Almost everyone has been the subject of a credit report review at some point in their lives. Many employers will perform credit report reviews before hiring a person to work for them and creditors review the person’s credit history before deciding whether to give that person a loan. Because credit report reviews are such an important part of life today, it is important for people to know what type of information is typically searched during the credit report review.
What Is Found In A Credit Report?
A general credit report review will show the searcher the person’s name, prior addresses, and any loans that they obtained over a certain period of years. The searcher will also see the person’s bill payment history, how much credit they have, and how much of that credit has been used. Some credit report reviews will contain the person’s actual credit score, but these reports are only used in a few specific instances as most employers and landlords are not interested in this information.
The biggest difference between credit report reviews is the amount of information that is contained within each different type of review. A great deal of a person’s financial history is not allowed to be disclosed by a credit report review, only enough information for the searcher to be able to determine whether the person will be a credit risk in the future. Many people believe that a great deal more information is included in the review that what will actually be available for the searcher to see.
What Rights Do I Have With Credit Reports?
Credit report reviews can only be conducted after the person that is the subject of the search has given their permission to allow the search. In many states, it is illegal to conduct a credit search without the permission of the subject. This is why many employers will ask job applicants to sign a release saying that they consent to the credit report review.
There is a statute of limitations that is placed on the information that can be accessed by a credit report review. Most of the negative financial information that is included in the credit report will expire and be removed from the credit report exactly 7 years from the date of the information being added to the report. The exception to this rule is personal bankruptcies, which are allowed to remain on the credit report for 10 years before expiring.
Limiting the amount of negative information is very important for your financial future. Some employers may not be able to hire you for an employment position if there is a large amount of negative information on your credit report. Having a great deal of negative information on your credit report can also cause you to be denied a promotion to a job with more responsibilities or even for an apartment to live in if the person reviewing your credit report determines that you are too big of a risk to be trusted.