Credit Report Score

Credit report score help to know how credit worthy you have been. Credit report is your personal financial report card in other words it`s nothing but all your credit history. Your credit report can affect your daily life from where you live and work to how much you pay for a loan or insurance. Here's a guide to protecting your financial reputation

Unfortunately many of us do not know our credit score, if you take an approximate you will come to know that only 33 percent of consumers know their credit scores according to Government Accountability Office.

As important as it is to know how much money you have available before you write a check, it is equally important to know your credit score and what is on your credit report. Not knowing these things could cost you money.

You can have a copy of your credit report and one should know where he financial stand at the end year. This credit report keeps all the track of your purchasing and payments of your bills and many other financial matters.

This credit report helps agency to determine whether or not to give you a line of credit or loan you money. As higher the score, the les risk the lender believe you to be. As your credit score climb you interest rate you are offered probably decline.
The credit report lists your each and every financial detail, like the account you have open, even if it contains a zero balance.

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 Reporting And Your Bottom Line

If you have ever been issued a credit card, received a personal loan, obtained a mortgage or held a job, chances are someone is keeping a file on you. This file contains information on how you pay your bills, whether or not you`ve been sued, and if you`ve filed for bankruptcy. Companies that gather and sell this information are called Consumer Reporting Agencies, or CRAs. The three most common are Equifax, Experian and TransUnion.

What`s in a credit report

Congress passed the Fair Credit Reporting Act requiring CRAs to provide correct and complete information to businesses to use in evaluating your applications for credit, employment or insurance. Credit reports are only provided to those with a legitimate business need. CRAs generally report unfavorable information for a period of seven years. Exceptions include bankruptcy information, which can be reported for ten years, and information concerning a lawsuit or judgment against you, which can be reported for seven years or until the statute of limitations runs out, whichever is longer.

When applying for a job with a salary of more than $20,000 or for more than $50,000 worth of credit or life insurance, there is no time limitation for reporting credit information.

Know what`s in your credit report

If you request it, the CRA is required to tell you about the information in your report and, in most cases, the sources of that information. You also have the right to be told the name of anyone who received a report on you in the past six months. If you filed an application for credit and it was denied based upon information supplied by a CRA, you can request a free report within 30 days of receiving the denial. If you have not recently received a denial but still wish to receive a report, you may be charged a reasonable fee. To receive a copy of your report, contact:

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

Equifax
P.O. Box 740241
Atlanta, GA 30374-024
800-685-1111

TransUnion
Two Baldwin Place
1510 Chester Pike
Crum Lynne, PA 19022
800-888-4213

Fixing Credit Report Errors

If you find inaccurate or incomplete information in your credit report, notify the CRA immediately. They are required to re-investigate the items in question. If the new investigation reveals an error, a corrected version must be sent, at your request, to anyone who received your report in the past six months. If the new investigation doesn`t resolve your dispute, request that the CRA include your version or a summary of your version of the disputed information in your file and in future reports. There is no charge for this service if it is requested within 30 days after you receive notice of your application denial.

Fixing a Poor Credit History

Unfortunately, there are no quick or easy cures for a poor credit history. Time is the only thing that will repair your credit report. There is a brisk business among so-called "credit repair" companies which charge from $50 to more than $1,000 to "fix" your credit report. The only information in your credit report that can be changed are items that are actually wrong. If that`s the case, you can fix the errors yourself for free.

Credit Counseling

While only time can fix a poor credit history, there are some organizations that may be able to help if you find yourself confronted by overwhelming money problems. Many of these problems arise from inflation, overuse of credit, faulty planning or a lack of money management. For example, a credit counseling corporation may be an option. These non-profit corporations offer specialized counseling services to over-indebted consumers and handle their money as their agent. The corporations may charge a nominal fee for services provided. A credit counseling corporation is not a lending institution, charity, government or legal institution.

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.