There are three major credit bureaus: Equifax, Experian,
Trans Union.
The Student Loan Service Center reports all loans to
two national credit bureaus: Equifax and Trans Union.
Once your loan goes into repayment you will be building
either a positive or negative credit history. Federal
law specifies how long negative information remains
on your credit report. This includes late payments,
accounts that the credit grantor turned over to a collection
agency and judgments filed against you in court -- even
if you later paid the account in full. Most negative
information must be erased after seven years.
Equal Credit Opportunity Act
This act was enacted to make sure women receive the
same treatment from creditors as men. You have the right
to obtain a credit card in your own name if you are
a married woman and to have child support and alimony
counted as income at your request. Creditors may not
ask you about birth control or child-bearing plans.
They are required to tell you their reasons if they
deny you credit.
Fair Credit Billing Act
1. You have the right to file a written complaint within
60 days after the bill you question was mailed to you.
2. The creditor must acknowledge receipt of your complaint
within 30 days and reach a settlement with you within
90 days.
3. Until the matter is resolved, the creditor may not
collect the disputed amount from you, nor may the creditor
report any negative information about the dispute to
credit reporting agencies.
Fair Credit Reporting Act
Offers legal protection of consumer privacy by:
1. Limiting the purposes for which a consumer report
may be used.
2. Giving the consumer the right to receive full disclosure
of everything in the file.
3. Limiting the length of time which adverse information
may be reported.
4. Informing the consumer when a report has contributed
to a denial of credit.
5. Providing the consumer with an opportunity to dispute
information.
6. Limiting the access of governmental agencies.
7. Providing civil and criminal liability for violations
of the law.
Checking Your Credit
You may obtain a free credit report if you have been
denied credit within the past 60 days, or you are unemployed
and intend to apply for employment within 60 days, or
you are a recipient of public welfare assistance, or
you have reason to believe the file contains inaccurate
information due to fraud. You can call, write, or go
to the website to obtain a credit report.
When Your Credit Has Been Denied
1. Obtain a free copy of your credit report to see
what negative information is being reported.
2. Request an explanation of the denial of credit from
the company that denied you credit.
3. If you spot an error, contact that reporting agency
and discuss the error with them. If there is an error,
the agency should make the correction. If the agency
says it was not a reporting error and you disagree with
that decision, you should file a consumer dispute.
4. To file a consumer dispute, contact your local credit
bureau. They will send you a form to complete. Based
on that information, they will send an official Consumer
Dispute Verification form to the reporting agency. That
agency must respond within 5 days or the negative information
will be deleted. Your local credit bureau will forward
the change in your credit reporting to the other credit
bureaus.
5. If the reporting agency is reporting correctly, but
you feel there were mitigating circumstances, you may
have an explanation put on your credit report. Call
your local credit bureau to submit an explanation.
