Understanding Credit History and Credit Reports
By Brenda Paganelli, Regional Director, National Student Loan Program

Do your students understand how their credit history can affect their future lifestyle? That knowledge may prompt them to make better credit and repayment decisions now. Following is information you may want to share.

There are three major national credit bureaus: Equifax, Experian, and TransUnion. Each collects two types of credit information.

Most credit information remains on a credit report for several years. Damaging activity can appear for up to seven years regardless of whether the account is closed or inactive. Bankruptcies may stay on the report for up to ten years.

Only those with the legal right to a person’s credit history can view the reports issued by these credit bureaus. This includes creditors, banks, potential employers, insurance companies, and landlords.

Getting a Copy of the Report
Students can get a free copy of their credit report each year from the Annual Credit Report Request Service by calling 877-322-8228. This is the only authorized source for free reports.

For a small fee, students can also request reports from all three national credit reporting companies at the same time or stagger the requests throughout the year. (Access to the free reports is being introduced gradually across the country from west to east. Everyone will be eligible by September 1.)

Students can also get a free report within 60 days of being turned down for credit, a job, or insurance—or if they’re unemployed and looking for work, have been the victim of fraud or identity theft, or are on welfare. They should contact the credit reporting agencies directly in these situations.

Students can request a report by contacting Equifax (800-685-1111 or www.equifax.com), Experian (888-397-3742 or www.experian.com), or TransUnion (800-888-4213 or www.transunion.com).

Submitted by:
Teresa Boldt, National Student Loan Program