A common public misperception is that these bureaus are government agencies or extensions of the federal government.In fact, the bureaus are private, for-profit companies that gather your credit history information and sell it to businesses that are legally permitted to see your report.The businesses allowed to request your credit report include creditors such as banks and credit unions, credit card companies, mortgage lenders, and retail stores, in addition to employers, landlords, and insurance companies. A consumer credit report is a document prepared by the credit bureaus that provides the following: Personal Information, Credit History, Public Records (bankruptcy, judgments, etc.), and Inquiries.Other than inquiries, all of the above information remains on your credit report for seven to ten years.This information is documented and sold to current and/or potential lenders, employers, landlords, and insurance agents for the purpose of providing the consumer’s payment history and credit worthiness. Based upon the Fair Credit Reporting Act, credit grantors are permitted to review your credit report to objectively determine your credit worthiness.There are 190 million credit active people in the United States who have a credit file, meaning they have applied for credit in some form since they were eighteen.As consumers pay their bills, most lenders report the payment and account information to at least one of the three credit bureaus. However, a recent study shows that up to 79% of all credit reports
contain inaccuracies.

While a bankruptcy, judgment, or late payments can lower your credit score pretty quickly, improving your score takes time.It is best if you check your credit scores and credit reports at least every 6-12 months, especially prior to applying for a loan.This way, you have no surprises when a potential lender views your report. You’ll have time to work on improving any inaccuracies on your credit report and work to increase your credit score, if needed.

Q: How long do bankruptcies stay on credit reports?
A: Declaring bankruptcy makes a long lasting impact on credit reports. When a Chapter 7 bankruptcy is filed, most, if not all, debts are voided. This type of bankruptcy can stay on your report for up to 10 years. However, Chapter 13 bankruptcy, in which the debtor must repay some or all of the debt through a court-approved payment plan, remains on your credit report for 7 years.

Q: Can an employer get a copy of your credit report without your permission?
A: The Fair Credit Reporting Act (FCRA) restricts access to your credit file for your privacy. A prospective employer can only get a copy of your credit report if you give your permission.