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Understanding Specialty Consumer Reports

 

Specialty Consumer Reports

Almost everyone knows they have a credit report.  Did you know that you might have other consumer reports, too?  Often called specialty consumer reports, these firms collect and report information on your transactions with a wide range of businesses.  Reports may be compiled on your history of:

Banking
Renting
Utility payments
Phone bill payments
Car, homeowners, and renters insurance claims
Payday loans
Medical records and payments
Employment
Criminal activities

You may not even know you have these reports until you are denied a product, service, or a job.  For example, your application for a savings account at a bank or credit union may be denied because you have a negative banking history report.  This generally means you have bounced checks, owe fees to a bank or credit union, or have been engaged in or suspected of fraud with an account at a bank or credit union.

You can get free copies of some of these reports every 12 months just like you can get your reports from Equifax, Experian, and TransUnion through annualcreditreport.com.

It’s important to note that in some cases, you will not have a report because:

There is no negative information to report on you.
The company you checked is not collecting information on you, but another company may be.

For example, there are four companies that collect and report information on your history with accounts:

ChexSystems
Early Warning Services
TeleCheck Services
Certegy Check Services

If you have had trouble in the past with an account or have been the victim of identity theft and financial fraud, you may want to consider checking to see if you have a report before applying for a savings or checking account.

The Consumer Financial Protection Bureau maintains a list of these specialty consumer-reporting companies.  Consult this list for more information on the specialty consumer reporting companies that exist and how to contact them.

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What You Can Do Right Now

Information is great. But taking small steps now can lead to big changes.
  • Today
  • Are you planning on opening a checking account, renting an apartment, or applying for a job? If you suspect one of these reports has negative information about you, request your free annual report.
  • Use the list from the Consumer Financial Protection Bureau to help you figure out which companies to contact.
  • Next Week
  • Because many business also use credit reports, get and review your credit report.
  • If having good credit is important to you, make a plan to improve it. This is important if you want to make a big purchase or apply for a job that will heavily consider your credit report.
  • During the Next Few Months
  • Keeping working your plan. Building or rebuilding credit takes time. Stay current with all of your bills, pay down debt balances, and make sure the amount of credit you are using is a small percentage of your available credit limit.
  • Be sure you understand how to keep good credit once you build or improve it. Don’t let a small mistake undo your hard work.
  • Get some support. Change takes time and having some tips, tools, and people in your corner may help keep you motivated!