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Lower interest rates usually translate into smaller monthly payments.

Nevertheless, newspapers, radio, TV, and the Internet are filled with ads for companies and services that promise to erase accurate negative information in your credit report in exchange for a fee. Ttime, a deliberate effort, and a plan to repay your bills will improve your credit as it’s detailed in your credit report.

The Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of the nation’s credit reporting companies. The Federal Trade Commission (FTC) enforces the FCRA with respect to these companies. Businesses that provide information about consumers to credit reporting companies and businesses that use credit reports also have responsibilities under the law.

Here are answers to some of the questions consumers have asked the FTC about consumer reports and credit reporting companies.

You have the right to know what’s in your report, but you have to ask for the information.

The credit reporting company must tell you everything in your report, and give you a list of everyone who has requested your report within the past year or the past two years if the requests were related to employment.

Credit reporting companies collect and sell four basic types of information:
Identification and employment information:
Your name, birth date, Social Security number, employer, and spouse’s name are noted routinely. The credit reporting company also may provide information about your employment history, home ownership, income, and previous address, if a creditor asks.

Payment history:
Your accounts with different creditors are listed, showing how much credit has been extended and whether you’ve paid on time. Related events, such as the referral of an overdue account to a collection agency, also may be noted.

Inquiries:
Credit reporting companies must maintain a record of all creditors who have asked for your credit history within the past year, and a record of individuals or businesses that have asked for your credit history for employment purposes for the past two years.

Public record information:
Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may appear in your report.

Under the Free File Disclosure Rule of the Fair and Accurate Credit Transactions Act (FACT Act), each of the nationwide credit reporting companies Equifax, Experian, and TransUnion is required to provide you with a free copy of your credit report once every 12 months, if you ask for it.

The three nationwide credit reporting companies are using one website, one toll-free telephone number, and one mailing address for consumers to order their free annual report. To order, go to annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to the Annual Credit Report Request Service. You can print it from ftc.gov/credit. Do not contact the three nationwide credit reporting companies individually. You may order your free annual reports from each of the credit reporting companies at the same time, or you can order order them one at a time. The law allows you to order one free copy from each of the nationwide credit reporting companies every 12 months.

Source: Federal Trade Commission