Some Credit Information You May Not Know
Below is a MRR and PLR article in category Finance -> subcategory Credit.
Essential Credit Information You Might Not Know
Summary
Discover some lesser-known facts about credit that could benefit you.Rights to Free Credit Reports
Federal law grants you a free credit report if a company takes adverse action against you, like denying credit, insurance, or employment. You must request your report within 60 days of receiving the notice, which will include the name, address, and phone number of the consumer reporting agency. Additionally, you’re entitled to one free report a year if you’re unemployed and job hunting within 60 days, receiving welfare, or if your report is inaccurate due to fraud. Otherwise, a consumer reporting agency may charge up to $9.50 for additional copies.
To purchase your report, contact:
- Equifax: 1-800-685-1111
- Experian: 1-888-EXPERIAN (1-888-397-3742)
- TransUnion: 1-800-916-8800
Residents in Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey, and Vermont have free access to their credit reports under state law. You can also request that only the last four digits of your Social Security number appear on your credit reports.
Establishing a Credit History
If you’ve been denied a loan or credit card for lacking a credit history, consider establishing one. Start by applying for a small line of credit from your bank or a local department store credit card. Provide your best financial references and ensure regular payments. Confirm that the creditor reports your credit history to a credit bureau.
If Your Spouse Passes Away
Under the Equal Credit Opportunity Act (ECOA), a creditor cannot automatically close or change the terms of a joint account solely due to your spouse’s death. They may request you to update your application or reapply, especially if the account relied on your spouse’s income. You will receive a written response within 30 days of reapplying, and can continue using your account without restrictions during this period. If denied, you’ll get specific reasons or be informed of your right to receive this information.
These protections also apply when you retire, turn 62 or older, or change your name or marital status.
Types of Accounts
Understanding your credit accounts is crucial, especially if your spouse dies. There are two types: individual and joint. Both can have authorized users.
- Individual Account: Opened in one person’s name and based solely on their income and assets. Consider opening individual accounts in your name to safeguard your credit status. Ask creditors to consider your credit history alongside your spouse’s, especially if you manage payments on accounts in their name.
- Joint Account: Opened in two names, often husband and wife, based on either or both parties’ income and assets. Both parties are responsible for any debt.
Account Users
You can authorize others to use your individual account. For accounts opened after June 1, 1977, if your spouse is an authorized user, the creditor must report the credit history in both names. This can also apply to any other authorized user.
If You're Denied Credit
The ECOA doesn’t guarantee credit approval, but it guarantees your right to know the reason for denial. Errors or incomplete evaluations may be the cause, so you can ask the creditor to reassess your application. If you suspect discrimination, file a complaint with the relevant federal agency, including copies of supporting documents. You may also consult an attorney, as you have the right to sue for ECOA violations.
You can find the original non-AI version of this article here: Some Credit Information You May Not Know.
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