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Posts Tagged ‘Equifax’

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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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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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Your FICO Score Gets A Makeover

January 30th, 2009 by Matthew C. Keegan | 5 Comments | Filed in Consumer Tips, Credit Reports, Home Improvement

In life, there are two things you can be certain about: death and taxes. While you only die once, you’ll be paying taxes over and over and over again. Sometimes death can seem more appealing than the two!

Your Credit Score, Courtesy of Fair Isaac

Mortgage ApplicationAnother certainty in this life, at least to for the American consumer, is their credit score – what is known as a FICO score. The Fair Isaac Corporation score is used by the three major credit reporting bureaus which are: TransUnion, Equifax, and Experian. That score will help lenders determine whether you will receive credit and, if so, at what terms. The higher your score, the better the chance you’ll be approved for a loan and at a favorable rate.

This week, Fair Isaac rolled out a modified version of their credit score, this one dubbed FICO 08. TransUnion is the first of the credit reporting bureaus who will use the new FICO method for calculating credit scores followed by Equifax in the second quarter. Experian is currently in litigation with Fair Isaac over another matter, so we don’t know when they’ll include with the new methodology.

More Accurate Predictor of Problem Borrowers

Supposedly, the new score will be an improvement over the way that the old one was calculated, as it will help creditors do a better job of predicting borrower defaults. In addition, it will be more forgiving of one time slip ups, but it will come down harder on repeat offenders. Scores will still range from 300 to 850 and Fair Isaac is expecting an improvement in lending decisions by as much as 15%.

Consumers may not notice much of a change for awhile, especially as many lenders use the score as only part of their methodology for determining whom they will lend to and for what terms. Some analysts believe that many mortgage lenders will not use the new calculation method until all three credit reporting bureaus are using it. Oftentimes, lenders will obtain credit scores from all three to determine one median score.

Get Your Free Credit Reports

For consumers, now is a good time to pull your credit reports to see if they are accurate and correctly reflect your personal information. Mistakes can impact your credit score, but they generally will only be fixed if you catch them. Thanks to an act of Congress, you can get free copies of all three credit reports at www.annualcreditreport.com. If you want you credit score you’ll pay a nominal fee for that service, something you can do when you order your reports.

Resources

Check Your Credit

Federal Trade Commission

Financing Tips


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Home Mortgage Rates Expected To Drop Below 5% Soon

January 5th, 2009 by Matthew C. Keegan | 11 Comments | Filed in Home Buying, Home Financing

Very good news in the form of lower home loan rates is beginning to unfold across the nation. After peaking just above 6% in Spring 2008, rates are currently just above 5% and expected to continue to fall over the weeks ahead. According to The Wall Street Journal (Home-Mortgage Rates’ Next Stop: Below 5%; January 2, 2009, page C2) house moneyrates may fall even further, perhaps as low as 4.5% for a fixed rate thirty year loan.

This news comes at a time when the country’s housing market is battered and bruised. In some areas of the country, home prices have lost most of the gains realized since 2000 with the Detroit market experiencing price declines in negative territory. The lower interest rates on home loans won’t help all current homeowners especially those whose home values have retreated considerably these past few years.

However, the lower rates will help people who have sat out of the market and are still looking to buy. With home prices depressed and home loan interest rates dropping, demand may begin to pick up. This could translate into the market hitting bottom, the place where many buyers will want to jump in before prices rebound.

So what is driving the lower rates? That would be the Federal Reserve Bank which is planning to purchase $500 billion worth of mortgage backed securities by this coming June, a move which should stabilize the mortgage market. The US Treasury has also jumped in, purchasing $50 billion of mortgage bonds.

For consumers who are planning to buy a home in 2009, there are a few things you can do to take advantage of the coming lower rates including the following tips:

Obtain copies of your credit reports – Free copies of your credit reports are available through AnnualCreditReport.com, a website jointly managed by the three major credit reporting agencies – TransUnion, Experian and Equifax. Get copies of your reports and check them closely for errors; follow each company’s instructions for making corrections. In addition, pay the nominal fee to get your credit score from at least one of the companies; the higher your score the better – the more likely you’ll be approved for a home loan and at a favorable interest rate.

Raise your down payment – Few lenders will offer you a loan if your down payment contribution is only 5%. Many are now requiring as much as 20% down, an amount that could be well beyond the reach of many buyers. Still, you may have that money available in the form of bonds, stocks, retirement savings, etc. Now is the time to assess your portfolio and see which funds can be diverted to purchase a home. In any case, shop around for a mortgage; get prequalified for a loan before you begin to shop for a home. Finally, pay off as much debt as possible.

Begin preliminary shopping – Likely, you’re already familiar with the market where you want to purchase a home. However, even over the past few months prices in some areas have plunged considerably. Learn what the current housing market is like and plan accordingly. You don’t want to overpay in this market, but you do want to offer a competitive price to the seller.

Will the drop in home loan rates signal the end of the recession? That’s hard to say. However, it most certainly will open the door to homeownership to new buyers even as foreclosures continue to mount. If you have the funds to buy, 2009 could turn out to be the best opportunity to buy.

Get prepared now in order to be ready for the Spring home selling season. When Spring arrives you’ll be ready to jump in, perhaps finding the deal of a lifetime.


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