Q. What is a credit report?
Q. How can I get a copy of my credit report?
Q. Do I have a right to know what's in my report?
Q. How often should I check my credit report?
Q. What can I do about inaccurate or incomplete information?
Q. What can I do if the Credit Reporting Agency (CRA) or information provider won't correct the information I dispute?
Q. Can my employer get my report?
Q. Can creditors, employers, or insurers get a report that contains medical information about me?
Q. What should I know about "investigative consumer reports"?
Q. How long can a Credit Reporting Agency (CRA) report negative information?
Q. Can anyone get a copy of my report?
Q. How can I stop a Credit Reporting Agency (CRA) from including me on lists for unsolicited credit and insurance offers?
Q. Do I have the right to sue for damages?
Q. Are there other consumer credit laws I should know about?
Q. Where should I report violations of the law?
Q. When is a loan considered to be in default?
Q. What does LIBOR mean?
Q. What does PRIME mean?
Q. Why does Nelnet use LIBOR?
Q. What is a credit report?
A. Credit reports include information such as the type of debts you have, current balances, payment performance, available credit,
and a record of credit inquiries in the past two years. Some negative credit information may remain on your credit report for up to 7 years; bankruptcy can remain for 10 years.
For more information, see Credit Reports, Credit Scoring, and Credit CriteriA.
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Q. How can I get a copy of my credit report?
A. You can request a copy of your credit report online, by phone,
or by mail from one of the three national credit bureaus, Equifax, TransUnion, or Experian (formerly TRW).
For detailed information about requesting a copy of your credit report and the contact information of the national credit bureaus;
contact the Credit Reporting Agencies (CRA)s listed in the Yellow Pages under "credit" or "credit rating and reporting."
Because more than one Credit Reporting Agency (CRA) may have a file on you,
call each until you locate all the agencies maintaining your file. The three major national credit bureaus are:
Equifax
800-685-1111
www.equifax.com
Experian
888-EXPERIAN (888-397-3742)
www.experian.com
Trans Union
800-916-8800
www.transunion.com
In addition, anyone who takes action against you in response to a report supplied by a Credit Reporting Agency (CRA)
- such as denying your application for credit, insurance, or employment - must give you the name, address,
and telephone number of the Credit Reporting Agency (CRA) that provided the report.
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Q. Do I have a right to know what's in my report?
A. Yes, if you ask for it. The Credit Reporting Agency (CRA) must tell you everything in your report,
including medical information, and in most cases, the sources of the information.
The Credit Reporting Agency (CRA) also must give you a list of everyone who has requested your report within the past year
- two years for employment related requests.
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Q. How often should I check my credit report?
A. It is a good idea to request a copy of your credit report annually to ensure that no errors exist
or to resolve errors that do exist. If you find any information that appears to be incorrect,
you should contact the credit reporting agency. Unfortunately, errors can occur in your credit report.
To learn more about how to check your report for errors, see Checking Your Credit
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Q. What can I do about inaccurate or incomplete information?
A. Under the new law, both the Credit Reporting Agency (CRA) and the information provider have responsibilities
for correcting inaccurate or incomplete information in your report. To protect all your rights under this law,
contact both the Credit Reporting Agency (CRA) and the information provider.
First, tell the Credit Reporting Agency (CRA) in writing what information you believe is inaccurate.
Credit Reporting Agencies (CRA)s must investigate the items in question - usually within 30 days - unless they consider your dispute frivolous.
They also must forward all relevant data you provide about the dispute to the information provider.
After the information provider receives notice of a dispute from the Credit Reporting Agency (CRA),
it must investigate, review all relevant information provided by the Credit Reporting Agency (CRA),
and report the results to the Credit Reporting Agency (CRA).
If the information provider finds the disputed information to be inaccurate,
it must notify all nationwide Credit Reporting Agencies (CRA)s so that they can correct this information in your file.
When the investigation is complete, the Credit Reporting Agency (CRA) must give you the written results and a
free copy of your report if the dispute results in a change. If an item is changed or removed,
the Credit Reporting Agency (CRA) cannot put the disputed information back in your file unless the information provider verifies
its accuracy and completeness, and the Credit Reporting Agency (CRA) gives you a written notice that includes the name,
address, and phone number of the provider.
Second, tell the creditor or other information provider in writing that you dispute an item.
Many providers specify an address for disputes. If the provider then reports the item to any Credit Reporting Agency (CRA),
it must include a notice of your dispute. In addition, if you are correct - that is, if the information is inaccurate -
the information provider may not use it again.
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Q. What can I do if the Credit Reporting Agency (CRA) or information provider won't correct the information I dispute?
A. An investigation may not resolve your dispute with the Credit Reporting Agency (CRA).
If that's the case, ask the Credit Reporting Agency (CRA) to include your statement of the dispute in your file and in future reports.
If you request, the Credit Reporting Agency (CRA) also will provide your statement to anyone who received a copy of the old
report in the recent past. There usually is a fee for this service. If you tell the information provider that you dispute an item,
a notice of your dispute must be included anytime the information provider reports the item to a Credit Reporting Agency (CRA).
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Q. Can my employer get my report?
A. Only if you say it's okay. A Credit Reporting Agency (CRA) may not supply information about you to your
employer, or to a prospective employer, without your consent.
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Q. Can creditors, employers, or insurers get a report that contains medical information about me?
A. Not without your approval.
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Q. What should I know about "investigative consumer reports"?
A. "Investigative consumer reports" are detailed reports that involve interviews with your neighbors or
acquaintances about your lifestyle, character, and reputation. They may be used in connection with insurance and employment
applications. You'll be notified in writing when a company orders such a report. The notice will explain your right to request
certain information about the report from the company you applied to. If your application is rejected,
you may get additional information from the Credit Reporting Agency (CRA).
However, the Credit Reporting Agency (CRA) does not have to reveal the sources of the information.
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Q. How long can a Credit Reporting Agency (CRA) report negative information?
A. Seven years. There are certain exceptions:
Information about criminal convictions may be reported without any time limitation.
Bankruptcy information may be reported for 10 years.
Information reported in response to an application for a job with a salary of more than $75,000 has no time limit.
Information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.
Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.
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Q. Can anyone get a copy of my report?
A. No. Only people with a legitimate business need, as recognized by the FCRA.
For example, a company is allowed to get your report if you apply for credit, insurance, employment, or to rent an apartment.
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Q. How can I stop a Credit Reporting Agency (CRA) from including me on lists for unsolicited credit and insurance offers?
A. Creditors and insurers may use Credit Reporting Agency (CRA) file information as a basis for sending you unsolicited offers.
These offers must include a toll-free number for you to call if you want to remove your name and address from lists for two years;
completing a form that the Credit Reporting Agency (CRA) provides for this purpose will keep your name off the lists permanently.
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Q. Do I have the right to sue for damages?
A. You may sue a Credit Reporting Agency (CRA), a user or - in some cases -
a provider of Credit Reporting Agency (CRA) data, in state or federal court for most violations of the FCRA.
If you win, the defendant will have to pay damages and reimburse you for attorney fees to the extent ordered by the court.
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Q. Are there other consumer credit laws I should know about?
A. Yes. If your credit application was denied, the Equal Credit Opportunity Act requires creditors to specify why -
if you ask. For example, the creditor must tell you whether you were denied because you have "no credit file"
with a Credit Reporting Agency (CRA) or because the Credit Reporting Agency (CRA) says you have "delinquent obligations."
The ECOA also requires creditors to consider additional information you might supply about your credit history.
You may want to find out why the creditor denied your application before you contact the Credit Reporting Agency (CRA).
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Q. Where should I report violations of the law?
A. Although the FTC can't act as your lawyer in private disputes, information about your experiences and
concerns is vital to the enforcement of the Fair Credit Reporting Act. Send your questions or complaints to:
Consumer Response Center - FCRA, Federal Trade Commission, Washington, DC 20580.
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Q. What does LIBOR mean?
A. LIBOR stands for London Interbank Offered Rate, the average interest rates paid on deposits of U.S.
dollars in the London market. LIBOR is the standard financial index used in the U.S. capital markets.
The current rate is listed daily in The Wall Street Journal and online at www.bloomberg.com (under "Interest Rates").
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Q. What does PRIME mean?
A. The Prime Rate is the interest rate charged by banks to their most creditworthy customers
(usually the most prominent and stable business customers). The rate is almost always the same amongst major banks.
Adjustments to the prime rate are made by banks at the same time; although, the prime rate does not adjust on any regular basis.
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Q. When is a loan considered to be in default?
A. Default occurs when you fail to meet the terms of the promissory note. This includes making late payments and failing to make payments.
There may be serious consequences to your credit and your ability to borrow funds in the future.
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Q. Why does Nelnet use LIBOR?
A. The interest rate we pay on the money we borrow to make our student loans is based on LIBOR.
By charging our borrowers an interest rate directly related to our cost of funds,
we will be able to provide more competitively priced loan programs over the long term.
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