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Archive for the ‘Credit Reports’ Category

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Credit Bureau Blues? Contest That Debt!

February 17th, 2010 by Matthew C. Keegan | 4 Comments | Filed in Credit Reports

Credit reports contain important information concerning you including where you reside, work, in addition to particulars in relation to your credit history. Lenders, employers, landlords, hospitals, and various parties can easily acquire copies of your credit reports to discover your creditworthiness.

housing crisisIn a June 2004 survey, the Public Interest Research Group (U.S. PIRG) discovered that one in four credit reports contained serious enough errors to deny consumers credit, keep them from getting an apartment, or be denied employment.

Obtain your credit reports. You found an error on one credit report, but you should check your other two reports to determine if this same mistake continues to be included on those as well. Experian, Trans Union, and Equifax are the three credit reporting bureaus.

You can obtain one free copy annually of each credit report by visiting AnnualCreditReport.com. Review each report; errors must be reported directly to the respective credit bureau.

File a credit report dispute. According to the Federal Trade Commission (FTC), both the credit bureau and the information provider must correct inaccurate or incomplete information appearing on your report. In your case the information provider would be a lender who insists that you owe them money.

Send a dispute letter to the credit bureau explaining why you believe certain information is incorrect and include copies of supporting documents such a copy of your loan showing that it has been paid off. Visit the post office and request that your letter be sent by certified mail with return receipt requested in order to ensure that the consumer reporting company received it. Keep copies of your dispute letter and enclosures for your records. Repeat this step with each credit bureau only if that information appears on their reports.

Wait thirty days. Once you have filed your dispute, the credit bureau has to investigate your claim, something they must complete within thirty days if your claim has merit. They will contact your lender and provide to them a copy of your dispute letter and supporting documentation for their review. Once the investigation is complete, then the credit reporting bureau must give to you their findings in writing.

If ruled in your favor, then the credit bureau will also issue to you a free, corrected copy of your credit report. You will also be supplied with contact information of the information provider. You can also request that the credit bureau, at their own expense, notify everyone who has looked at your credit report within the past six months that a dispute has been settled in your favor. For employment purposes, that right extends for two years.

Follow up with the credit bureau. If the credit bureau determines that the debt has not been settled, then you can arrange with your lender to make payments or a settlement. You may also want to ask the credit bureau to place a statement of your dispute in your file and in future credit reports. That way people who obtain copies of your credit report know that you have addressed the issue.

Considerations

A sample dispute letter is available on the Federal Trade Commission site. Send your letter and supporting documents to the address provided by the credit reporting bureau.

Cautions

Make sure that the information in your credit reports is accurate before applying for a loan, buying insurance, or applying for a job. The dispute process can delay everything else until your situation has been resolved.

Resource

The New York Times: BASIC INSTINCTS; Credit Reports: They’re Free But Flawed


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Bad Credit Auto Loans Advice

January 21st, 2010 by Matthew C. Keegan | 4 Comments | Filed in Autos Express, Consumer Tips, Credit Reports

You have seen the ads: if you have bad credit, we can provide a car loan for you! Unfortunately, if you take them up on their offer you could end up paying a very higher interest rate for your loan, costing you a mint in financing charges.

Before you trade in your old gas guzzler, make sure that your credit is in good shape.

Experian, one of the three credit reporting bureaus, says that a person whose credit score is above 700 “usually suggests good credit management.” They also say that most scores fall between 600 and 750 which means that if your score is below 600 then you pose a greater lending risk. (see Experian.com: What is a Good Credit Score?)

But bad credit does not mean you cannot get a new or used car. What it does say is that if you are patient and work first on improving your financial picture, then you can get an affordable loan to cover the cost of your new ride.

Let’s take a look at some steps you might want to take in a bid to improve your credit score:

Pull your credit reports. Did you know that you are entitled to one free copy annually of your credit reports? AnnualCreditReport.com is a site managed by the three credit reporting bureaus—Trans Union, Experian, and Equifax—where you can obtain copies of your reports.

All three reports contain important consumer information about you including your credit accounts, loan balances, payment history, job and personal information, and other details.

Review your credit reports. Examine your credit reports closely to make sure that the information contained in each is accurate and up to date. Wrong or outdated information can pull down your credit score, perhaps enough to affect what lenders will charge you for your car loan.

Nolo advises consumers to “complete the form the credit bureau provided to dispute entries in your report. List each incorrect or out-of-date item and explain exactly what is wrong.” After thirty days, that information must be removed from your credit reports if in error. (see Nolo.com: How to Clean Up Your Credit Report)

Obtain your credit score. Through AnnualCreditReport.com, you can obtain your credit score too. Unlike your credit report, you will need to pay a fee for this service.

Trans Union and Equifax offer credit scores through this service (Experian requires you to obtain it through their website), so choose just one company and pay that fee. This information will serve as a baseline score going forward, a number you will want to improve as you fix your credit.

Analyze your debt. In addition to reviewing your credit reports for mistakes or outdated information, these reports can give you a good indication of what is holding down your credit score.

You cannot do anything about negative, but correct bad credit information such as defaulting on a loan or filing for bankruptcy. Those events will show up on your credit reports for at least seven years. But if you have made late payments to your creditors, landlord, or utility companies then work toward making your payments on time while also paying more than the minimum balance on your credit cards each month.

Give it time. Certainly, if you want or need a new car right now there is not much to stop you from applying for a loan. But consider this: if you are considered to be a sub-prime borrower, then you could pay two or three times the going rate for your car loan. Better for you if you were to delay your purchase until your score improves.

Work actively to pay down your debt, resist taking out new credit, pay your bills on time and within six to twelve months you can pull your credit reports and obtain your credit score again. By then, your score may have improved enough to where you can get a car loan at a favorable rate.

Considerations

  • When it comes time to get a car loan, shop around. Credit unions generally offer a lower rate than commercial banks.
  • Put more money down. If you have bad credit, then make a larger down payment. If you assume a greater portion of the risk, then lenders may adjust their terms accordingly.
  • The look, feel, and smell of a new car is enticing. However, your car can lose as much as one-third of its value within the first year of ownership. You may do better finding a late model used car whose price reflects its depreciation.

Adv. – If you’re planning to buy a new car, then you’ll want to get price quotes or find a dealer to arrange for a test drive. You may also want to arrange for your own auto financing which can save you hundreds of dollars on your next car loan.


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Free Credit Reports & Where To Get Them

September 8th, 2009 by Matthew C. Keegan | 2 Comments | Filed in Credit Reports

The Federal Trade Commission (FTC) through an act of Congress has authorized that all three major credit reporting bureaus provide one free copy of your credit report to you on an annual basis. This ruling has proven to be a boon for consumers who are now able to learn what creditors are saying about them and quickly respond to errors and omissions. However, not all businesses offering to help you obtain your free credit reports are in truth free. So let’s review how you can know if a particular offering is right for you.

Cutting up your credit cards is one way to control spending. But so is obtaining free copies of your credit reports to see if youre creditworthy in the first place.

Cutting up your credit cards is one way to control spending. But so is obtaining free copies of your credit reports to see if you're creditworthy in the first place.

Firstly, only AnnualCreditReport.com is the web site recognized by Experian, Trans Union, and Equifax to supply free credit reports for consumers directly by these three big credit reporting bureaus. At that site, you can get one free copy once per year from each company, however you will have to pay $5-8 to receive your credit score, which is separate from your credit report. You don’t have to order your score, but it is valuable information that every consumer should have.

Secondly, there are companies out there who claim to provide free copies of your credit report and credit score. At face value these schemes might look like acceptable offers, but they almost always come with caveats, namely requiring you to purchase some other services. These services may include credit monitoring, credit watch, and so forth. Charges for these services vary, but you’ll probably commit to paying $8 to $12 per month for most plans. Together, you may pay out more than $100 annually for this kind of program while it would only cost you $20 or less yearly through the FTC’s authorized site at AnnualCreditReport.com

Finally, it is not illegal for these businesses to offer these services to you. It can seem to be a bit deceptive, but they normally are upfront about what is being offered to you through their plans. However, if you obtain your credit reports on a scheduled basis, then you simply don’t need their credit watch service. Just keep on the alert for possible problems cropping up through your free reports.

If you choose to utilize a credit monitoring program, make sure that you can cancel the plan at any time. Stay away from yearly contracts but consider using these kinds of businesses if you need an extra pair of eyes to watch out with you. In some cases (such as an ongoing identity theft issue) these services may be helpful, but in the majority of cases your personal oversight will do the trick while also saving you money.

Resources

Check Your Credit

Federal Trade Commission

Financing Tips


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Credit Report Errors? You Can Fix Them Yourself!

May 11th, 2009 by Matthew C. Keegan | 1 Comment | Filed in Credit Reports

A past due notice could work against you, impacting your credit report and credit score. However, not all of the information found on a credit report is accurate, therefore youll want to obtain free copies of your three reports annually.

A past due notice could work against you, impacting your credit report and credit score. However, not all of the information found on a credit report is accurate, therefore you'll want to obtain free copies of your three reports annually.

If you’ve recently received a copy of your credit report from either Experian, Equifax, or TransUnion (the three major credit reporting agencies) you might be surprised by just how much information that they have about you. Trouble is, some of that information may not be correct. Should that be the case, then you need to take the appropriate action to correct your reports because if you don’t, then wrong information could come back to haunt you the next time you seek to obtain credit, rent an apartment, even apply for a new job.

Credit Report Errors Can Harm You!

Mistakes found in your credit reports can work against you, possibly affecting your ability to obtain credit at an interest rate favorable to you. Left undiscovered, credit report errors can harm you by causing you to pay hundreds of dollars more each month on your mortgage or finding that your new auto loan application has been turned down. This shouldn’t happen as each credit reporting agency — Experian, Equifax, and TransUnion – must supply to you one free copy of your credit report on an annual basis upon request.

You can obtain your credit report copies at www.AnnualCreditReport.com, the website which has been approved by the Federal Trade Commission to process your request. Just to let you know, your all-important credit score is not included with the offering, but you can and should obtain that information too by paying a separate, token fee for the service.

How To Report Errors On Your Credit Report

Credit reporting agencies are required to repair errors on your credit report as per the Fair Credit Reporting Act. All the same, they will only take action if you inform them of the problem first. Be prepared to draft a letter to the respective credit bureau and send it to them by means of certified mail. That letter should include the following information:

  • Your complete name, address, social security number, and your date of birth.
  • The disputed company’s name and your account number with them.
  • State your reason for the dispute, share your correct personal information, and ask that they amend your credit report consequently.

Mistake?  By Law, They Must Be Corrected Or Expunged

By law, the credit reporting agency will get rid of any disputed information that they cannot be verify, so make certain that you do a thorough job to corroborate everything correctly. Naturally, if you do have a track record of credit problems that information will remain on your credit report and it will reduce your credit score. Please keep in mind that if you filed for personal bankruptcy that information can stay on your report for as long as ten years.

In conclusion, don’t forget to obtain free copies of your credit reports from Experian, TransUnion, and Equifax, cautiously examining each one to look for mistakes.

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