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In the world of finances it is all about
managing debt to maximize one's buying power.
Since a consumer's credit score has a direct
correlation on any financing or loan
authorization, reviewing the accuracy of a
credit report is a consumer savvy. Consequently,
managing one's personal finances for a better
credit rating is critical.
Did you know that when financial institutions
consider authorizing loan approval, they review
your payment history? Even if you were
unemployed when you were inundated with medical
bills, the balance will appear on the credit
report.
FACT: Over thirty-five percent of American
consumers impaired with a low credit score --
due to expensive hospital and medical bills.
About Your Credit Report Card
A credit report is very similar to an adult
life quality report card. It details such
personal information as:
- Where a consumer works
- Where the individual resides
- Have you ever been convicted of a
crime
- Has the individual ever been involved in
a lawsuit or claim
- How you pay your bills
Credit reports or your report card are kept
by organizations referred to as consumer
reporting agencies (CRAs). These credit bureaus
collect, compile and sell consumers credit
documents to businesses. Banks and lending
institutions approve applications based on
credit. Certain insurance companies and
employers evaluate one's credit before writing a
policy or extending employment.
Subsequently, Americans should always review
their credit score to ensure the information is
accurate. Financial advisors recommend that all
consumers should report any updated, omissions
or inaccuracies. Specifically, for the person
planning to apply for a mortgage, auto loan or
other personal loans (secured or non-secured) an
exact truthful credit report is important.
Moreover, the Fair Credit Reporting Act (FCRA)
authorizes consumers the opportunity to submit
corrections.
Another aspect of managing one's finances
with a better credit score is by checking the
accuracy of information detailed on the credit
file. Nonetheless, it may drastically accelerate
the credit-granting process.
On the other side of the spectrum, consumers
who are denied credit have the right to acquire
the following information:
- The credit bureau's name (CRA)
- The CRAs address and all contact
information
- A copy of a free report within 60 days of
a denial
- In lieu of fraud, being on welfare or
unemployment, consumers a allowed one
complimentary copy of their credit
report
Generally, the cost of a credit report starts
at nine dollars.
Credit Reporting Agencies and Credit
Bureaus
There are three major credit bureau agencies
(Experian, Trans Union and Equifax). All
agencies may have different information about a
consumer. To compare and check all your credit
files from all the top agencies, here is their
address:
Experian
P.O. Box 2002,
Allen, TX 75013
(888) EXPERIAN (397-3742)
Trans Union
P.O. Box 1000
Chester, PA 19022
(800) 916-8800
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
(800) 685-1111
After you obtain a copy of your credit
report, the first step to managing your finances
begins with noting any discrepancies. Then,
protect your rights under the FCRA Act by
contacting the source of the erroneous
information and the credit reporting agency by
writing a letter.
Sample Dispute Letter
Date
(Your Information)
Name Address City, State, Zip Code
Complaint/Dispute Department Name of Credit
Reporting Bureau Address City, State, Postal
Code
To Whom It May Concern:
Attached you will find a copy of a report I
received. The items of dispute are circled on
the attached copy of the report I received.
1.) (Detail the disputed items in a list with
the credit account, name of the creditor the
type of item, such as credit account or judgment
etcetera)
This above item is (inaccurate) because
(detail what item is inaccurate or incomplete
and why). I am requesting that the above named
item be removed or corrected (or state the
specific change).
Attached you will find copies (describe any
enclosures that depict a record of payments or
any court documents) which demonstrate my
position. Please research this issue and (remove
or amend) the disputed item(s) as soon as
possible.
Regards,
Your name
Enclosures: (List what you are enclosing)
Remember to include duplicates (only) of the
documents that corroborate the correction.
Facts about Accurate but Negative Credit
Report Information
There are scenarios where negative
information may be accurate. Unfortunately,
there is a general period of time that the
information must remain on a credit report.
Usually, the time limit is seven months; however
the following list details the exceptions:
- Any information regarding criminal
convictions may be reported for an unlimited
time span.
- Any credit information provided as a
response to an application for a salary
position worth over $75,000 does not have a
time limit.
- Bankruptcy information can remain on a
report up to ten years or more.
- All credit information reported as a
result of an application worth over $150,000
of credit or life insurance does not have a
limit.
- Any unpaid judgments or lawsuits have a
credit report life of seven years or more --
until the statute of limitations has expired
(whichever is longer).
In summation, despite negative accurate
information, paying your bills on time and
correcting any errors is a good way to manage
your finances for a better credit rating.
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