What Mom And Dad Or Your Graduate School Business Prof Never Told You About The Fair Credit Reporting Act

For those who watch their credit reports and who have built up credit profiles with high FICO scores there are certain facts which we assume are irrefutable. One of those facts is that under the Fair Credit Reporting Act negative or derogatory entries must be removed after 7 years plus 180 days from the date of last activity with the exception of bankruptcies and judgments.  I spent quite a bit of time defining what the date of last activity is in a recent blog so take a look. Well guess what? What we assume is one the legal protections we have under the FCRA is only partially accurate and true.

What I am going to blog about next week will blow your minds. When you apply for credit lets say at a retail establishment such as Sears or Macys fo instance would you be surprised if I told you that businesses look at more than just your 3 credit reports and do not disclose that fact to you? Would you be surprised to learn that some businesses look at records that go back as much as 30 years to make credit determinations?

Stay tuned for a fascinating saga next week. Have a great weekend.