Do You have Negative Credit Information in Your Credit Report?

If there is inaccurate or incomplete information in your credit report:

Contact both the credit reporting agency and the company that provided the information to the Credit Reporting Agency (CRA).

Tell the CRA in writing what information you believe is inaccurate.

Under The Fair Credit Reporting Act, the information provider is required to investigate and report the results to the CRA. If the information is found to be incorrect, it must notify all nationwide CRAs to correct your file. If the investigation does not solve your dispute, ask that your statement concerning the dispute be included in your file. A notice of your dispute must be included anytime the CRA reports the negative item.

If the information is accurate, only time, hard work, and a personal debt repayment plan will improve your credit report. Credit repair companies advertise that they can erase bad credit for a hefty fee. Don't believe it.

Under the Credit Repair Organizations Act, credit repair companies can't require you to pay until they have completed promised services. They must also give you:

 - a copy of the "Consumer Credit File Rights Under State and Federal Law" before you sign a contract;
 - a written contract that spells out your rights and obligations; and
 - three days to cancel without paying any fees.
 - Some credit repair companies promise to help you establish a whole new credit identity. You can be charged with fraud if you use the mail or telephone to apply for credit with false information. It is also a federal crime to make false statements on a loan or credit application, to give a false Social Security number, or to obtain an Employer Identification Number from the Internal Revenue Service under false pretences.

If you have lost money to a credit repair scam, contact your state or local consumer affairs office or the National Fraud Information Center.

Out of Control Debt

Counseling services are available to help people having trouble budgeting money and paying bills. Credit unions, cooperative extension offices, military family service centers and religious organizations are among those that may offer free or low-cost credit counseling.

Local, nonprofit agencies that provide educational programs on money management and help in developing debt payment plans operate under the name Consumer Credit Counseling Service (CCCS). They are members of the National Foundation for Consumer Credit (NFCC). To locate the agency closest to you, call 1-800-388-2227 or visit nfcc.org.

Several national nonprofit organizations also provide information and assist people with debt problems via the phone and Internet.

American Consumer Credit Counseling.
InCharge Institute of America.
Money Management International.
Myvesta.

Typically, a counseling service will negotiate lower payments with your creditors, then make the payments using money you send to them each month. The cost of setting up this debt-management plan is paid by the creditor not you. Ask these questions to find the best counselor for you:

What services do you offer? Look for an organization that offers budget counseling and money management classes as well as a debt-management plan.

Do you offer free information? Avoid organizations that charge for information or make you provide a lot of details about your problem first.

What are your fees? Are there set-up and/or monthly fees? A typical set-up fee is $10. If you're paying a lot more, you may be the one who's getting set up.

How will the debt management plan work? What debts can be included in the plan and will you get regular reports on your accounts?

Can you get my creditors to lower or eliminate my interest and fees? If the answer is yes, contact your creditors to verify this.

What if I can't afford to pay you? If an organization won't help you because you can't afford to pay, go somewhere else for help.

Will you help me avoid future problems? Getting a plan for avoiding future debt is as important as solving the immediate debt problem.

Will we have a contract? All verbal promises should be in writing before you pay any money.

Are your counselors accredited or certified? Legitimate credit counseling firms are affiliated with the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.

Unfortunately, honest credit counselors have a lot of rivals who are more interested in taking your money than helping you. They can do more harm than good. Red flags are:

Big upfront fees. A reputable credit counseling agency will send free information about itself and the services it provides without requiring you to provide any details about your situation.

Unrealistic promises. Some companies falsely claim they can solve problems for pennies on the dollar or remove negative information from your credit record.

Check with your local consumer protection agency and the Better Business Bureau to see if any complaints have been filed about the company.

Credit report is your financial proof

Credit report is a legal statement of your credit history. Credit report shows actual where do you stand in your financial dealing and it has all the detailed information about a consumer like address, date of birth, telephone number, method of paying bills, and also the information`s like did you ever been arrested, any legal dispute civil judgment, bankrupt and many more.

One can easily get their credit report thanks to FACT Act, under this Act a consumer can get a free copy of their credit report which can be helpful for them in all their financial dealing like purchasing furniture, house, vehicle and all others. Some time it may be problem for you as it has all your financial history.

At a time one can have the credit report from all the three legal financial companies. It`s not a big thing to get your credit report online as all three financial companies have their own legal websites. One has to fill up their online form which they have provided with all your correct information so that you will be able to get your credit report as soon as possible. Make sure you enter all the correct details as some of them won`t give their credit card number correctly. If it happens then your form will get rejected and will not be accepted by any of three sites.

You can find many online sites those who are providing you with credit report but it`s always good to have a copy of your credit report from a legal financial sites.

Anna Josephs is a freelance journalist having experience of many years writing articles and news releases on various topics such as pet health, automobile and social issues. She also has great interest in poetry and paintings, hence she likes to write on these subjects as well.

Credit Report form Three National Credit Bureaus

Today any resident can have one free copy a year of their credit report from each of the three national credit bureaus. The annual free credit reports are mandated by to reduce the incident of identity of theft by encouraging consumers to regular check their credit histories for suspicious activity, such as a new credit card account that was never requested.

The three national credit bureaus are competing companies. The gather all the details of their consumer separately, they don`t share their consumers data with each others. Though the format of credit report of three national credit bureaus in different but they all has got the same information`s about their consumers like former address, employers, fraud alert, recent inquiry by credit generator, and all other public records on which the credit report is based on.

The trade lines includes the credit limits, balances owing, the payment histories of loan , credit card and all other accounts as reported by the subscribes to the respected bureaus whether Experian, Equifax or Trans Union.

As this bureaus don`t share their data. It`s common to find a difference in the data, as well as the scores for the same consumer. Many of companies are members of one or two bureaus but not all the three.

Consumer should be prepared. Getting the credit report may not be easy as number of consumers have complaint about the programs it`s because many times consumer won`t provide all the correct information. Avoid all the incorrect information and get your credit report.

Anna Josephs is a freelance journalist having experience of many years writing articles and news releases on various topics such as pet health, automobile and social issues. She also has great interest in poetry and paintings, hence she likes to write on these subjects as well.

Consumer Report

Some financial advisors suggest that you periodically review your credit report for inaccuracies or omissions. This could be especially important if you're considering making a major purchase, such as buying a home. Checking in advance on the accuracy of information in your credit file could speed the credit-granting process.


Getting Your Credit Report

If you've been denied credit, insurance, or employment because of information supplied by a CRA, the FCRA says the company you applied to must give you the CRA's name, address, and telephone number. If you contact the agency for a copy of your report within 60 days of receiving a denial notice, the report is free. In addition, you're entitled to one free copy of your report a year if you certify in writing 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 inaccurate because of fraud. Otherwise, a CRA may charge you up to $9.00 for a copy of your report.

If you simply want a copy of your report, call the CRAs listed in the Yellow Pages under "credit" or "credit rating and reporting." Call each credit bureau listed since more than one agency may have a file on you, some with different information. The three major national credit bureaus are:

Equifax, P.O. Box 740241, Atlanta, GA 30374-0241; (800) 685-1111.

Experian P.O. Box 2002, Allen, TX 75013; (888) EXPERIAN (397-3742).

Trans Union, P.O. Box 1000, Chester, PA 19022; (800) 916-8800.

Correcting Errors

Under the FCRA, both the CRA and the organization that provided the information to the CRA, such as a bank or credit card company, have responsibilities for correcting inaccurate or incomplete information in your report. To protect all your rights under the law, contact both the CRA and the information provider.

First, tell the CRA in writing what information you believe is inaccurate. Include copies (NOT originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request deletion or correction. You may want to enclose a copy of your report with the items in question circled. Your letter may look something like the sample below. Send your letter by certified mail, return receipt requested, so you can document what the CRA received. Keep copies of your dispute letter and enclosures.

CRAs must reinvestigate the items in question--usually within 30 days--unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the CRA, it must investigate, review all relevant information provided by the CRA, and report the results to the CRA. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide CRAs so they can correct this information in your file. l Disputed information that cannot be verified must be deleted from your file.

If your report contains erroneous information, the CRA must correct it.

If an item is incomplete, the CRA must complete it. For example, if your file showed that you were late making payments, but failed to show that you were no longer delinquent, the CRA must show that you're current.

If your file shows an account that belongs only to another person, the CRA must delete it.

When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the provider.

Also, if you request, the CRA must send notices of corrections to anyone who received your report in the past six months. Job applicants can have a corrected copy of their report sent to anyone who received a copy during the past two years for employment purposes. If a reinvestigation does not resolve your dispute, ask the CRA to include your statement of the dispute in your file and in future reports.

Second, in addition to writing to the CRA, tell the creditor or other information provider in writing that you dispute an item. Again, include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider then reports the item to any CRA, it must include a notice of your dispute. In addition, if you are correct-that is, if the disputed information is not accurate-the information provider may not use it again. Accurate Negative Information When negative information in your report is accurate, only the passage of time can assure its removal. Accurate negative information can generally stay on your report for 7 years. There are certain exceptions:

Information about criminal convictions may be reported without any time limitation.

Bankruptcy information may be reported for 10 years.

Credit information reported in response to an application for a job with a salary of more than $75,000 has no time limit.

Credit information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.

Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Criminal convictions can be reported without any time limit.

Adding Accounts to Your File

Your credit file may not reflect all your credit accounts. Although most national department store and all-purpose bank credit card accounts will be included in your file, not all creditors supply information to CRAs: Some travel, entertainment, gasoline card companies, local retailers, and credit unions are among those creditors that don't. If you've been told you were denied credit because of an "insufficient credit file" or "no credit file" and you have accounts with creditors that don't appear in your credit file, ask the CRA to add this information to future reports. Although they are not required to do so, many CRAs will add verifiable accounts for a fee. You should, however, understand that if these creditors do not report to the CRA on a regular basis, these added items will not be updated in your file.

Can You Really Get A Free Credit Report?

We`ve all seen the ads for "free credit reports" in our email and on various websites.

But are most free credit report offers real?

Unfortunately, most are not actually free. In fact, most require a monthly "credit monitoring" or other fee – one that most people really don`t need.

Under the Fair and Accurate Credit Transactions Act (FACT Act) consumers can request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies – Experian, Equifax, and TransUnion.

To get your copy, visit AnnualCreditReport.com and you can order your credit report online. Or if you prefer, you can make your request by phone or mail.

Other websites that claim to offer "free credit reports," "free credit scores," or "free credit monitoring" are not part of the legally mandated free annual credit report program.

So don`t get taken by these other offers.

What should you do if you find any wrong or damaging information on your credit report?

Contact the credit bureau that issued the report in writing (you can also file a dispute online.) Be specific about what you think should be removed, and provide an explanation. By law, the credit reporting agencies must investigate your dispute within 30 days, and notify you in writing – if the information cannot be verified as correct, it must be removed.

One way to monitor your own credit throughout the year is to order one credit report at a time, wait a few months, then order the next. While not all creditors report to each of the 3 major credit bureaus, this will give you a good idea about any changes in your credit.

What about your credit score?

Unfortunately, your credit score is not considered a part of your free credit report, and must be purchased separately. In most cases you do not need to order your credit score frequently, although it is a good idea to know your score before you apply for any major credit purchases.

Does credit repair work?

Credit repair does work. The credit reporting agencies must remove any items that are incorrect. And there is nothing that prevents you from disputing any item on your credit report that you consider to be damaging. While the credit reporting agencies have no obligation to remove any items just because it hurts your credit, many individuals are able to get damaging items removed from their credit report, and improve their credit score, just by asking for the item to be verified.

But be careful – there are many companies that will charge you a fee, basically to do what you can do on your own. And beware of any company that offers to create a new identity or credit file for you, as this is fraud, and can get YOU in trouble.

The best way to protect your credit is to be an informed consumer!

3 Free Credit Reports For You

If you were to tell someone that they can have a certain item for free, more than likely their response would be, "what`s the catch?" In the case of credit reports there is no catch, you can now get a free copy of this report through the three credit reporting agencies: Equifax, TransUnions, and Experian. Let`s take a look at the law and how you can benefit from it.

An amendment to the federal Fair Credit Reporting Act (FCRA) requires the three national credit reporting agencies to provide one free copy of your credit report to you annually. Beginning on December 1, 2004 and culminating on September 1, 2005, the Federal Trade Commission is requiring that these agencies offer reports on a rolling, phase in basis. In other words, on December 1, 2004, if you live in certain western states you became eligible at that time and every three months later additional states were added. By September 1, 2005, residents of all states are eligible.

Fortunately for consumers, you need not contact the three reporting agencies separately to obtain your free credit report. You can order right online at annualcreditreport.com; or by calling 877-322-8228; or by completing the Annual Credit Report Request Form and mailing it:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

The form is available online where you can print it out and mail it in: ftc.gov/credit.

If you need copies more often, you can contact the three reporting agencies and request copies. You will pay for this service.

To buy a copy of your report, contact:

Equifax
800-685-1111
equifax.com

Experian
888-EXPERIAN (888-397-3742)
experian.com

Trans Union
800-916-8800
transunion.com

There are also private companies who will obtain all three copies of your credit report for you as well. There is a fee involved, but you may find their services to be less of a hassle than contacting the three companies separately.

So, how can you benefit from the law? By ordering copies of your reports from the companies on a four month rotating basis. Most consumers will find this plan to be sufficient and it will allow for you to compare/contrast the reports of each agency. Of course, if you already suspect fraud you will want to order all three reports at once and notify each agency to place a "fraud alert" in your credit file.

All in all, the new law is a big win for consumers. Take advantage of this "windfall" as soon as you become eligible to do so.