All judgments passed against the consumer for unpaid debt are reported to the credit bureaus as part of public records.

Utility companies

There is an effort to have utility payments reported on the credit file. Many credit experts feel that the credit worthiness of a consumer can also be represented by the regularity of the payments on his utility services such as electricity, phone etc. However, while some utility services have started reporting payment histories, majority of them will not be reported on your credit file unless there is an unpaid bill that has been passed on for collection. In such a case, it will be the collection agency who will report the unpaid debt to the credit reporting agency.

You might have understood that there is a legal distinction between a creditor and a collector although in some circumstances, the creditor himself might have a collection unit within his own company. A creditor, as defined by the fair credit reporting act is: any person who offers her extends credit creating a debt or to whom a debt is owed. This excludes collection agencies which are defined as “parties who receive an assignment or transfer debt in a default state solely for the purpose of facilitating collection of such debt for another”

You should understand that any information that you disclose about yourself which could even be facts like your parents date of birth, could be reported on your credit file. As long as you provided the information to the creditor who reports to the credit reporting agency, any information included on your account can be listed on your credit file.