Understanding Your Credit Report

1. If there is incorrect information on my credit report, I need to hire an attorney to fix it.
    Yes
    No
   
   Your Answer:
   Correct Answer:No
   Reason:
   According to The Fair Credit Reporting Act, whose purpose is to insure that information contained in a credit report is accurate, consumers have the right to complete and accurate information in their credit file. A consumer can dispute any incomplete, inaccurate or outdated information at no charge to them.

2. Anyone who has my authorization and a permissible purpose can obtain a copy of my credit report.
    Yes
    No
   
   Your Answer:
   Correct Answer:Yes
   Reason:
   Almost any organization or business can purchase a copy of your credit report as long as they have a permissible purpose. Permissible purpose means there is a valid reason for someone to request a copy of your credit report.

3. Consumer reporting agencies make decisions about how much money an individual can borrow.
    Yes
    No
   
   Your Answer:
   Correct Answer:No
   Reason:
   Consumer reporting agencies do not make lending decisions - they do not approve or reject credit, they only report it.

4. It is my responsibility to make sure my credit report is accurate and up to date.
    Yes
    No
   
   Your Answer:
   Correct Answer:Yes
   Reason:
   It is the responsibility and right of the consumer to review their credit report to ensure completeness and accuracy. The Fair Credit Reporting Act provides a method by which the consumer can dispute inaccuracies.

5. To maintain a good credit history I need to pay my bills on time.
    Yes
    No
   
   Your Answer:
   Correct Answer:Yes
   Reason:
   Delinquent payments and collections can have major negative impact on your credit history.

6. The 3 C's creditors consider when extending credit are capacity, character and collateral.
    Yes
    No
   
   Your Answer:
   Correct Answer:Yes
   Reason:
   When a consumer applies for credit, the lender wants to know whether the consumer has the ability and the willingness to repay the debt. The creditor will consider the consumer's capacity to repay the loan. Questions will be asked to determine the consumer's character, honesty and reliability to pay debts. The creditor is interested in determining what assets, or collateral, stand behind the consumer's commitment to repay the debt.

7. Most information, including negative status, may stay on my credit report for up to 10 years.
    Yes
    No
   
   Your Answer:
   Correct Answer:Yes
   Reason:
   Negative information, such as bad payment history, suits or judgments will remain on a credit report seven years from the date of last activity. Bankruptcy will remain on a credit report for up to ten years.

8. If I can't make my payments on time, I should buy an answering machine and screen calls.
    Yes
    No
   
   Your Answer:
   Correct Answer:No
   Reason:
   It is your responsibility as a consumer to pay your bills on time. However, if for some reason you are unable to meet your responsibilities, contact your creditors before your payments become delinquent.

9. My credit report contains information on where I attended college, how much money I make, my children's names, and my last place of employment.
    Yes
    No
   
   Your Answer:
   Correct Answer:No
   Reason:
   Credit reports contain only creditor reported information and public records. Personal information such as employer, salary, children’s names and colleges attended will not be found on a credit report.

10. The only time that a creditor reports to a consumer reporting agency is when I apply for credit.
     Yes
     No
    
    Your Answer:
    Correct Answer:No
    Reason:
    Creditors make regular reports (generally monthly) to one or more of the consumer reporting agencies. This report will include information such as a consumer's name and personal identification information as well as account numbers, loan amounts, interest rates, loan terms, payment amounts, and past due payments.