Oct
6
Free Credit Report
October 6, 2011 | Leave a Comment
I remember when I graduated from college, over 20 years ago, I wanted to buy a car before I started my new job. I had had enough. I refused to be seen any longer riding around in a 1980 Ford Pinto. Some may recall that the Pinto had a slight design defect. Its fuel tank was in the rear where all gas tanks belong, however it was exposed. Let’s just say, Pintos’ didn’t handle rear-end collisions very well. Come to think of it, that’s probably why I got such a good deal when I bought it.
I really don’t know what I was thinking. I wasn’t going to start working for a couple of months. If I did buy the car how was I going to pay for it? That wasn’t important. I just wanted a new car. So, I went down to the dealer - test drove a brand new Nissan and told the salesman I wanted it.
The salesman said that he had to run a credit check. I said go ahead that shouldn’t be a problem. He said that if there were going to be any surprises - just tell him now and we could try to work through them. I said that there wouldn’t be any problems just go forward. Why did I say that? Back then, financial responsibility was the last thing on my mind. Sometimes I had money to pay my bills, but most times I didn’t. When I walked off that lot that day, I knew unless there was some divine intervention; I wouldn’t be getting that car.
The next day I went to the dealership and the salesman just shook his head. I didn’t say a word. I just turned around a left. I said all of that to say save yourself some embarrassment. As of September 2005, you are entitled to a free copy from each of the three credit-reporting agencies (Equifax, Experian, Trans Union) every year thanks to the Fair and Accurate Credit Transactions Act. Free report If you don’t want to request your report over the Web, you can also call 1-877-322-8228 or complete and mail in the “Annual Credit Report Request Form” available at www.ftc.gov
About six months later, I bought myself a new car. Let’s just say the Pinto wasn’t cut-out for New England winters.
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About the Author Michael Dawson recently said goodbye to a 20 year career in Engineering, Marketing and Sales to focus on living his dream of financial independence as a full-time trader on his on account. He has also established a financial education company, The Time & Money Group, to encourage others to pursue financial freedom and is publisher of the company’s blog “Breaking the Shackles of the 9 to 5.” His mantra is “Why trade time for money … when you can have both.” http://www.thetimeandmoneygroup.com/blog Make sure to read one of Dawson’s most popular articles: “Saying Good-Bye to the Time for Money Swap” Credit Tip! The credit report plays a significant role in the functioning of consumer credit markets. Since loans are advanced based on the credit reports the chances of loans going bad are minimal.
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Popularity: 21%
Oct
3
Fix Wrong Information In Your Credit Report-TODAY
October 3, 2011 | Leave a Comment
Other than eating, sleeping, and breathing, one of the most important things you should be doing on a regular basis is ensuring that the data in your credit report is accurate. That is such a simple statement, yet it is ignored by the vast majority of consumers, probably due to several factors, such as:
* Consumers seem to accept the fact that errors will “self correct” in a reasonable period of time, where in reality nothing could be further from the truth.
* Consumers don’t know how to find out if there is wrong information on their credit report, which impacts their total credit score negatively.
* Consumers don’t realize that having a low credit score (lower than what they deserve, if the information maintained by the credit bureaus was accurate) can impact a huge number of factors in their everyday lives.
* Consumers don’t realize that studies have shown that the MAJORITY of credit reports on consumers and businesses have errors and inaccuracies.
Your credit score is used by anyone loaning you money such as credit card companies, home loan lenders, auto loan lenders and finance companies. You need to find out what your credit score is before you talk to any lender in case there is something on your report that they may question. Your credit score is the actual number ranging from 300 to 850 that lenders use to judge your creditworthiness and the interest rate they’ll charge you. Having a credit score lower than what you actually deserve could mean the difference between getting approved for a loan or credit card, or being denied. If you are approved, a lower credit score can mean the difference of the lender assessing a 14% interest rate or a 6% interest rate, which can cost you hundreds and even thousands of dollars more at the end of the loan period.
The “big three” credit bureaus are required to give you a free copy of your credit report annually, or any time that you have been denied credit based on information that they provided to a potential lender. It may take some time to get through to the credit bureaus to request a copy of your credit report, but this is well worth your time to do so. Be sure to get a copy of it from all three of them, since some lenders only report to one or two of them. This means that the information on your credit report from one credit bureau is almost certainly not going to be identical to the data from another credit bureau.
If you notice any errors on your report, you should complete a dispute form with the credit bureau. When they send you a copy of your credit report, they will usually include instructions on how to file a dispute for erroneous or inaccurate information. Some experts say that if you are disputing say 5 different items, you should file 5 separate dispute forms so each one can be addressed specifically. There is some merit to that discussion, since the credit bureaus may view a dispute consisting of many items as “frivolous” and not take appropriate action to correct the information.
Another excellent reason for keeping an eye on your credit report is because you will then be aware of any attempts at identity theft. Identity theft is one of the fastest growing crimes of this century, and if someone has stolen your identity to open new accounts in your name, it will likely show up on your credit report. You should take the time to become familiar with identity theft and what you can do about it at Preventing Identity Theft.
Under the Fair Credit Reporting Act, you can dispute information in your credit files with the three credit bureaus, and the creditor is required by law to verify the disputed information. You have the right (and indeed, the obligation) to dispute the completeness and accuracy of information in your credit files. When a credit bureau receives a dispute, they must investigate and record the current status of the disputed items within a “reasonable period of time”, usually defined as 30 days. If the information reported on your credit report cannot be verified by the creditor, the credit bureau is required by law to remove the information.
Check your credit report regularly, at least once per quarter. Even if the creditor misses that 30 day window, they can report the information again later, at which point when you see it appear again, you can (and should) dispute it again. Sometimes, for blatantly wrong information, you may want to contact the creditor directly and find out why they insist on putting inaccurate information on your credit report.
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Jon is a computer engineer who maintains web sites on a variety of topics based on his knowledge and experience. You can read more about Credit Scores at his web site at Credit Reports and Credit Scores and get more information about preventing identity theft at Preventing Identity Theft. Credit Tip! Get a copy of your credit report. Take advantage of the free government credit report from each of the National Consumer Credit Bureaus: Equifax, TransUnion and Equifax.
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Popularity: 22%
Sep
30
What is a Credit Report?
September 30, 2011 | Leave a Comment
For most people having good credit is a necessary part of their financial well being. Your credit history has a large impact on the ability to receive a mortgage, car loan and credit cards. Most of time your credit rating is based and formulated using information that is found on your credit report. If you are new to having credit or finally realized how important credit can be, here is some information on what a credit report is and its importance in the credit process.
A credit report is a document that is used to summarize your financial reliability. Usually credit reports compile information that includes current loans and credit cards you have, your payment history, your outstanding debt and other personal information such as your current and previous address, full name, aliases, and companies or lenders that recently requested your credit report.
Credit reports are a very useful tool for companies and lenders to determine if a person they are either loaning money to or can be providing a job or an apartment for is reliable and stable with their finances. For instance, if you would like to apply for a credit card, when filling out the application, you sign a waiver giving the credit card permission to pull your credit report and analyze it. From this point the credit card company will look at your credit report to see if you have lots of other credit cards, the debt that you owe on those credit cards and if in the past were you late paying the monthly bills for the credit cards.
Credit reports are instruments used by lenders and other entities to protect themselves against risk. While a credit report with lots of negative info can be bad for the person that is applying for a loan or apartment, credit reports are in most cases very helpful for consumers that keep up on their payments and are financially responsible. These consumers are able to acquire import loans such as mortgages and business loans that can help them reach their life goals.
Because credit reports are so important to the process of acquiring loans and a big factor in renting an apartment or applying for a job, it is extremely important that consumers know as much as possible on how credit reports are used, how they are scored and strategies on how your credit report can show you as being financially responsible.
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Credit Tip! Also if you have been denied credit on the basis of information in a credit report, you are entitled to a free copy of your credit report from the credit bureau that supplied the credit report.
Connie Barker is the owner of a Credit Report website. |
Popularity: 22%
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