Credit Scores And Credit Reports Research
- 1 CREDIT SCORES AND CREDIT REPORTS - RESEARCH
- 1.1 LINKS TO EXPLORE
- 1.2 Power Map
- 1.3 Market Overview
- 1.4 Political Overview
- 1.5 Organizing Landscape
- 1.6 Legal Regulatory Landscape
- 1.7 FAQs:
- 1.8 Glossary
CREDIT SCORES AND CREDIT REPORTS - RESEARCH
LINKS TO EXPLORE
- Here are the phrases used in loan applications by people most likely to pay them back: debt-free, lower interest rate, after-tax, minimum payment, graduate.
- And here are the phrases used by those least likely to pay back their loans: God, promise, will pay, thank you, hospital.
[Cross-ownership, Political Connections, Investors, Etc.]
- Generally payday loans, rent payments, and utility payments are not on credit reports.
- Most credit scores are generated by an algorithm developed, owned, and maintained by FICO, a for-profit company.
- The Big Three CRAs also came together to create their own set of credit scores called VantageScore.
Policy Arguments/Rationale In Support:
Policy Arguments/Rationale Against:
- CFPB Page 
Disputing your credit report:
- If you see something on your credit report that isn’t right or that is inconsistent (or you just want to annoy them or you want to get something off your credit report that shouldn’t be in there because you should not have had to take out debt to pay for groceries, for example), you should dispute it with our CREDIT REPORT DISPUTE TOOL 
- You have a right to have inaccuracies corrected under the Fair Credit Reporting Act (FCRA). But CRAs don’t want to spend the time correcting things they're supposed to and they see creditors as their customers, so they are unlikely to make it easy for you. Our tool will help you take them on, but you can also rely on the support of other debtors and allies in fighting and winning your disputes.
- Sometimes even after you’ve had something corrected or taken off your credit report, it will go back to being incorrect. Make sure to keep checking your credit report and to dispute it again if they put it back on!
- You should also report inaccuracies and failures to correct them to the CFPB and/or the FTC (they share with each other).
- Watch out for Scams! There are a variety of “credit repair” companies out there who claim to be able to add some points to your credit score or get some trade lines off of your credit report. These are mostly scams. They are charging for things that you could do yourself or with the help of other debtors for free. And often they don’t even do what they say they will.
- There is no magic bullet to “repairing” your credit. Don’t let anybody sell you otherwise.
Legal Regulatory Landscape
Current Regs And Laws:
Current Federal Laws:
FCRA (Cair Credit Reporting Act): Under the Fair Credit Reporting Act (FCRA), you have a right to one free credit report per year from each of the Big Three CRAs. To comply with this requirement the Big Three CRAs put together annualcreditreport.com (not “freecreditreport.com”—that’s a site run by Experian that could convert your free credit report into a paid service and/or barrage you with offers from credit card companies). You can also mail your request in with a form.
- You do not have a right to a free credit score. Remember, you have multiple credit scores, and any that you see might not be the one creditors are relying on.
- You also have a right to an additional copy of your credit report if:
- You are unemployed and will be applying for a job in the next 60 days.
- You receive public assistance.
- You believe there is an inaccuracy on your credit report due to fraud/identity theft.
- You have been denied credit or a job or anything else because of your credit in the past 60 days.
- To get your credit report for one of these reasons, you have to contact the CRAs individually: Transunion, Experian, Equifax.
ECOA (Equal Credit Opportunity Act): The Equal Credit Opportunity Act (Ecoa) Prohibits Discrimination In Consumer Lending By Race Or Gender Or Other Protected Classes. It Does Not Prohibit Discriminating Against Poor People Though. That Always Seems To Be Legal.
TILA (Truth In Lending Act): The Truth In Lending Act (Tila) Is A Big Bill That Requires Lenders To Disclose Certain Facts About Loans, Creates A Standard Way To Calculate Interest Rates, And Regulates Other Aspects Of The Lending System.
FCTA (Federal Trade Commission Act): The Federal Trade Commission Act (Ftca) Contains A Provision Prohibiting “Unfair And Deceptive Acts And Practices” (Commonly Called “Udap” Or “Consumer Fraud”). This Is The Baseline Protection Against Creditors Misleading You Or Engaging In Other Shady Behavior.
CFPA (Consumer Financial Protection Act): The Consumer Financial Protection Act (CFPA) Added Protections To The FTCA.
Bankruptcy: Bankruptcy Laws Are Federal Laws.
Current State Laws:
Proposed Laws And Regs:
FICO: a company that creates credit scores.
Tradeline: information about a particular debt on a credit report. Each debt a debtor has has its own tradeline on a credit report.