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"Your Credit"

Articles:

How is your credit calculated?

The Fair Credit Reporting Act

What is a good credit score?

How to fix common credit report problems.

How to raise your credit score.

Where to get your credit report online.

The Fair Credit Reporting Act and Building a Better Credit Report

      Over the course of your lifetime, if you have ever applied for a credit card, personal loan or insurance, it is a fair bet that there is a file on you, and it’s called your credit report. It is complete with information like where you live, how you pay your bills, if you have ever been sued and if you have ever filed bankruptcy. The idea of the game is to have a good credit report which in turn means that it will be easier to get loans and lower interest rates which mean lower payments. The information in your credit report is sold to creditors, insurers, employers and businesses with a legitimate need for it.

      According to the Fair Credit Reporting Act (FCRA) the information in your credit report is available to you; you merely have to ask for it. The FCRA promotes that the information is accurate and fair. Consumer reporting companies must tell you everything that is in your report and provide you with a list of everyone that has requested a copy of your report within the past year. If the request is related to employment then they will provide all requests within the past two years.

      Consumer reporting companies collect and sell four types of information. First is identification and employment information. This will include your name, birth day, Social Security number, employer and spouse’s name where applicable. They sometimes also provide information on your employment history, home ownership, income and any previous addresses. Next would be your payment history. All your accounts with different creditors are listed showing how much credit was extended and if you have paid your bills on time. This may also include information relating to past due accounts and collection agency activity. Inquiries to your credit report are also listed. Consumer reporting companies must maintain a record of all creditors who have inquired about your credit history. Bankruptcies, foreclosures and tax liens will also appear on your report.

      Should you find inaccurate information on your credit report both the consumer reporting agency and the information provider are responsible for correcting the information. You must contact the reporting company and information provider, in writing if you seen any inaccurate information.

      When reporting inaccurate information to the reporting agencies, you must include copies or all documents, (not originals) that support your claim. You should include your full name and address and should clearly identify each item that you are disputing. Be sure to state the facts and explain why you are disputing the information and request that the information be corrected or deleted. It would be a good idea to include a copy of your report with all disputes circled. All documents should be sent certified mail with a return receipt requested. Be sure to keep copies of everything that you have sent.

      The reporting agencies must investigate any claims this is usually done within 30 days. They will forward any relevant data that you have provided to the organization that originally provided the information to investigate and review. They will then report the results to the consumer reporting agency. If they find that the information was incorrect, they must notify all three nationwide consumer reporting agencies so that they can put the correct information in your file. Once the investigation is complete you will be notified in writing and given a free copy of the corrected report if the dispute results in a change.

      If the investigation does not end with a resolution to your dispute, you can ask that a statement of the dispute be included in your file and in future reports. You will most likely have to pay a fee for this service.