Your Past Affects Your Future

Your credit report does more than track your credit and how you pay your bills. It represents your financial profile, and it can affect more than just your ability to obtain additional credit.

Many lenders and employers check your credit rating as an indication of your personal as well as your financial character. Landlords, auto financing companies, insurance companies--a large number of entities can legally review your credit report before deciding to do business with you.

In most cases, they are simply verifying the information you have already provided. Keep in mind that only your name and address, or name and social security number, accompanied with a signature are required to pull your report. And since credit bureaus are not required to notify you when someone has requested a report, it's to your advantage to have your credit in sterling shape all of the time.

Keep up your good work.

The easiest way to keep your credit rating strong is to use your credit, pay your bills on time, and avoid reaching your limit. Always make at least the minimum payment required and complete all new applications carefully, using the same name each time.

Be wary of "quick" fixes for credit problems.

Financial information about late payments, foreclosures, and repossessions remains on your report for up to seven years; bankruptcy information, for up to ten years.

Certain companies advertise that they can "fix" a bad history, usually for a large sum. However, altering an accurate credit history is legally impossible.

Know the facts about credit bureaus.

Credit bureaus are independent agencies that collect credit information and distribute it to potential lenders. Although other agencies exist, the three national bureaus listed on the back page handle the largest share of inquiries and reports.

A number of laws regulate credit bureaus and protect your rights.

For more information, contact your regional Federal Trade Commission or write to: