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The Truth About Credit Reports
What is a credit report?
A credit report is a record of how you have
borrowed and repaid debts. Creditors usually
look at this report to decide whether
or not to grant credit and how much to
charge.What should I look for in my credit report?
You should look for the following possible
problems:Is there any old information?
Look for:
* Credit information older than seven
years
* Bankruptcy information older than 10
years
This is considered "old" information and
should no longer be in your report.Are there any errors?
If you think there is an error, like an account
that is not yours, you should fill out
a dispute form or write a letter explaining
the problem. Attach copies of any supporting
evidence, if you have it. Make
sure to send the form or letter to the attention
of the agencies that issued the
reports containing the error.
The agency must then investigate your
report and get back to you, usually within
thirty days. (They can decline your request
only if they decide that it is frivolous.
They must notify you of this decision).
The agency must notify you within
five days of completing the investigation
and must include a copy of your credit
report, if it has been revised. If the
agency does fix the error, order another
report in a few months to make sure the
error stays fixed.Will this solve all of my credit problems?
No. Sometimes people get into trouble
with credit. The problems will usually
show up on your report. The best thing to
do in this situation is to start rebuilding
your credit. And if you apply for new
credit, shop carefully. Try to get the best
terms possible.What if I fix everything and I'm still turned down for credit?
It is possible that you are being illegally
discriminated against. It is against the
law for creditors to base decisions to extend
or deny credit on sex, age, race,
color, religion, national origin, marital
status, receipt of public income or assistance
or the exercising of your rights under
consumer protection laws. You
should consult an attorney immediately if
you think this has happened to you.What kind of information can be included in my report?
Most commonly:
* Identification and employment data
* Payment history on your accounts
* A listing of all creditors who have recently
requested copies of your report
* Public record information [such as
bankruptcies, foreclosures, court judgments]
Credit reports sometimes include credit
scores. A credit score is a number, usually
from 300 to 850. The higher the number, the
better. Creditors use these scores to help
them evaluate the risk of lending to you and
to decide how much to charge for credit. You
may request a credit score from credit reporting
agencies, but you may have to pay for
it, depending on the type of transaction involved.Who can see my credit report?
Only certain people are allowed to look at
your report, such as:
* Creditors, when you apply for credit or
for a loan.
* Employers, but only under certain circumstances
and most times you must
give them written authorization.
* Government agencies, including those
trying to collect child support.Where can I go for help?
Call Us 718-766-5193Is it important to keep track of my credit history?
IT IS IMPORTANT TO KEEP TRACK OF
YOUR CREDIT HISTORY BY ORDERING
YOUR REPORT
There are three major credit reporting agencies
and many other small ones. You should
order your report from at least the "Big Three."
These companies are:
Equifax / Experian / Trans Union
As of September 1, 2005, consumers are entitled
to a free annual credit report from each
major credit bureau. You can also obtain a
free report if:
? You have been denied credit within the
past 60 days.
? You are unemployed and will be applying
for a job within the next 60 days
? You receive public assistance, or
? You have reason to believe that your report
contains inaccurate information due to
fraud.
Victims of identity theft also have rights to free
reports. These agencies may charge you up to
$9.50 for additional reports during the year.
HOW DO I ORDER MY REPORT?
You can order your report by phone, on-line, or
by mail. To order by phone call 877-322-8228;
online, click on www.annualcreditreport.com;
or complete the Annual Credit Report Request
Form (available on the above website) and mail it to:
Annual Credit Report Request Service, P.O.
Box 105281, Atlanta, GA 30348-5281. You
can also get your report by sending a written
request which includes your full name, date of
birth, social security number and residences
for the past five years. Each company has a
toll free number that you can call for more information:
EquifaxShould I use a credit repair company for help?
Beware of credit repair companies.
There are many things you can do on
your own for free to "fix" your credit or to
rebuild your credit.
BEWARE OF THESE COMMON
CLAIMS MADE BY CREDIT REPAIR
COMPANIES:
"We can erase bad credit"
The truth is that no one can erase bad
credit information from your report, if it
is accurate.
"Only we can remove old or
inaccurate information."
The truth is that if there are legitimate
errors on your report or old information,
you can correct the report yourself for
free.
"Legitimate error" means that the information
is inaccurate, not just that it is
information you don't like.
"Old information" means credit information
older than 7 years, or bankruptcy
information older than10 years.
"The bad information on your
report is accurate, but we'll erase it
anyway."
The truth is that if this means lying to
the credit reporting agency, it is illegal.
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