Credit
Repair Companies and Credit Reports
WHAT SHOULD I LOOK FOR IN
MY REPORT?
You should look for the following
possible problems:
ARE
THERE ANY ERRORS?
If you think there is an error, 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.
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.
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.
WHERE
CAN I GO FOR HELP?
Consult your local legal services office,
volunteer lawyers project (often
coordinated through the local bar
association), or local department of
consumer affairs.
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.
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)
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 only if you
give them written authorization.
Government agencies, including those trying to collect child support.
IT
IS A GOOD IDEA 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 (formally TRW)
Trans Union
These agencies may charge you up to $9.00 for the report. The report
is free if you have been denied
within the past 60 days. You can also get one free report in any
12-month period if you are
unemployed and will be applying for a job within the next 60 days,
if you are on welfare, or if you
have reason to believe that your report contains inaccurate information
due to fraud.
HOW
DO I ORDER MY REPORT?
To order from the "Big Three" companies, you should send
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:
EQUIFAX
www. eau ifax.com
EXP ER IAN
www.experian .com
TRANS UNION CORPORATION
www.transunion.com
SHOULD 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 than 10
years.
"The bad information on your report is
accurate but we'll erase it anyway"
The truth isa that if this means lying to the
credit reporting agency, it is illegal.
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