If you have experienced credit issues or are worried about your financial position, the best Chicago credit repair advisors will ensure you are fully informed about what is and isn’t legal.
There are several regulations and requirements related to credit scoring, including the Illinois Employee Credit Privacy Act.
What Information Is Included in My Credit File?
Credit reports contain information about borrowing, such as credit card debt, mortgages, or personal loans. They detail missed payments or defaults and legal action taken to pursue outstanding debts.
Banks and other organizations, such as insurers, use that information to decide whether to lend or offer a product. If you have an adverse payment history or other defaults, it may be harder to take out a mortgage, or you might be turned down for a credit card.
Payday loans are a type of borrowing that may lower your overall credit score. How long do payday loans stay on your credit file? Normally, a payday loan will remain visible on your report for seven years.
Consumer Rights Related to Credit Repair in Illinois
The Fair Credit Reporting Act is a law that protects individuals from having potentially harmful information displayed on their credit reports. The Act does not apply to every organization, such as a law enforcement agency, but it does mean that credit reporting information is not publicly accessible.
Further, Illinois consumer protection laws prohibit:
- Anybody from providing damaging information to a credit reporting agency
- Individuals from sharing details with a collection agency
- Co-signers to a credit agreement taking collection action without consent
Companies, employers, and organizations can request access to your credit report. Still, they must have a legitimate reason to need the information, such as assessing your eligibility for insurance or credit.
Generally, credit reports exclude unfavorable information after seven years, with some exceptions.
Exceptions to Credit Reporting Time Limits
Bankruptcy reports remain on your credit report for ten years. Any lawsuit or court judgment against you is normally reportable for seven years or potentially longer, depending on the relevant statute of limitations.
There are other exceptions for individuals applying for employment positions where their credit history is of genuine importance. For example, a bank or collection agency may be permitted to order a copy of an applicant’s credit history if they will have access to cash of $2,500 or above.
If you are planning to apply for a role where your credit file may be relevant or are worried about the content of your credit record, you can request a copy of your report at any time–this can be a useful way to examine its contents or identify any potential errors. However, there are few scenarios in which an employer would be legally able to order a copy of your credit report. It may be unlawful for a prospective employer to inquire about your credit if they are not exempted according to the Employee Credit Privacy Act.
We recommend contacting The Phenix Group at any time if you are interested in repairing your credit score, believe your credit file will affect future employment opportunities, or feel that an employer has breached the Act. Reach out for a free consultation today!