Credit Reports and Your Questions

Our economy is based on credit.

Most people finance their homes with mortgages and pay for their cars with loans. Young people often obtain loans to pay for college. And of course, countless people routinely make purchases with credit cards.

We can't expect to receive credit as a matter of course, however. We must apply for it. And just as you would be hesitant to lend money to a stranger, no bank, retailer, or finance company will grant you credit without knowing something about you.

It used to be that a retailer or bank would have to call each creditor you listed on an application form before ether would decide to extend you credit. Today, they rely on credit reports, so it's important for you to know what's on yours.

What is a Credit Report?

A credit report is a record of your credit activities. It lists any credit card accounts or loans you may have, the balances and how regularly you make your payments. It also shows if any action has been taken against you because of unpaid bills.

Where do Credit Reports come from?

In most cases, from credit bureaus (Also called credit-reporting companies), which collect information about our credit activities and store it in a giant databases. the credit bureaus charge a fee for supplying information.

Who is allowed to see my Credit Report?

Credit bureaus can provide information only to the following requestors, 1) creditors who are considering granting or have granted you credit; 2) employees considering  you for employment, promotion, reassignment, or retention; 3) insurers considering you for an insurance policy or reviewing an existing policy; 4) government agencies reviewing your financial status in connection with issuing you certain licenses or government benefits; and 5) anyone else with a legitimate business reason for needing the information (such as a potential landlord). Credit bureaus also furnish reports if so required by court orders or federal   jury subpoenas and they will also issue your report to a third party if you give them written instructions to do so.

What type of information is on my Credit Report?

There are usually four types of information:

1. Identifying Information: Your name (including if you're a Sr., Jr. or a III), nicknames, current and previous addresses, social security number, year of birth, current and previous employers, and if applicable, your spouse's name.
2. Credit Information: The accounts your have with banks, retailers, credit-card issuers, and other lenders. The accounts are listed by type of loan (mortgage, student loan, revolving credit), the date you opened the account, your credit limit or the loan amount, any co-signers of the loan and your payment pattern over the past two years.
3. Public Recording Information: State and county court records on bankruptcy, tax lien or monetary judgements. ( Some credit reporting companies list non-monetary judgements as well).
4. Inquires: The names of those who have obtained copies of your credit reports within the last six months (two years for employment purposes).

Where do the credit-reporting companies get their information?

From parties that have previously extended credit to you, such as the department store that issued you a credit card or the bank that issued you a personal loan.

Why should I obtain a copy of my Credit Report?

To avoid any unwelcome surprises. It's especially important to see a copy of your credit report before you apply for , say, a car loan, a mortgage or a credit card. Errors in credit reports are not uncommon. Keep in mid, however, that they are not part of a conspiracy against you; they're simply the result of human error.

How do errors in reports happen?

Think about how often a misspelling of your name or a mistake in your street address shows up on a piece of your mail. Then imagine the possibility for error in a report that contains many more points of information about you. Cases of mistaken identity, out-of-date information and outright inaccuracies can easily occur.

Food Insurance Information

Flood insurance is required pursuant to the Flood Disaster Protection Act of 1973 and The National Flood Insurance Reform Act of 1994:

• If it is determined prior to closing that this property is located in a special flood hazard boundary area designated by the Flood Insurance Administration of the Department of Housing and Urban Development, the lender will advise you that flood insurance will be required, or

• If it is determined after closing that flood insurance is required  on this property, the lender and/or its assignees will obtain a flood insurance policy for you. You will be advised by the service that flood insurance has been required and that you will be responsible for payment.