Have you ever seen your credit report? Your employer probably saw it before hiring you. The landlord likely considered it before accepting you as a tenant. And long distance telephone carriers even look at it before giving you a long distance line. And you've never even seen your own credit report?! If your answer in no, you're not alone. In fact, according to a recent study, less than 20% of all Americans have ever seen their credit report. Most people become concerned about their credit report only when they are denied credit. By that time, it's usually too late. You should take a look at your credit report at least once every 2 years. This way, information is still accessible and verifiable in the case that you may need to have it corrected. You should also look at your credit report before applying for any credit. This may help to avoid any unwelcome surprises. Allowing you to look at exactly what your loan manager will look at, can prepare you for any questions If you've never had credit problems, you might think that you need not be concerned. But according to a recent government study, one out of every four credit reports contain errors, one out of every six contain errors that could cause denial of credit. Sometimes Credit reports are accidentally combined, and people with similar names or social security numbers actually share a credit report! It's not at all uncommon for family members to have overlapping data. Nor is it uncommon for a credit card or loan company to accidentally list you as having missed a payment. Have you ever received a late notice or collection letter on something that you already have paid? I'm sure you made a phone call or two and straightened it out immediately. But what about the monthly report to the credit bureau? You can't help but wonder if the mistake got corrected on that report. The only way to find out what is actually on your credit report is to look at it for yourself. When you do, you may be surprised to see that your credit record looks quit different than you expected. The past and present credit accounts that you expected to see, may not be listed, and still other accounts that you did not expect to see might be listed. This is not at all uncommon because creditors are not required to report our account to a credit bureau. They are free to report only the information that they see fit. And they can report that information to whichever credit bureau they prefer. Some creditors report all credit account transactions to all of the large credit bureaus. Some creditors prefer to report an account only when it becomes delinquent. And still other creditors do not report to a credit bureau at all. This situation may provide for a pleasant surprise, if a past loan that became delinquent doesn't show up on your report. It may also provide a very unpleasant surprise, if something you thought unimportant was reported. Like maybe a non paid magazine subscription, or even worse, someone else's delinquent account record. The only way to find out what is on your report is to see a copy for yourself! If you have bad marks on your credit report because of some past credit difficulties, I'm sure you're wondering about credit repair. The advertisements tell you it's possible, the banks and credit bureaus tell you it's not! Yes, it IS possible to remove bad marks from your credit report even though the information is true. Yes, legally! However, beware of credit repair clinics and agencies that make exaggerated claims and charge exorbitant prices. Where to go for help. Consumer Credit Counseling Service. A Non-Profit organization offering free or low cost financial counseling to help solve your financial problems. Services include, budget counseling, debt consolidation, and dealing with creditors. Over 600 offices nation wide. For the office near you call 1(800)388-2227 Debtors Anonymous A self help organization based on the same basic principles as Alcoholics Anonymous. For the phone number of your local chapter, call (212)297-6102 QUESTIONS AND ANSWERS What does it mean to have good or bad credit? Having good credit means that according to your past creditors, your record (credit report) is clean. You made payments, and paid off your past debts satisfactorily. Having bad credit is just the opposite. Your record (credit report) shows that you have not paid off your past debts as agreed. This could mean late payments, collections, non-pays etc... This information is held at the "credit bureau", and is provided to those businesses that request it. What is the Fair Credit Reporting Act? The Fair Credit Reporting Act is the federal law that governs credit bureaus. The law was written to protect consumers from the obvious power that credit bureaus can have over their lives. Do I have a right to know what my credit report says about me? Yes, the Fair Credit Reporting Act guarantees you that right. This law also gives you the right to obtain a copy of your report for free, with a letter of denial of credit, if that denial of credit was due to information found on your credit report. What will it cost me to get a copy of my credit report? Most credit bureaus charge between 10 and 20 dollars for you to obtain a copy of your credit report. however, TRW, the largest credit bureau, will provide you a copy free of charge, one a year simply by requesting it. You also may obtain a free copy of your report from any credit bureau that provided information that caused you to be turned down for credit. For complete, up to date information how to receive a copy of your credit report, you may contact the three largest credit bureaus directly at: TRW (800) 392-1122 Trans Union (714) 738-3800 Equifax (800) 685-1111 What is on my credit report? Your credit report contains information about your credit card accounts, loans, charge accounts, and items of public record such as bankruptcies, tax liens, and judgments. It will list each account on record, who the account was with, how much was borrowed, how much was paid, and how timely the payments were made. It will also list any accounts sent to collection agencies, accounts not paid in full, and defaulted loans. Who has access to my credit report? According to the Fair Credit Reporting Act, anyone with a "legitimate business need". However, in most cases the report is only provided to credit grantors, employers or prospective employers, landlords, and insurance underwriters. Are ALL of my accounts listed on my credit report? Probably not. Businesses have a right (but not the obligation) to report to any or all credit bureaus, at their discretion. Your previous credit grantors might have reported your credit experience to just one credit bureau, all three large credit bureaus, or they might not have reported it to any credit bureau. However, most large credit grantors report to TRW, Transunion, or Equifax. Do past accounts that have been paid stay on my credit report? Yes, your credit report contains both open and closed accounts, as well as accounts which have been paid, or which have no current balance. Any paid collections, satisfied judgments, zero balance revolving charge accounts, and paid installment loans are also included. How long does unfavorable information stay on my credit report? Generally seven years for most accounts, and 10 years for bankruptcies (with a few minor exceptions). Beware however that accounts older than seven years are often found on credit reports due to "mistakes" in the status date. How can I find out who has checked my credit report? Each time someone requests a copy of your credit report, that request is listed on the report as an "inquiry". This allows prospective credit grantors to see who has checked your credit in the past. The "inquiry" will stay on your report for up to 2 years. Is it possible that there are mistakes on my credit report? It is not only possible, but probable! According to a recent government study, 1 out of every 4 credit reports contain errors, 1 out of every 6 credit reports contain errors that could result in denial of credit. What can I do to correct mistakes on my credit report? You have the right, under the Fair Credit Reporting Act, to dispute the completeness and accuracy of information in your credit file. When a credit reporting agency receives a dispute, it must reinvestigate and record the current status of the disputed items within a "reasonable period of time," unless it believes the dispute is "frivolous or irrelevant." If the credit reporting agency cannot verify a disputed item, it must delete it. If your report contains erroneous information, the credit reporting agency must correct it. If an item is incomplete, the credit reporting agency must complete it. For example, if your file showed that you were late in making payments on accounts, but failed to show that you were no longer delinquent, the credit reporting agency must show that your payments are now current. Or if your file showed an account that belongs only to another person, the credit reporting agency would have to delete it. Also, at your request, the credit reporting agency must send a notice of correction to any report recipient who has checked your file in the past six months. If a reinvestigation does not resolve your dispute, the Fair Credit Reporting Act permits you to file a statement of up to 100 words to explain your side of the story. The credit reporting agency must include this explanation in your report each time it sends it out. Credit reporting agency employees often are available to help you word your statement. How do I dispute mistakes on my credit report? You must make your dispute directly to the credit reporting agency. Although the Fair Credit Reporting Act does not require it, along with 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, explain why you dispute the information, state the facts, 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 one at the end of this brochure. Send your dispute by certified mail, return receipt requested, and keep copies of your dispute letter and enclosures. By doing so, you can document what the credit reporting agency received. SAMPLE FAIR CREDIT REPORTING ACT DISPUTE LETTER Date Your Name Your Address Your City, State, Zip Code Complaint Department Name of Credit Reporting Agency Address City, State, Zip Code Dear Sir or Madam: I am writing to dispute the following information in my file. The items I dispute also are encircled on the attached copy of the report I received. (Identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) This item is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information. Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible. Sincerely, Your name Enclosures: (List of whatever you are enclosing) ----------------------------------------------------------------------------------------------------------------------------------------------------------- This information is provided for informational purposes only. The author and distributor assume No liability. You should retain professional legal or financial assistance if required.CREDIT REPORTS, What You Need To Know!