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Posts Tagged ‘AnnualCreditReport.com’

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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7 Car Buying Tips For The New Year

January 4th, 2010 by Matthew C. Keegan | 8 Comments | Filed in Autos Express

The Volt will show up in Chevrolet showrooms by the end of this year, but maybe the Cruze will offer what you want in a new car.

2010 is here and it will be a dandy. At least that is what most of us hope for a year which also begins a new decade: the tens. The auto industry was torn asunder in 2009, with Chrysler and General Motors both filing for bankruptcy and guided through same, while mostly every other car manufacturer recorded double digit losses for the year.

Consumers are buying, but in much lower numbers than when the last decade began when 17 million units were sold. This year, Edmunds.com has projected sales to increase above 11.5 million units with some analysts forecasting an even higher increase. No matter, car manufacturers want your business which means that the deals are still good, quality is constantly improving, and your options are bright.

Let’s take a look at 7 car buying tips for consumers this year:

1. Discounting Continues – You won’t see the discounts of early Spring 2009 when dealers were dropping new car prices by $5-10K on select slow selling models. But you will still be able to find discounts on most models or receive cut rate financing. As always, try to come up with the best financing deal elsewhere and take the manufacturer’s rebate if you are given that choice.

2. Orphans Aplenty – Pontiac and Saturn are being pushed into the history books, but many 2009 models remain unsold. Dealers are snapping these cars up and are reselling them to consumers for ultra low prices. But be forewarned: their resale values will stink and these discounts may not match what these cars are really worth. Still, if you plan on buying an orphan and keeping it until it dies, then this could be a good opportunity for you. Parts and service or warranty shouldn’t be a problem either.

3. Leftover Models – 2009 cars still on dealer lots should fetch a good deal, but you will find the best deal for cars which have made a generational shift. For example, the 2009 Ford Taurus is completely different from the 2010 Taurus, which means that if a dealer still has an ‘09 languishing on its lot, then make an offer that cannot be refused. The Buick LaCrosse, Subaru Legacy, and Mercedes E Class are among the models which are all new for 2010. Ask yourself this: can you live with an aged 2009 design?

4. Chrysler Controversy – While GM appears on the mend, Chrysler may be a different matter. The automaker is ailing, with quality issues, and not offering much of substance beyond its Dodge Ram line. You can probably get a great buy on any Chrysler PT Cruiser and save money on the Dodge Avenger, but these cars are substantially below par. Call it Chrysler bashing if you want, but today’s new car buyers have to look at how things will be 4-5 years out, particularly a vehicle’s resale value.

5. Check Credit – If you are planning to finance your purchase either through a car loan or lease, your credit rating will make a big difference as to whether you will be approved for a loan and at what interest rate. Obtain free copies of your three credit reports at AnnualCreditReport.com and pay the small fee to get your credit score. Review your reports and correct errors as these mistakes can lower your credit score.

6. Wait/See – If you can wait until this summer, a number of electric cars will begin to show up on the market. They’ll be pricey, but they’ll also carry significant government rebates with them, green cars such as the Nissan Leaf and Chevy Volt. Then again, maybe paying $40K before rebate is a bit hard to swallow, which means that the Chevy Cruze and Ford Fiesta may be a satisfactory and affordable compromise for you.

7. Sell It – If you plan on trading in your car, do so only after you negotiate the best deal for your new ride first. Still, you will not get top dollar for your trade, which means that you should visit Kelley Blue Book to get a fair market price for your car, selling it on your own. Consider donating your car to a car charity as these organizations, which do much good, were hammered by last year’s CARS—Cash For Clunkers—program.

There is nothing better than the look, feel, and smell of a new ride. So do your research first and operate from a position of strength. Buy only what you can afford and consider holding off your next new car purchase until you find the right deal for you.

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.

Photo Credit: GM Corp.


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