News Home

Directories
  Int'l Realty
  US Realty

DO YOU KNOW WHAT IS ON YOUR CREDIT REPORT?

Most Americans do not have the vaguest notion what their credit repots have listed in them. We don't worry about this until we try to buy a home, rent an apartment, buy an auto, big TV or other items. Credit reports are also used when you apply for a job, are in line for a promotion, buy insurance, apply for a business loan or a line of credit. In short, credit reports are used in all aspects of your financial life.

What a shock. You apply for a loan thinking your credit is good. Your credit report comes back and lists incorrect negative information or negative information that isn't even yours. Unfortunately, unlike our judicial system, in the eyes of the lender and the credit reporting agencies, you are guilty until proven innocent. That can be more difficult to resolve than if the information were factual. The truth is that as much as 50% of all credit reporting agency data is wrong.

WHAT CAN YOU DO ABOUT THIS?

The first thing to do is get copies of your report from all three major credit reporting agencies (CRA). There are several different ways to do this,

If you've been denied credit, insurance, or employment because of information supplied by a CRA, the entity that denied credit must provide you with the CRAs name, address, and telephone number. If you contact the CRA, they must supply you with a free copy of the report. In addition, your entitled to one free copy of your report per year if you certify that (1) you're unemployed and plan to look for a job within 60 days, (2) you're on welfare, or (3) your report is in accurate because of fraud. Otherwise the CRA can charge you up to $9.00 for your report.

If you just want a copy of your report, you can go online or look in the yellow pages under credit or credit reporting. You should check for all three major CRAs since there may be differing information in their reports on you. The three major CRAs are:

• Experian, (formerly TRW), PO Box 2002, Allen, TX 75013; 888-397-3742
• Equifax, PO Box 740241, Atlanta, GA 30374; 800-685-1111
• Trans Union, PO Box 1000, Chester, PA 19022; 800-916-8800

YOU HAVE THE RIGHT TO CORRECT YOUR REPORT.

There are four great myths of credit reporting:

Myth #1 It is somehow shady or borderline illegal to have your credit report cleared of incorrect information.

Fact: It is not shady or borderline illegal. In fact, that is what the Fair Credit Reporting Act is all about. The Act was passed by Congress in 1971 to give the consumers the protection of law and to help guard against any unwarranted invasion of the consumers right to privacy.

Myth #2: The information on your credit report cannot be changed.

Fact: Actually, the opposite is true under the Fair Credit Reporting Act. Federal and State laws require that these items be removed if they are not 100% accurate or cannot be verified in a timely manner.

Myth #3: It is impossible to get a bankruptcy off a credit report.

Fact: Bankruptcies can be removed from credit reports like any other derogatory item. The nature of the derogatory item has nothing to do with its removal under the Fair Credit Reporting Act. If the bankruptcy is incorrect, it must come off.

Myth #4: Credit Reporting Agencies are empowered with some kind of governmental authority.

Fact: Absolutely not! They are simply large corporations whose primary goal is to make a profit. They have no connection to the government but are heavily regulated by State and Federal agencies. The Federal Trade Commission has responsibility over the CRAs.

MAKE SURE THAT YOU INSIST ON YOUR LEGAL RIGHTS TO HAVE ANY INCORRECT INFORMATION REMOVED FROM YOUR CREDIT REPORT

It is very time consuming to get errors corrected but it is well worth it. It requires a lot of patience and perseverance.

First, send the CRA a letter telling them what information you believe is in accurate. Include copies of documents that support your position. Be very specific. Just state the facts and explain why you dispute the information. Always include a statement for them to correct the item or delete it.

CRAs must investigate all items that you list in a timely manner, usually within 30 days. They must forward all data to the information provider who then must provide a written response to the CRA. If the information provider finds the information to be inaccurate, it must also notify all nationwide CRAs so they can correct the information in their files. Disputed information that cannot be verified must be removed from your file.

When the investigation is complete, the CRA must give you the written results and a free copy of you report if the information changes. If you disagree with their response, start the whole process over again. This is where diligence and patience come in. It is very frustrating to have to go through the process again when you know your right. Unfortunately, it is the only way.

If you are still dissatisfied after the second attempt, write the Federal Trade commission and explain your problem. They will step in and help you resolve your dispute.

You should also write the creditor and gave them the same information that you gave the CRA It helps to approach this from both ends.

The above steps seem very formidable but it is essential to do them if you have erroneous information on your report. Your financial health is at stake.

| IRED Home | Search IRED |


© 1995-2008 IRED.Com, Inc
All Rights Reserved