Credit Reports Galore

Abhishek Agarwal asked:


Did you know that you can get a free credit report? Your credit report is the document that records all your credit transactions. It is what finance companies, banks and credit card companies use to judge whether you are a good risk. If you’ve had difficulty getting a loan or a credit card it may be because you have a bad credit report.

What is the point of knowing your credit report you may ask. If you can’t get credit what can you do about it?

Well there’s plenty you can do. Getting your free credit report can really help you turn the situation around. It is a way of taking control of your financial affairs. This is the starting point to improving your record score so that you can get loans.

When you get your credit report you can make sure that no one has stolen your identity and is running up bad debts in your name. This was one of the main reasons the legislation was brought in. The problem of identity theft is a serious one. The Fair And Accurate Credit TRansactions Act was passed in December 2003 specifically to prevent identity theft.

The FACT Act as it is known allows US citizens to see their credit report once a year. They can check it for accuracy and have mistakes changed.

There are three credit reporting companies: Experian, Equifax, and TransUnion. You can get a free report from any one of them. They are all similar but areproduced by slightly different methods.

You can go to the website of one these companies and apply for a free credit report. They can be found at www.experian.com, www.equifax.com, or www.transunion.com. Alternatively, you can visit www.annualcreditreport.com or www.freecreditreport.com. Follow the instructions to get your credit report.

They will check your identity by asking a few personal questions just as your bank would. But the process is not difficult. If you find no problems then there is probably no need to get the other reports. If you find problems then it is worth paying to see the others and correcting the mistakes.

Information that was once kept secret from consumers is now freely available. This is a resource and you should make use of it. It will help you to keep a good credit score and keep your finances in order. Since this legislation came into force checking your credit report has become one of the basic tasks of personal financial management.

You may not have had your identity stolen. The bad credit score may be all your own work. But once you know what the damage is you can set about putting it right. The worst thing you can do when the debts start piling up is to hide your head in the sand.



HOWARD

Rayven Perkins asked:


There are multiple credit myths and rumors that surround the realm of credit reporting. Some are urban legend, and have become so widely disseminated that they are taken as gospel; others are deliberately encouraged by lenders to terrorize or cajole debtors into compliance.

The following is a compilation of the most common credit myths concerning your credit file, and the reality that all consumers should be aware of.

Myth: Credit reporting companies are subsidiaries for or working on behalf of the federal government.

This belief is fostered by the fact that creditors make such a big deal about “registering” you as a debtor with a credit reporting agency that the power of the agency itself becomes inflated. In fact, credit reporting companies are nothing more than mega businesses and their true subsidizers are the banks and finance companies.

Myth: If you pay a bad debt, the negative report will automatically be removed from your credit immediately.

This is a tactic used by unethical bill collectors to get you to pay your debt, and 9 times out of 10 it is a flat out lie. You can occasionally make an agreement with a creditor to pay a debt on the condition that it be removed or marked paid as agreed, but this should always be in writing, and they must put in writing that they will contact the credit reporting agency, request the update, and follow through until it is done.

Myth: You have to sign up for a credit monitoring service to get a free credit report.

This one is just ridiculous, and has been picked up by hundreds of companies trying to sell “credit protection” packages. They offer you a free credit report through their website and then sign you up for a monthly automatic charge for an overpriced, basically useless “credit alert” program that you can duplicate simply by taking reasonable precautions. Don’t be fooled. You are entitled by law to a no strings attached, once a year, completely free report from each of the three major credit reporting companies.

Myth: Trying to get stuff removed from your credit report is illegal.

Again, this is just not true. There are illegal and unethical ways to tamper with your report, but many people have incorrect or outdated items on their report and it is perfectly legal to try to have those removed or updated. The steps to accomplish this are easy, and you can do it yourself so don’t waste money on a “credit repair” company that claims it can restore your credit for a huge fee.

Myth: Credit Reporting agencies are required by law to keep negative items on your report for at least seven years.

Actually, the Fair Debt laws state that after 7 years credit reporting companies are required to remove adverse reports - and nowhere does it say that these can’t be taken off earlier. The credit reporting agencies perpetuate this myth themselves so people will not ask them to remove stuff.

Myth: Credit reporting agencies strive to keep accurate reports.

In what alternate universe? Again, a credit reporting agency is not an agent of the government, and has little interest in helping anyone out or motivation to be accurate. They are in business to make money, and they make it from the lenders.

They have a vested interest in reporting whatever the creditors tell them because the creditors pay them to, and they double dip by selling this personal and private (and often inaccurate) information to other lenders and agencies as well. They have no vested interest in removing items, or in helping you at all.

Now that you know what credit myths to watch out for, you can take steps to review your credit and begin to correct any discrepancies. Unfortunately, credit reporting agencies do hold a lot of power over the average American citizen, and it falls to you personally to make sure that you are not being taken advantage of or wrongfully portrayed.



OMAR

Abhishek Agarwal asked:


When a company is deciding whether or not to give you a loan, a mortgage or a credit card it checks your credit report. Your credit report contains information about every credit transaction you have made. If you failed to make a payment or defaulted on a loan then it will be on your credit report.

Until the US government brought in legislation to make this information freely available to you only finance companies, banks and mortgage lenders could see it. Now you are entitled to see it too.

The FACT Act made it possible to see your credit record for free every year for the first time. You need no longer be in the dark about what the finance companies know about you.

This is information about you and it is your right to see it. You should make use of that right because it affects your ability to get loans, credit cards and mortgages. If you are refused credit is probably because of something in your credit report.

There may be mistakes in your credit report that are stopping you from getting a loan. Someone may have fraudulently used your identity to take out a credit card or loan which they have not paid. You will then be left with a bad credit report that is not your fault.

There are three companies that compile credit reports. You can only get to see one of those reports for free. But if there are mistakes in that one then it will be worth your while to pay for the other two.

Not all the credit reporting companies have exactly the same information. They compile their data in slightly different ways.

Once you have seen the report and checked it against your own records you can correct inaccuracies any inaccuracies it may contain. There is a facility on the websites of the credit reporting companies for you to inform them of mistakes in your report. You will have to produce written evidence such as bank statements or credit card statements. But the process is quite simple.

By correcting inaccuracies in your credit report you are protecting your credit score. Even one mistake can make the difference between getting a loan and being refused credit.

All Americans can now get a free credit report every year. It is a responsible financial practice to take advantage of this opportunity. By doing so you are taking control of your own finances.

You can guard against identity theft, you can correct errors, and you can see if your credit score is falling because you have a pattern of late payments. It is in your interests to maintain a good credit score. If you check your credit record every year you can address problems as they arise.



MORTON

Mike Clover asked:


The FTC claims that Credit Report Repair may be better for you if you do it yourself. You have seen advertisements on TV, local newspapers, internet. All of these credit report repair companies claim the following:

* "Credit Problem? No Problem!"

* " We can get rid of bad credit problems - 100% guaranteed"

* "We can remove bankruptcies, judgments, bad loans and tax liens from your credit file forever

The FTC says "Don’t believe these statements. The only thing that will fix your credit is time, conscious effort, and a personal debt repayment plan will improve your credit report.

This article will explain how you can improve your creditworthiness and gives legitimate resources for low or no cost help.

The Scam

All over the US companies appeal to families and individuals that have bad credit problems. They promise for a fee, to clean up your credit report so you can get a car loan, a home mortgage, a job or even a insurance. The fact is, they cannot deliver. After you pay them hundred of dollars or even thousands of dollars in fees, these companies do absolutely nothing to improve your credit report. They typically vanish with your money says the FTC.

Warning Signs

If you feel credit repair with one of these companies is your choice, look out for the following.

* Companies that want you to pay before services are rendered

* Companies that don’t tell you your legal rights and what you cannot do yourself for free

* Companies that recommend that you don’t contact the credit reporting companies

* Companies that recommend you create a new identity by way of Identification Number.

* Companies that advise you to dispute all information in your credit report

Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed services they claim they can provide. The FTC says to get what they claim they can do in written, and once it is done then pay them.

The FACTS

No one can legally remove accurate information from you credit report. If you owe the debt, it will be on there for 7 years from original collection date. The law allows you the consumer to dispute inaccurate information on your report for FREE. There is no cost to you for doing this. Everything a credit repair company does for a fee, you can do it yourself for FREE. This is all in accordance to the Fair Credit Reporting Act (FCRA)

v You are entitled to Free Credit Report if you are denied for the following

1. Credit Application

2. Insurance

3. Employment

You are to ask for this report within 60 days of receiving this notification. You are also entitled to the free report if you are unemployed and are about to apply for job, if you are on welfare, or if your report is inaccurate because of fraud including identity theft.

v All 3 Credit Bureaus - Equifax, Trans Union and Experian are required to provide you once a year with a Free Credit Report. In order to get this report you must go to annualcreditreport.com.

v You are allowed to dispute items that are not yours for free. Under the FCRA any company that is reporting information about you that is inaccurate, this information must be updated correctly. If you owe the debt it will not be removed.

Step One

The consumer credit reporting company that is reporting information incorrectly about you must be informed in writing what information is inaccurate. You are to include a copy of documents backing your claim. You are to clearly identify in the claim the following

1. Your full name

2. Address

3. The item in the report that you are disputing

4. The request that it should be removed or corrected

5. Enclose a copy of the report and circle the item in question.

Your credit report dispute letter may look something like this:

Date

You’re Name

Mailing Address

City, State, Zip

Re: Disputing Inaccuracies on My Credit Report

Name of Credit Reporting Bureau

Mailing Address

City, State, Zip

Dear Sir or Madam:

I am writing for two (2) reasons:

1. To dispute certain information in my credit file; and

2. To have you investigate/re-investigate and remove inaccurate information from

my Credit Report and prevent its re-insertion. The item(s) I dispute are encircled

on the attached copy of the credit report and further identified by (identify the

items by name of source, such as creditor or tax court, etc. and identify type of

item, such as credit account, judgment, etc.)This item is (inaccurate or

incomplete) because (describe what is inaccurate or incomplete and why). I am

requesting that the item be deleted (or whatever specific change you are

requesting) to correct the information.(If you are enclosing documents such as

copies of cancelled checks, payment records, court documents, send copies

only, you should always retain the originals — and use the following sentence.)

Enclosed are copies of the following documents supporting my position:

1.

2.

3.

Please reinvestigate this (these) matter(s) and (delete or correct) the disputed

items within the time frame required by the Fair Credit Reporting Act (FCRA) and

inform me in writing of the outcome. Thank you for your time and consideration in

this matter.

Sincerely,

________________________

(Signature)

Your name

Once the investigation is complete, whether they removed the item or not, the creditor must give you something in writing. If the information was deemed incorrect, then they must remove it, and not put it back on your report.

Step Two

Advise the creditor or other information provider, in writing, that you dispute an item. Be sure to include copies only, not your original supporting your claim. The creditors usually provide an address for disputes. If the creditor reports the items to the 3 credit bureaus, they must include the dispute during the reporting time. If you are correct, the creditor must remove the item from the Bureaus it’s reporting too.

For information on "How to Dispute Credit Report Errors, go to ftc.gov/credit.

The reporting of correct information

When negative information is being reported about you, and it’s accurate the only way it will go away is with time. A consumer credit reporting company can report negative information about you for 7 years and bankruptcies for 10 years. Judgments can be reported for 7 years or until the statue of limitations run out.

Credit Repair Organization Act

By law credit repair companies must give you a copy of the "Consumer Credit File Rights Under State and Federal Law" before you sign any contract. They must also give you a written contract that specifies your rights and obligations. Read these documents carefully before you sign anything.

Example of what a credit report company cannot do:

v Charge you for anything until services have been completed

v Make false claims about there services

v Provide any services until they have your signature on a written contract and have completed a 3 day waiting period. During this time you may cancel the contract without any fees occurred.

v Payment terms for services rendered, along with total cost

v Detailed description of services you are paying for

v How long it will take to achieve results

v Any guarantees they offer

v Company address and name

Check your Credit Report at least 4 to 5 times a year.

Even if you don’t have poor credit, you need to know what’s on your credit report. Here are some good reasons per the FTC.

v Because the information it contains may affect whether you get a loan and the payment terms for that loan

v Make sure the information is accurate, complete, and up to date before you apply for a mortgage, credit card, car, insurance or even a job.

v To help guard against identity theft

Hopefully this has shed some light on credit repair, and the importance of have a recent copy of your free credit report.



MARCOS

sylvia1943 asked:


I’m trying to help my step-daughter get the free credit reports which the 3 major credit reporting companies are suppose to provide. She can not find a phone number for any of the companies which is answered by a human. What must she do?
Write them? If it can be done through the Internet, exactly which are the real websites?. Any and all help or suggestions are greatly appreciated.
Thank you
Tony

KIRK