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How frequently should I monitor my credit report?
The information contained in a credit report is constantly
changing. Most creditors update information on a monthly basis. Many times
payments and payoffs are not reflected when a particular creditor submits an
update through magnetic media at a set time. Different creditors send in
information at different times of the month. Experts say it is a good idea to
check your credit report at least once a month and to review all activity such
as inquiries on a regular basis. Over time you can review the information on
the report and determine when the best time during the month to review it is.
Keep in mind that you may review your report on the 24th of the month, but
activity or inquiries may have occurred on the 26th. If for example there was
fraudulent activity or an unauthorized activity regarding your credit, even if
you reviewed your history the same time the next month, almost 30 days would
have passed. This is why it is important to monitor your credit history on a
regular basis.
How long does information remain on my credit report?
The type of information and the time this information remains
a part of your credit file varies. The Fair Credit Reporting Act (FCRA) governs
how long certain information remains on your credit report. Generally speaking,
the following guidelines relate to the retention of consumer credit
information:
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Most consumer credit information is retained and included in credit bureaus for
about 10 years.
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Negative or derogative accounts can be maintained for up to 7 years from the
date of original default. (For example, date of default could be considered the
date of last activity or last payment made.)
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Bankruptcies such as Chapter 7, 11 or 13 will be maintained 10 years from the
filing date of the bankruptcy petition. Chapter 13 bankruptcy petitions will
appear on audit reports.
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Public records such as judgments, lawsuit liens and lawsuits usually are 7
years from the filing date. Some tax records such as tax liens may stay
indefinitely unless they are paid.
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Other accounts such as closed or inactive accounts will usually remain for 10
years from the date of last reported activity.
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Address information will remain as long as there is an account which is
reporting your address.
There are many variations as to how long certain information
remains on your credit report. This underscores the importance of regularly
monitoring your report, which allows you to correct information which might be
outdated by contacting creditors or disputing the inaccurate information.
Where does the information come from?
Credit bureaus obtain information from various entities who
report information on account history, address information and payments. These
include banks, finance companies, credit and issuers and other companies who
extend credit to consumers. Credit bureaus also obtain collection account
information from collection agencies and public records from court filings and
documents. The same entities that extend credit use the credit reporting system
to obtain credit information in making decisions to extend credit. It is
important to monitor your credit report to make sure creditors are forwarding
up to date and accurate credit information. You may review your credit report
and find that a creditor is not reporting an important or major account.
Reviewing your credit report will allow you to contact creditors who through
mistake or inadvertence are not reporting these important accounts.
Identity theft and credit fraud, the basics
Identity theft and credit fraud are growing problems.
Identity theft involves a third party who obtains the personal information and
identification of an otherwise creditworthy person and then surriptitiosly
obtains credit or uses credit in the name of that person if a fraudulent
manner. This usually involves running up large bills and not paying the
creditors. Identity thieves also intercept and redirect mail and credit
accounts to other locations and phony addresses for fraudulent purposes.
Checking your credit report can help thwart or prevent identity fraud because
new accounts which are opened fraudulently will usually disclose a fraudulent
billing address. Further, unauthorized inquiries or fraudulent accounts will be
disclosed by reviewing your credit report. There are many other types of credit
fraud which can be detected by reviewing your credit report. This includes
checking account balance information and payment histories.
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