THE PROPER WAY TO REVIEW YOUR CREDIT REPORT
Now that you know how to get a copy of your credit report, the next thing you need to do will be checking over the info for accuracy. Start by going through the personal information section of your credit report. Be careful so that your name is listed and spelled correctly, as well as your current and past addresses. Verify to be sure your date of birth is listedcorrectly, and also your current and former employers. If you see anything inaccurate, put down a list documenting everything that you will have to dispute with the credit bureau.
What you have to do now, go through the public record section of the report. This is the section of your report that records any tax liens, judgments, bankruptcies, or legal claims against you; go through the list carefully to determine if any of the data is listed incorrectly. Add anything that is false or that has been satisfied (paid off) to your list of changes to be made.
The following section to go through will be the collection history section of your report. This section will show the collection agency that is working to collect the debt from you. The original creditor with whom your debt originated will be listed under the collection agency; carefully go through all of the dates of account openings and closings. Check all balances owed for accuracy and compare with the date of reporting to determine if the creditor is updating the balances accurately. If anything is listed in the collection section that is false, make a note of it on your list. Also write down that each creditor should have contact data listed.
The last section you will go through is the current activity section. This shows all of your currently active accounts. For example, the collection history section, you will need to go through the accounts data carefully (dates opened and closed, balances owed, last reporting date, etc. )#), go through to make sure the creditor's contact data is listed, if you need to correct any data in this section of your report. Following, make sure all accounts you have closed are reported as closed, including the date they were closed. Finally, go through the late activity columns to determine if any of your payments have been documented as late.
Now that you have reviewed your credit report and have documented the inaccuracies, you are ready to dispute any inaccuracies you have found.
Visit free credit report for more information.
HOW TO ASK FOR YOUR FREE CREDIT REPORT
A credit report is a file of your own credit history. Creditors turn to your credit file when deciding at the beginning whether or not to grant you credit.
A credit report does not have any information on your race, religion or political preferences, but it does contain data on:
Your Personal Identifiers: your legal name, present and past addresses, present and past employers and your social security number.
Current and Past Credit Accounts: this part contains all your present credit accounts also credit limits, balances and payment histories.
Public Record Data: Here they gather any tax liens, bankruptcies and legal judgements against you.
Credit Inquiries: Data regarding businesses that have asked your credit file in the last 12 months.
It's vital to annually check your credit file as more than half the credit reports contain a bunch of errors, according to the Federal Trade Commission (FTC.gov) Often, there can be errors from the credit bureaus themselves: the credit info is transmitted to the 3 major credit bureaus by tapes or written reports, and a simple typographical error may inadvertently add negative information to your file.
Creditor error happens when the reporting company mistakenly give the wrong information about you.
Lastly, since the major credit bureaus are competitors, they do not share data. So positive information could be reported to Equifax and Experian, but is absent from your credit file at Transunion.
For these reasons, it's vital to verify your free credit report before any big purchase or at least annually to report any mistakes.
Ordering your Free Credit Report is easy. The Federal Trade and Accurate Credit Transactions Act (FACT) of 2003 allows you to get a free annual credit report from the 3 major credit bureaus once a year at no charge.
Visit free credit report for more information.
WHAT YOU DIDN'T KNOW ABOUT YOUR CREDIT REPORT
Improving your credit score is a thing that everyone tells someone with bad credit to do. The next issue then would be how. The most obvious answer of course is obtain your credit report and start managing your debt. We recommend that you seek information that will assist you in repairing your credit. First seek out a known credit agency that has a proven track record and actual testimonials of their client's success. After, consider using the tips and tricks from this agency or a credit counselor, but following up on that advice yourself instead of having an agency report your credit repair progress to the credit bureau.
What does FICO mean
FICO is a way of reporting your credit with a score within a range of 300-850 with 300 being below standard, 500 being poor, and 700+ being A+ credit. FICO stands for Fair Isaac Company credited with creating this scoring method from the data in your credit report. According to myFICO.com 90% of lenders use this credit scoring system. It would be best to know your score. This score determines what APR you will get for a mortgage or auto loan. Simply put it decides how much your monthly payments will be. For a score of 500-600 you may pay 3% or more in interest per month comparing to a neighbor that buys the same item with a credit score of 700-800. This cost someone with a low score thousands more dollars a year for the same item. As if this wasn't enough a bunch of credit card companies and other lenders to those with bad credit take full advantage of this information to charge extremely high interest rates.
How much time Does Credit Reporting Remain on Record
At the end of seven years a good part of debts are cancelled. The adage time cures old wounds applies even to credit scores as derogatory information such as slow pays, etc., will be removed from your report after seven years. Reports relating to good credit standing are generally retained on your records. Once these damaging entries are erased from your report, your credit score should improve your credit repair efforts. Don't neglect to make timely payments and watch for error reporting.
How Can I Correct Errors on my Credit Report
The best way to address mistakes after you obtain copies of your credit report from all three credit bureaus is to send a leter to each of them. Document all of the errors and put down your dispute with the report together with copies of any evidence you may have. Also contact the creditor that made the error and do the same. Credit repair efforts could increase your score after these corrections have been made.
Visit free credit report for more information.
CAN THE CREDIT REPORT COMPANIES HELP YOU?
Credit report companies will generally play a vital role in assisting you with loans and credit, if you find one that is good. However what really can they do to help you when you know it's the moment to employ their help. Here you will find a few things you can expect from credit report companies.
Obtain Your Credit Report - Any credit report company worth its salt will be able to get your personal credit report fast and easy. Indeed, obtaining your credit report is cost free, free of charge, but these people can do it faster because they know where and how to get yours from all three credit bureaus. Usually this is worth the cost in spared time.
Assess Your Credit Report - As soon as you have gained access to your credit report, you then must start the laborious task of reading it. Credit report companies know precisely where to look and what it means for your credit standing. They will be able to point out the problems in your personal credit report.
Give Ways To Increasing Your Credit - As soon as they have looked at your credit report, a credit report company will be able to put together a list of exact steps that you should take to improve the problem areas of your credit history. This is generally going to be in the form of challenging dubious or mistaken statements on your credit.
Increase - If you don't wish to do it yourself, then credit report companies can in reality implement ways to increase your credit rating by challenging false or misleading claims on your credit report. These people have great experience at doing this and know precisely who to contact and how to contact them regarding mistakes on your credit report. This service can be a great time saver.
Basically, credit report companies can save you a lot of time and hassle, and in the long run will generally be able to help you increase your credit score and gain access to more and cheaper finance.
Visit free credit report for more information.
CREDIT REPORT MYTHS
Considering how valuable your credit report and your resulting credit score are to you, it never ceases to amaze me how many people believe in and rely on misconceptions, myths, and downright bunk about how credit reporting really works.
A good part of people do not realize that they have three entirely separate and distinct credit reports, one from each of the three credit reporting bureaus. Since these bureaus do not share information it means that not one of them has a clear and complete picture of your credit. And that's not all, chances are extremely high that your credit report with at least one (if not all) of the credit bureaus contains errors, and the only way the errors will get removed is if you dispute them.
But let's spend some time here talking about some very common myths about credit, credit scores, and credit reporting, and find out what the real deal is on this misconceptions.
Myth #1: Paying off a negative account on your credit report will get it removed from your report.
That account will remain on your credit report for years, as it is part and parcel of your credit history. Don't forget that, your credit history is exactly that - a history of your dealings with credit, and just because an account is closed or paid off does not dismiss the fact that it is still part of your credit history.
Myth #2: Paying off an account will make your credit score to increase significantly.
There are a huge number of factors that come into play when the credit bureaus calculate your credit score. Chief amongst those factors are: have you been paying your financial obligations on time with at least the minimum payment due. Paying off an account entirely can actually do more damage than good. Having credit in good standing, but keeping your balance less than about 32% of your credit limit is a great place to be, and you gain no additional points by paying off that account.
Myth #3: Checking your credit reports will lower your credit score.
The financially savvy consumer will check his credit report at least once a year, sometimes more often. Every time someone requests a copy of your credit report, that fact is flagged, but it is also flagged as to who requested your credit report. If it was you, then it does nothing to your credit score, as opposed to having your credit report requested by 12 different loan companies, which is almost sure to raise a red flag and lower your score.
Myth #4: Cosigning for a loan does not mean you are responsible for the account.
The reason you were requested to co-sign on a loan or an account for someone is because they themselves have insufficient credit history or have bad credit history. The act of you co-signing on it is you telling the financial institution "hey, if they default on this, I'll take care of it", so you do have responsibility for the loan. But it gets worse - if the person who took out the loan starts to default on it, then it is also your credit score that suffers, since again, you co-signed on it, giving you some responsibility for making sure they repay it on time.
Understand how the credit game is played. You cannot win any game if you don't know the rules, and since credit affects a lot of different areas of your life, it is well worth your time to understand the factors and the myths about how your credit score is derived.
Visit free credit report for more information.
Know Everything About Your Credit Report Laws
Are you sure you know what's inside your credit report? Thanks to the terms of the Fair Credit Reporting Act (FCRA), you have the right to know exactly what credit reporting agencies are introducing in your credit report. That's merely one of the rights that the FCRA guarantees you - and every consumer.
The Fair Credit Reporting Act was enacted to ensure the accuracy and privacy of your credit report. All businesses that use information from your credit report in order to determine whether or not, to lend you money or offer you credit are obliged to follow guidelines that are set out by the Fair Credit Reporting Act. The provisions of the Fair Credit Reporting Act detail how long particular financial information may be retained on your report, and also ways for you to correct data on your credit report, guarantee your right to see your credit report, and give you rights when dealing with creditors.
What exactly are these guidelines and how can they really help you if a credit agency is stating false or misleading information about your credit history?
1) You have the right to look at your credit report.
In the situation where you have been turned down for credit, housing or employment based on information provided by a credit reporting agency, you have a right to know which agency provided the report. After filing your request, the creditor must give you the name and address of the credit reporting agency that they used. And also, the credit reporting agency must give you, your credit report upon your written request for it, and they must do so chargin only for copying and postage.
2) You have the right to correct your credit report.
If the credit report you receive contains inaccuracies you have the right to ask for it be corrected with the accurate information. The request must be made in writing, and the credit reporting agency to whom you make the request have to investigate it within 30 days of their receipt.
3) You have the right to get a corrected copy of the report at no additional charge. But, you may have to pay for postage.
You can put together a written request to have a corrected copy of your credit report mailed to you, or to any agency that has requested your credit report in the past six months for credit purposes, or in the past two years for employment purposes.
4) They must respect a written request to stop further contact with you.
In a world where your credit report is most of the time your road to a better-paying job, housing, credit and many other things, it's vital to know what credit agencies are reporting about you. A good part of the consumer protection agencies strongly recommend that you ask for and analyze your credit report every year so that you can correct any inaccuracies, or request that reports of special circumstances be attached to the report. It's a small task that could save you a lot in the long run.
Visit free credit report for more information.
Actually though most of the people in United Places now has a right to get a complimentary credit report annually from most of the three main credit bureaus, Equifax, Experian, and TransUnion, there is still a relatively large extent of doubt among consumers just as to whether they can get a credit report without having a credit card.
In fact having a credit card is not mandatory to get your credit report. Most of the people is free to have a look at his financial records without any billing whatsoever annually. This is imposed by law. However numerous (the fact is that almost all) of online credit report providers that give free credit card reports use credit cards as a technique to verify the identity. This is one of the main reasons for the confusion. Consumers should be open-eyed when utilizing such services and they will must go through the small print.
Nonetheless there is no need for a credit card to obtain your free credit report and you can pass over the need to look on other online sites when you can enter in possession of the credit report from legally mandated source site. The only thing that you want to do is to have a look at the main website managed by the three main credit bureaus to be able to arrange the free credit reports good provisions of The Fair Credit Reporting Act (FCRA) and Fair and Accurate Credit Transaction Act (FACT). This website is named annualcreditreport. com and once you take care of, you can almost immediately see your credit report.
Indubitably you will| be asked for proof of identity but it will not be your credit card. You will be asked to specify your name, address, date with birth, and social security number. If you have changed residence you will likely be asked to give old address. Moreover the credit bureau from which you requested the report will ask you to answer a question, that only you have the answer for. Questions may change in one bureau to another, although they will probably refer to employment history, old addresses or telephone numbers.
You also can request your free credit report through the toll free telephone number on the other hand through the mailing address given by the three credit bureaus. Utilizing that method you will find the report within 15 days in the request.
Federal Trade Commissions which mandated the law for receiving your annual credit report free of charge has announced that only one website has the authority to provide your free annual credit report. That website is called annualcreditreport. com. They also alerted about additional websites that provide free credit reports, but with the catch that you have to signup for credit monitoring. That should be noted that the only real method with getting your report without having to signup for other providers is to contact the credit bureaus directly. This is done either via the internet page, the telephone or through postage mail.
Since you can ask for the credit report from most of the three credit bureaus once every year you could space the requests out rather than requesting all three report at once. That way it won't be needed to wait 12 months for your next free credit report. Keep in mind, however, the three bureaus have different sources for the information they include in their reports. Therefore, their credit reports for the similar person tend to differ from each other.
Find out how to get a free credit report on the web by visiting freecreditreport.com
, a popular credit report website that offers , tips, advices and resources to consist of information on obtaining a free copy of your credit report.