Who Is Factual Data on My Credit Report?
Seeing "Factual Data" on your credit report? Discover what this entry signifies, its origins, and how to confidently manage it.
When reviewing your credit report, encountering unfamiliar names can be a source of confusion. Your credit report serves as a detailed record of your financial history, encompassing various accounts, payment behaviors, and inquiries made into your credit profile. An entry like “Factual Data” might appear, leading you to wonder about its origin and implications. This article aims to demystify Factual Data, explaining its role in the financial ecosystem and how its presence on your credit report relates to your financial activities.
What Factual Data Is
Factual Data operates as a consumer reporting agency, specializing in providing comprehensive data and verification services to businesses. They are not a direct lender or a creditor, but a third-party information provider. Their core function involves compiling background screening, credit checks, and other risk management solutions for clients. They serve sectors like mortgage lending, property management for tenant screening, and employers for pre-employment background checks. Factual Data gathers credit information from Equifax, Experian, and TransUnion, consolidating it into a single report for businesses.
Why Factual Data Appears on Your Report
The appearance of Factual Data on your credit report correlates with an action or application you have initiated, even if indirectly. One common scenario is during the mortgage application process, which includes both pre-approvals and final loan applications. Mortgage lenders frequently use services like Factual Data to obtain a merged credit report, which provides a holistic view of an applicant’s credit history from all three major bureaus. This allows lenders to efficiently evaluate creditworthiness before making a lending decision.
Another reason you might see Factual Data is if you have applied for a rental property. Landlords or property management companies often utilize consumer reporting agencies for tenant screening, which includes reviewing an applicant’s credit data. Similarly, if you have undergone a pre-employment background check for a prospective job, especially for roles involving financial responsibilities, Factual Data may have been used by the employer to assess your financial behavior. Certain insurance applications can also trigger an inquiry through Factual Data, as insurers may review credit information as part of their underwriting process. In each instance, Factual Data acts on behalf of another entity that has a permissible purpose under the Fair Credit Reporting Act (FCRA) to access your credit information.
Understanding Factual Data Inquiries
When Factual Data accesses your credit information, it results in an inquiry on your credit report, which can be either a “hard inquiry” or a “soft inquiry.” A hard inquiry occurs when you apply for new credit, such as a mortgage, auto loan, or credit card, as it signifies a credit-granting decision. These inquiries require your authorization and can cause a slight, temporary dip in your credit score. Multiple hard inquiries within a short period, outside of a rate-shopping window for specific loans like mortgages, can be viewed by lenders as an increased risk.
Conversely, a soft inquiry happens when someone checks your credit for informational purposes rather than a lending decision. This type of inquiry does not affect your credit score and is only visible to you on your credit report. Examples of soft inquiries include checking your own credit report, pre-screened offers for credit, most employment background checks, and many tenant screenings. Factual Data’s activities for mortgage pre-qualifications or most tenant screenings result in a soft inquiry. It is important to differentiate between these types of inquiries to understand their impact on your credit profile.
Steps for Factual Data Entries
If you encounter a Factual Data entry on your credit report and have questions or concerns, there are specific steps you can take. To begin, obtain a free copy of your credit report from Experian, Equifax, and TransUnion through AnnualCreditReport.com. This site provides free weekly access to your reports, allowing you to review all entries. Carefully examine the Factual Data entry, noting the date and inquiry type (hard or soft), to recall the related application or event.
If you believe an entry is inaccurate or you do not recognize the inquiry, you have the right to dispute it. You can contact Factual Data directly for clarification or to understand who initiated the inquiry. They offer consumer assistance services for such inquiries. Additionally, you should dispute inaccuracies with the credit bureaus that show the erroneous information. The Fair Credit Reporting Act (FCRA) gives consumers the right to dispute errors, and the credit bureaus have 30 days to investigate and correct verified mistakes.