Privacy of Credit Reports

Having some big corporate snoop compiling information about how you pay your bills could be disconcerting. So does this mean that our credit reports are open for anyone to see? Will our neighbors and the whole block know that you've defaulted on your credit card and are having a hard time climbing out of debt? Thanks to the Fair Trade Reporting Act, our credit reports are still protected and my not be used against us in a grossly unfair manner.

Only those who have a “legitimate business need” may have access on our credit reports. These include banks and other companies with which you have a credit account, insurance companies, landlords, child support enforcement agencies, and those which are reviewing your application for a government license or benefit.

Any government agency can also access our credit reports but the information they are entitled to are usually limited to name, address, former addresses, and current and former employers. Our employers and potential employers may also see our credit reports but are written consent from you is required before they can do so.

There are also certain information which are not included in our credit reports such as medical information, bankruptcy notice that is more than 10 years old, and debts that are more than seven years old. Employers who are granted access to credit reports are also not given information on age, race, and marital status. In California, records of arrest and misdemeanor are removed from credit reports after seven years but federal law requires that criminal conviction records are to be included indefinitely.