It wasn't all that long ago that
American's faced great financial crisis. As a nation, we struggle
with debt, and it keeps us from achieving a better life. Debt
Education is here to help you change all that ... just ask!
REAL PEOPLE ... CARING ABOUT REAL
ISSUES
What is a credit report?
A credit report is a record of your payment history with lenders.
Other lenders use this information to decide whether or not to
extend credit to you. Credit reports are maintained by credit
bureaus. A credit bureau is a clearinghouse for consumer credit
information. It can report only the information that is provided
to it by creditors; it cannot change information unless instructed
to do so by a creditor.
Who may look at it? Under the Fair Credit Reporting
Act, only someone with a legitimate or permissible reason can
see your credit report. If you apply for credit, insurance, or
a job, the potential creditor or employer has permissible reason
to see your report.
How do I get a copy of my credit report? There
are three national credit bureaus that collect information and
issue reports. They are separate businesses. You should get a
copy from each of them.
Equifax 1-800-759-5979
Experian 1-888-397-3742
Trans Union 1-800-916-8800
Is all of my credit history on my credit report?
No, Your creditors may report to only one or two credit bureaus.
Some of your creditors may not report to a credit bureau at all.
Generally, utilities, landlords, doctors and attorneys do not
report to a credit bureau unless your account has gone to collection.
Does a Credit Bureau rate my credit? No. Each
credit grantor or lender has different requirements or criteria
for extending credit so it is impossible for anyone to have an
overall "rating." All a credit bureau does is provide
a factual report of your credit history.
How do I correct errors on my credit report?
You can use the form that is part of your credit report or you
can write a letter to dispute incorrect information. Your "dispute"
must be in writing, and you should keep a copy of your letter
or dispute form. By law, the credit bureau must investigate within
30 days any entry you dispute. When you send your letter, ask
for a corrected copy of the credit report.
Be sure to check all the information on your credit report. Sometimes
errors are made because a name, address or social security number
is listed incorrectly. If the error involves your account with
a creditor, contact the creditor's customer service department
to make sure that your account history is correct. If the creditor
has made a mistake in reporting to the credit bureau, ask the
creditor to submit corrected information.
What can I do to get an error corrected after I have disputed
it several times?
There are several things you can do if you have made an earnest
effort to correct an error:
• You may include a 100-word statement on your credit report
explaining your side of the story. You should send this statement
to each credit bureau that is showing inaccurate information on
your credit report.
• You may contact the Federal Trade Commission that oversees
credit bureaus. Their office in Chicago may be contacted at (312)
353-4423, or access Federal Trade
Commission.
• You may also contact the U.S. Public Interest Research
Group in Washington, DC at (202) 546-9707, or access U.S.
Public Interest Research Group.
How long does negative information stay on my credit
report? Information, both good and bad, will stay on
your credit report for seven years. Bankruptcy will stay on your
credit report for ten years. There are exceptions to these limits.
If you are asking for a large loan, like a mortgage, over $50,000,
buying insurance over $50,000, or seeking employment where your
annual salary will be more than $20,000, the potential creditor
or employer may request older information.
Can a credit repair clinic help? Even though
it may claim to be able to "remove" bad credit "legally"
before seven or ten years, a credit repair clinic cannot permanently
remove accurate information from your credit report. A credit
repair clinic will dispute information that will be investigated.
During the process, the account will be identified on your credit
report as "disputed". If the information is found to
be accurate, it will remain on your credit records. The credit
repair clinic will charge you, usually a large fee, to obtain
copies of your credit reports and to send letters or dispute forms
that you can do for yourself for the cost of a few postage stamps.
Credit repair organizations may not charge or receive any money
for a service until it is fully performed. A credit repair organization
may not take any action intended to conceal adverse information
from a credit reporting agency or creditor.
How does a divorce affect my credit? Even if
you are divorced, you are responsible for the balance on all accounts
that were opened jointly. It is a good idea to pay off all balances
and close joint accounts as part of the divorce settlement. If
joint accounts are used after the divorce, you are still responsible
for those accounts unless you notify the creditor in writing that
you wish to have your name removed from the account.
What can I do about negative information that is preventing
me from getting credit? Negative information, if it is
accurate, will remain on your credit report for seven years. The
best - and only - thing you can do is develop a pattern of prompt
payments in the future. You may include a 100-word explanation
on your credit report. This is helpful if negative information
is the result of unusual circumstances, such as divorce, illness
or unemployment. You may need to send this statement to all three
credit bureaus.
What can I do to improve my credit rating?
• Don't take on more debt than you can handle.
• Make all payments as promised-in full and on time.
• Don't apply for a lot of credit at once.
• Close accounts and lines of credit that you do not use.
• Check your credit reports each year (especially if you
are planning a major purchase) to make sure all reported information
is correct.
There's a lot of information to read through on the Debt Education
website, but we feel this is extremely important material. We
strongly recommend that you bookmark
this page right now. This will allow you to read
at your leisure, and should you need to attend to other matters,
easily return back here at your convenience.
The Debt Education website was built for you. Please explore
our website. You'll find resources and information on virtually
every aspect of financial planning and money management. These
debt delp resources are designed to help you get out of debt
and stay out of debt. You can achieve financial independence.
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Debt Education PO Box 5156, Santa Cruz, CA 95063
