Tag Archives: Credit

Fair Credit Reporting Act

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Article by Nicole Roberts

The Fair Credit Reporting Act, often referred to as the FCRA, is a federal law that governs credit reports and the companies and individuals that deal with them. This includes the credit reporting agencies, the creditors that report to them and consumers. If you are trying to repair your credit, this credit act can be an invaluable tool.

A CBS News report found that as many as 79% of consumer credit reports contain errors. Minor errors such as spelling variations of your name have no effect on your score. However, more serious errors such as inaccurate balances can have damaging effects.

The first step in credit repair is getting a copy of your credit report from each of the credit reporting agencies. The Fair Credit Reporting Act gives consumers several options to get these reports for free. If you are denied credit or sustain adverse action as a result of your credit file, you are eligible for a free report.

Individuals who fall within certain categories are also eligible. This includes those that suspect fraudulent activity on their credit, those receiving public assistance and those unemployed, but planning to seek work within 60 days. Finally, the credit act allows all consumers a free copy of their credit report annually.

If you find errors in your report, the FCRA also gives you an option to correct them. You can send a dispute letter to the credit reporting agency. Once your letter is received, the credit reporting agency must investigate the error by contacting the company that furnished the information. If the company confirms the error, it will be corrected and you will receive an updated copy of your report.

You have the option to dispute with the company reporting to the credit reporting agencies as well. Under the Fair Credit Reporting Act, they are restricted from reporting information which they know or have reason to believe is untrue. If you dispute the information they are reporting, you can send a letter detailing what information is inaccurate, why you believe it is inaccurate and documents supporting your dispute.

The credit act requires they investigate your dispute, which includes reviewing the information you provided. If the information on your credit reports is in fact erroneous, they must submit an update to the credit reporting agencies with the correct information.

When sending letters to credit reporting agencies or the companies reporting to them, it is important to document your disputes. This includes making a copy of letters and any supporting documents for your records and sending the dispute via a traceable mailing method. Certified mail return receipt requested is an inexpensive mailing method for this purpose.

If you are a victim of identity theft, the credit act can help. Once you notify the credit reporting agency, they can place a fraud alert on your file. This allows you a free copy of your credit report and also requires anyone trying to offer credit to make sure that it is really you that is applying. The act also mandates a block on the identity theft entries.

With the Fair Credit Reporting Act, you don’t have to live with erroneous and inaccurate information on your credit report. By utilizing the options within the act, you can repair your credit and restore your credit rating.

What to do about negative Bank of America credit report

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Article by Ask Bill

You were in the process of applying for a loan or refinancing and you obtained your Bank of America credit report but saw a negative comment on it. You are now wondering what you should do about your Bank of America credit report and the negative comment. You checked with the bank to find out why you got a derogatory comment on your report but it could not give you a good explanation. As far as you can remember, you do not think you did anything to warrant a negative comment on the report. So what next? Below are the steps to take if you think that the negative comment should be removed so that it does not mar your credit score. You must always bear in mind that the credit report may not be an accurate measure of your finances and credit history as it only takes into account your financial situation in the most recent 60 to 90 days. If it makes you feel better, you will be glad to know that at least a quarter of the reports requested from credit reporting agencies end up in dispute and a quarter of the disputes are accurate. Also according to the Fair Credit Reporting Act (FCRA), consumer credit reporting companies are required to report accurate information and you may dispute any inaccuracy you noticed in your report. Now, the steps you could take to dispute your report are: 1. You need to obtain your free credit report either rom Equifax, Experian or TransUnion. You can get the free report once a year. You can obtain your report through the Annual Credit Report request service. You are also allowed to request for a report from each of the company. To obtain the report, you will need to provide your full name, date of birth, current address and Social Security number. However, the information required by each company varies. 2. Once you get the report, check it thoroughly for errors such as your name, social security number and your current and previous addresses. You need to ensure these information are accurate as there could be mistakes made in your report. 3. Take steps to correct the mistakes in your report by writing to the consumer credit reporting company and informing it about the error or inaccuracy. You may need to list out the information in dispute and then make a request that it is removed or corrected. The consumer reporting company will then investigate your disputes within a 30-day period. Once the consumer reporting company has completed its investigation, it may send you a letter to inform you of the results. It may also send notices to anyone who may have received your report in the past six months. So, in essence, if you had applied for a Bank of America refinance loan three months ago and it was rejected due to the mistakes in your credit history report, this may help you in your future application. 4. Finally, you may submit your dispute in writing to the creditor or other information provider. To do that, you may need copies of the documents to support your claim of inaccuracy. Bank of America has an address where you can submit your dispute. When it reports the item to a consumer reporting company, it may need to include a notice of your dispute and if it is true that the information in the report is inaccurate, then the item will be removed. Bank of America is one of the nation’s top lenders and when you try to apply for a loan, your financial report card or credit history is an important factor that the lender looks at. That’s because the lender wants to know more about your financial background and it needs to know whether you are able to repay the loan you plan to take from it. So, when you apply for a Bank of America refinancing, the information that credit reporting agencies will collect to make up your financial report card includes all your personal information, your credit accounts and reports from your creditors, a list of those who had asked for your report and public record such as foreclosures, lawsuits, liens, judgments and bankruptcies. Having a healthy, good, financial background is essential to obtain approval for loans. So if you do see any mistakes in your credit report, make a point to dispute it and have it removed.

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Understanding a Credit score Report

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Article by Susan Smitherson

Acquiring a credit report is an excellent technique to begin taking control of your financial future. It’s really useful that you simply review your credit score report yearly, not only to pay attention to your standing with creditors however to additionally maintain abreast of errors and fraud. However, once your report arrives you will have trouble making sense of it. How are you to read and perceive a credit report? There are three main credit score reporting businesses that subject credit score bureau reviews; Experian, TransUnion and Equifax. It is suggested that you simply receive reports from all three credit report companies as they most probably include various data since collectors subscribe to agencies on a purely voluntary basis. The credit reviews offered by each of the different bureaus may present considerably differently however generally speaking the knowledge shall be damaged down in much the identical way. There are 4 major parts to the credit score report: personal profile, credit historical past, public information and inquires. Check each section fastidiously for any errors. Observe any errors it’s possible you’ll uncover on a separate piece of paper as you read over your report.

Personal Profile:

At the top of the credit report one can find all your primary information reminiscent of your full identify, current and previous addresses and employers, social safety quantity, and date of birth. Your partner’s title can also seem if applicable. As well as, chances are you’ll discover several variations of your name listed. This may happen when creditors file the data incorrectly. These discrepancies are usually left in your credit score report. It is vital nonetheless, to make sure that your deal with is correct. An incorrect address might provide you with a warning to a possible identity theft.

Credit Historical past:

The following part is your credit score history. This provides you with an itemized listing of your current energetic, previous closed accounts and their balances or arrears. Listed first is the identify of the creditor and your account quantity for every invoice– generally the account numbers could appear partially obscured for safety purposes. These debts could embody actual estate mortgages, bank cards, car loans, or medical bills. There can be a column for identifying the character of the account; Joint, Individual, Undesignated, Approved Person, Terminated, Maker, Co-signer or Shared. There will even be a notation of the date when the account was opened, variety of months the account cost history has been reported and date of final activity. The report will present your high credit limit or the utmost you might be allowed to borrow, if applicable. There’s a column for Terms which indicates the variety of instalments or month-to-month payments remaining on the account.

The next few columns will present the steadiness remaining on the account, any past due amounts and the status of the accounts. There are two varieties of accounts; installment and revolving. An Installment account implies that there are mounted funds and a selected ending date, reminiscent of with an automobile loan. A revolving account is one with no fixed ending date as with bank card debts. Collectors prefer to see few revolving debts.

The credit score report will point out the several types of accounts and also might assign it a numerical ratings system. You may see such symbols as R1, R2, R3 or I1, I2, I3.The R or I signifies Revolving or Installment and the numbers point out the payment historical past of the account as follows;

zero- account hasn’t been used but 1- paid as agreed 2- 30 plus days past due three- 60 plus days late four- ninety plus days past due 5- 120 plus days overdue 7- Collection account or bankruptcy 8- Repossession or foreclosure 9- Charged off or unhealthy debt

The credit report can even present a report of any debts which have been turned over to a set agency. It will show the date the collection was reported, the name of the corporate dealing with the collections and the corporate or lender that the loan was originally issued with and the balance remaining on the account.

Public Information:

These are reviews obtained from native, state and federal courts. They will point out information of bankruptcies, tax liens and monetary judgments. Overdue baby support information might also be shown. These public information will stay a part of your credit score history for seven to 10 years and reflect negatively in your complete credit score score.

Inquiry Part:

This part reveals any events that have obtained a duplicate of your credit report over the last two years. There are typically two sorts of inquires, arduous and soft. A tough inquiry is one initiated by you, whenever you apply for a mortgage or fill out a credit score application. A smooth inquiry comes in three kinds; companies that want to give you promotional purposes for credit score, present collectors that are monitoring your account or credit score bureau inquires requested by you, the consumer. These mushy inquires don’t show up on credit stories that companies receive, only on copies offered to you. Though many lenders will view too many inquiries in your report as detrimental, it is very important notice that two or extra ‘arduous’ inquires within a 14 day interval depend as just one inquiry.

Credit score Rating:

The credit report may reveal your credit score. A credit rating scores is a means of calculating an individual’s credit score threat to find out how probably they’d be to make good on a loan. The rating is a three digit number ranging between 300 and 850. The higher your rating, the better it displays on you as a borrower. A superb credit rating rating will enable you to negotiate for higher interest rates.

Disputes:

What when you ought to discover an error on your credit score report? Upon getting discovered an error, contact the credit score bureau that issued the credit score report and state in writing what you found to be inaccurate. You will see the contact information listed on the high of your credit report. The credit score reporting companies must re-investigate the claim inside 30 days. They will then contact the social gathering that submitted the merchandise and try and resolve the dispute as shortly as possible. Bear in mind, you could have the fitting beneath the Truthful Credit Reporting Act to dispute any inaccurate or fraudulent data which will seem on your credit score report, and may accomplish that in a well timed fashion. Once you study to read and understand a credit score report, you might be moving towards a safer financial future. Obtain your report at this time!

So you see getting a free credit report might be simple and beneficial however one should always be extra cautious on this in order to reap the full benefits of the report. If you or anyone is in the market to receive a free credit report it is worth taking a look at this site that is offering a Free Credit Report they offer more tools and helpful information so feel free to visit CheckFreeCreditScore.net

Credit Repair Tips – Disputing Credit Report Errors

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Article by Jeff Ragan

As you no doubt realize, your credit report contains a great deal of personal information about you. For example it has a history of your addresses over the past several years, if you pay your bills on time, any lawsuits you may have been involved in, arrests and if you have filed bankruptcy in the past. All of this information is collected and then sold by the 3 major credit companies to many different places if you allow it and they make the request. If any of this information is incorrect, you may need to use the credit repair tips – disputing credit report errors.

One of my first credit repair tips in this article is, do not authorize people or companies to pull your credit report unless you have very good reason for doing so. If you are applying for credit, this is a good reason. This would include things like opening a credit card account applying for an auto loan or mortgage etc. The information is needed for your creditor to make a decision and determine your interest rate.

Now-a-days you have to allow insurance companies to see your report before they give you a quote on auto insurance. How your credit score affects the way we drive is something I will never understand.

Let me tell you a little story. When I bought a house, my auto insurance went up on the next renewal period. Then…….. sorry, I got off topic. Ask me some time, I have a great experience on this one.

You need to be sure that whatever is on your report is 100% accurate. In the past, when I was in the mortgage business I saw hundreds of credit reports. I was shocked at how many mistakes they had on them.

Many times I found myself helping the customer get the mistakes corrected just so they could apply for a mortgage. It was a long drawn out process sometimes I must say.

So what if you get your free report and find mistakes on it?? You need to dispute these errors right away. The process of disputing errors is somewhat easy if you know how to do it.

Disputing and Correcting the Errors

First off, you need to know that under the Fair Credit Reporting Act (FCRA) the reporting company and the information provider both have to be sure that everything is 100% correct. So let’s look at it this way for just a moment.

Let’s suppose you are the bank that gave you a mortgage. If the bank finds that you are making all of your payments on time and then reports to the credit reporting company that you missed a single payment, is that right?? Not really because you have made every payment and all of them have been on time.

You would need to get that error corrected since it will shows up on your report and cost you some points in your score. Let’s take this a step further, suppose the bank reports that you were always late on your payments. Now some people do not realize it but if you go past 30 days late, each time you do this it is reported to these reporting companies.

So if you know and can prove you have made all of your payments and have never been late, you want this corrected right away. When offering people credit repair tips, I urge everyone to not fall into the trap of thinking a grace period as something you should be using. A grace period is for the occasional time you may be a few days late, it is not a new due date for your payment. I know some people who use this falsely think it does not affect their credit. It does!

Once you get your free copy of your report and you find errors, there is a process you need to follow. Under the FCRA (Fair Credit Reporting Act) you can insist on errors being corrected since this is a poor reflection on you.

Normally it is the information provider (like the example of the bank above) that causes the error. These companies are only reporting what the providers tell them. However they have an obligation to help you get things corrected if there are errors.

Credit Repair Tips – Getting Started Disputing Errors

You need to write a letter to these credit bureaus about what you feel is not accurate on your credit report. Along with this letter you need to include copies (do not send originals) to back up what you are claiming to be the mistake. This gives proof that it is a mistake. Examples of this might be canceled checks, money order receipts, etc.

After providing your full name and current address you should make it clear what items on the report you are disputing. If there’s more than one mistake, spell them out one by one. You need to state all the facts and explain clearly why you have a dispute about the information. Then request that they remove it.

It’s a good practice to include a copy of your report and highlight or circle the item(s) in dispute. Be sure and send your letter by certified mail with a “return receipt requested” since it’s amazing how people claim “it must have gotten lost in the mail”. I’m sure you know what I mean here.

By sending your letter this way, you have proof of where it went and what companies you sent them too. You want to keep a separate file for each of the 3 credit bureaus you send them to. In each file be sure to keep a copy of the dispute letter and the proof you sent them. This way if you end up talking on the phone with them, you will be looking at the same thing they are.

Credit Repair Tips – What Happens Now

Because of FCRA, the credit bureaus have to investigate the items you are questioning. This has to be done within 30 days unless they think your dispute is not valid. That’s why the copies of proof is advisable.

They will forward your information to the provider who appears to have made the mistake. This causes the information provider to have to look into it and try to figure out what went wrong. After their research, if they find an error on their part, they must provide the corrected information to all 3 credit bureaus so your credit report is accurate. Even if there is no error they still must report it to the credit bureaus and explain their position why they feel the disputed item is correct.

Credit Repair Tips – Now What?

The credit bureaus now have to provide you an updated report (free of charge) that shows the corrections have been made. Once a disputed item is removed from your credit report, the bureaus cannot put it on your report again. For this reason you want to be sure that at least once a year you take a look at your report. The first time you do this may be a little more work depending how many disputes you may find. It is well worth the time and effort since your credit score is affected and can cost you thousands of dollars in higher interest rates on car loans, mortgages and so much more.

Now I know I got a little long-winded here, but I really want you the consumer to know your rights under this Fair Credit Reporting Act (FCRA) and to use them to your advantage by using these credit repair tips.

Jeffrey Ragan has several years of experience helping people reach their goals and wants to help you learn more credit repair tips and other helpful information on their website, First-Time-Home-Buyer-Solutions.com.










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Free Credit Reports Overview

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Credit reports are very important and should be treated with seriousness. They are essential when it comes to getting financial support from creditors, loan lenders and banks. Credit rating assists in illustrating your financial habits; in terms of borrowing and spending. The creditors and loan lenders use this credit information to figure out your likelihood to default a loan. They use this information to determine loan applicants that are able to pay back. Once they establish this, they use the credit report to determine the amount that they can safely lend out to each of the applicants.

A couple of years back access to one’s credit report was limited and only special agencies could prepare it for you at a cost, until the United States Government made a legislation making the information accessible. Today, you are able to get free credit reports.

The government offers free credit reports annually to each individual. Moreover, there are many free credit report websites on the internet. They enable one to get information concerning their credit rate in a few moments. Financial institutions also recognize credit reports but they do their own checking.

If you’re barred from getting a loan, you should ask from them a copy of your credit report for they are required by the law to provide you with one as proof of why your loan was declined. This is also a way of getting access to your credit report. When searching for a credit report on the internet make sure that the site you are using is trustworthy and that it will keep your privacy, as sending personal information to just any site can cause many problems most of all identity theft.

Identity theft is a situation when a person uses your personal details to do their business transactions.

This can cause serious damage to your credit rating and could consequently affect your future financial life. With a poor credit rating, you will have a difficult problem getting any form of financial support. Therefore, you need to guard this information and only use it in sites that you have verified to be genuine and security approved

You have no reason then to be aloof concerning the state of your credit. You need to get the free credit report so that you can be able to analyze and figure out what you need to do to improve your credit rating.

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