CREDIT REPORTS

For the most part credit reports are pretty accurate, but there are times where you might find errors – if you do, it’s important to learn how to go about disputing them. The good news is that the credit bureaus are used to individuals and businesses issuing complaints about inaccurate information, so it’s not difficult to dispute your own errors. Let’s look at how you can get it done:

Determining There is a Problem:The first step in disputing erroneous information on your credit report is actually determining what the problem is. You may find that an amount reported by a collector is incorrect. Or you may find a wrong item is listed that you did not create. Whenever you find that there is incorrect information on your credit report, it’s important to dispute it immediately because it will negatively affect your credit score.

If you’re needing to fix some of those incorrect items on your credit report, you’ll be happy to know that there are ways to get it done. Now before you get too excited, you should know that any negative information on your report that is accurate can only be legally removed by the collector at their own discretion – anything not removed by them will generally sit for 7 – 10 years.

Otherwise, those bits of information that aren’t correct can be removed if you know what steps to take. So let’s look at a basic credit repair strategy that can help you dispute items that shouldn’t be on your credit report.

The Fair Credit Reporting Act (FCRA) is an act of Congress that was passed into law initially in 1970, but has been amended several times since then. It is a federal law designed to protect consumers and help promote accuracy and privacy of consumer credit information, and is enforced by the Federal Trade Commission. Under the Fair Credit Reporting Act and its subsequent amendments, the creditors that supply information about you to consumer reporting agencies must follow certain regulations and restrictions. Here are some of your rights as a consumer under the FCRA:

You have the right to a complete disclosure of what is in your file.

The three credit bureaus – Experian, Equifax and Transunion – may differ in the way they format and present information, but in general, all credit reports must contain the same type of information and must exclude certain other types of information.

Basic identifying information such as your social security number and date of birth will appear on your credit report, as well as items related to your employment history such as addresses of recent employers. However, this information is not used in calculating your credit score. Items that are used include:

• Your credit accounts: These are also called “trade lines,” and are reported by your lenders. Every time you open any type of credit account, the lender will report the account type, the date the account was opened, what your credit limit is (or the loan amount), and your payment history. Your payment history will be reported every month for as long as the account is open. If your payments are 30, 60 or 90 days late, this will affect your credit score.

You often hear about the importance of maintaining good credit so that negative information won’t be reported to the three credit bureaus, but what are they and how do they affect you? They are major players in the credit world and have a huge affect on your everyday life, which is why it’s important to understand the role of the credit bureaus. You definitely don’t want a lack of knowledge to have a negative effect on your day-to-day life.

Lets take a deeper dive into what the credit bureaus are and how they affect you…

If you have ever applied for a car loan, a mortgage, or even a credit card, you know how important it is to maintain a good credit record and a high credit score. One of the best tools at your disposal when cleaning up your credit is your credit report from each of the major credit agencies – Experian, Equifax and Transunion. Each of these three credit bureaus maintains its own separate files on your credit history and generates its own credit report accordingly.

You may have heard of a “three in one” credit report, which is often offered by some independent companies. This type of report combines the three credit reports from Experian, Equifax and Transunion into one document, which is then delivered to you, usually for a fee. The advantage of this type of three in one credit report is that it may be more convenient for you to read one document instead of three separate documents from each credit bureau. However, there are a few reasons why you might prefer to go directly to the three credit bureaus to get the original documents yourself.

Almost everyone knows the importance of having a good and solid credit history in regards to everything from qualifying for the best loan rates to searching for a new job. Yet despite your best efforts of prompt payment and open communication, companies can make mistakes within their system that negatively impact your credit score.

Take the case of Kristin and her husband as reported by the Consumerist. The couple worked diligently to ensure that their car payments to Nissan Finance were always on time and never missed a payment. However, Kristin “got notified by my credit monitoring company that Nissan was reporting me 30 days past due on my credit report,” and was less than pleased with that information.

Transferring a credit card balance from one card to another is easy – if you can find the right offer. In the past, transferring a credit card balance was practically guaranteed as an option because all the credit card companies were fighting for people’s business, and so offers were everywhere. Now that the economy has entered a downward slide, and credit is drying up everywhere you look, the offers to transfer your credit card balance have dried up with it. Nonetheless, there will still be offers out there, you just have to look a little harder for them. Once you find one that meets your needs, transferring your credit card balance is a fairly easy transaction to perform.

In the old days, if you were hit with a credit card rate increase you could call and threaten to take your business elsewhere; that was then, this is now. Today, consumers calling in to negotiate a lower credit card rate could be putting themselves at financial risk. That’s because credit card issuers are extremely worried about extending credit in this turbulent environment, and even grade ‘A’ customers have seen their rates increased for no reason at all. A call to a credit card issuer could put you at risk for a “credit review,” as credit card companies view a rate negotiation as a potential sign of trouble – and they’re not taking anymore chances.

Having a good credit score is important. It affects your every day living. When you go look for a place to live – landlords check your credit to see if you will be capable of paying your rent on time. When you go looking to get a loan – whether you get approved or not, your credit score is used to determined this. So it is important to definitely take your credit score seriously. Although there are many ways to help improve your credit score, the easiest way is by having credit cards.