This chapter just scratches the surface on some of the consumer-reporting companies out there, and what they do. By now, you should understand that organizations are constantly inquiring about you, reporting on you, and double checking your files. Based on what they find, services could cost you thousands of unnecessary dollars every year! Keeping an eye on your credit is essential. If you are unaware of negative information, it can be devastating. Yes, employers, insurers, and lenders (and who knows who else) should notify you if they take adverse action based on information in your consumer files. However, it might be too late. Imagine being left without homeowner's insurance or auto insurance while you correct errors. Perhaps you won't be uncovered, but you might have to spend a lot more in premiums while you fix your reports.

Lenders and others have a right to know something about you. Otherwise, how could they decide whether or not to lend to you? The appropriate extent of their knowledge and how they use it is what's up for debate. However, most consumers benefit by having some information-sharing take place. If everybody had to pay equal rates, the more-responsible borrowers (like you) would have to pay extra to cover the costs of the less-responsible borrowers.

Just like they have a right to know something about you, you have the right to know what they're saying about you. Exercise your rights. It's not always easy or pleasant, but pulling your reports and fixing errors are the only way you can make sure you get what you deserve. You have to be your own consumer advocate, because nobody knows the truth about you better than you. Keep your ears open: new consumer-reporting companies will undoubtedly appear and use information for new purposes.