Tarron Acuff asked:




The three major credit bureaus are Equifax, Experian, and keep information on your credit history. If you don’t have any credit it should say is that the report does not exist because no credit has been established. If they do have credit established, it will tell you what is on your report. If you should ever see something on your report that looks like fraud, Contact the fraud departments of any one of the three major credit bureaus to place a fraud alert on your credit file.

You may request free credit reports once a year from all three major credit bureaus. Your credit score is a number given to you by the three major credit bureau agencies that reflects your credit profile. At first, it would seem as though your credit score would be the same at all three major credit bureau companies, but in fact all three scores can be different. Credit scores are improved by having the right type of credit, showing responsible use and not having too much credit.

Let’s say, find that some information in your credit report that is incorrect, you may to dispute that information to have it corrected. To file a dispute, you have to attach a copy of your credit report and mark the incorrect items. You most likely will have to prove that the information is false. You should mail the dispute letter as certified mail and always keep copies for yourself. Just like most data you need to have a backup in case you would need to prove what you had sent. Your letter should include your complete name and address, clearly identify each item you dispute, explain why you dispute the information, and request deletion or correction.

Nathaniel

Tim Bock asked:




Many times people are unaware of exactly what’s in their credit report, let along if there’s a collection account in there. There are usually 1 or 2 reasons why a collection account may exist.

- The account went to collections
- Mistaken identity

Fortunately it’s not the end of the world. There are steps that can be taken to get the collection off of your credit for good.

Get a copy of your credit report

There are 3 main credit bureaus where you can obtain a copy of your credit report. These are as follows:

- Equifax
- Transunion
- Experian

Dispute the findings

Each credit bureau operates separately. Therefore having the account deleted from one does not automatically mean it will disappear from all 3. Lenders do look at all three credit reports, so it’s extremely important to follow up with all of them. Not doing so will affect your ability in getting a loan.

Do it in writing

It’s important to mail your dispute in. Do not try to do it over the phone. Writing gives you documentation in case you need it. After they received the dispute, they will investigate the matter. If the investigation is not resolved within the allotted amount of time, the item will automatically be deleted from your credit report.

Fair credit reporting act

Become familiar with this law, before you contact the credit bureaus. It could save you a lot of time and trouble. It’s important to get the facts, so you have all the tools at your disposal when going up against the credit bureaus.

Tamara

Ed Nailor asked:




Did you know that your credit score can vary depending on who pulls your score and why? Imagine this…. You need a new car and are thinking of buying a home too. You do your homework and pull your score online directly from the credit bureaus. Your score online is 650. The car dealer tells you your score is 619 and your mortgage officer says your score is 694. Why the different scores? What causes such discrepancies?

Lets look at 3 items that can make your score vary.

1. Which credit bureau was the credit pulled from?

There are 3 major credit bureaus: Equifax, Experian, and Transunion. Each bureau collects information as reported by your creditors. However, your creditors may not report to all 3 bureaus. This means that you may have different information in each bureau. Different information can make for different scoring outcomes.

2. There are differences in scoring models.

A scoring model is the formula used to create your score. Fair Isaac is the company that creates the models for the 3 bureaus. While there are 3 different bureaus, each bureau can have different models of scoring. Think in terms of computer programs… one program may go through updates and changes (version 3.0 and then 4.5.) Both versions work, but have different options based on the version. The same principal works here. The bureaus may be using different versions of scoring models depending on who pulls the credit.

3. What was the reason for the credit inquiry?

One more factor may be the reason your score was pulled. You see, buying a home should require different parameters that getting a credit card or buying a car. Each one of these will weigh different factors of your credit file more heavily. For example, a credit card company will want to factor revolving credit more heavily that a car loan. This way they will have a better indicator of how you will handle the new revolving credit card they are considering giving you. So the reason for your credit inquiry (mortgage, loan, credit card, ect.) will impact what makes your score up. Note: Federal law now requires that all 3 bureaus make a free copy of your credit report available to everyone. Since there are no others reasons for the inquiry the score will be generic based on all your credit, not a score potential creditors will use in their decisions.

Does this all seem confusing? Well unfortunately it is. Federal law now requires that when a credit inquiry is performed, you have the right to know the score and the indicators that helped make up that score. With the new laws enacted Congress is trying to make things better. Still, the best way to overcome these discrepancies is to build a solid credit file!

Leo

Cris Rendall asked:




Generally there is not much to going over your credit reports. You read over them double-check a few items and more or less forget about them until next year. Or maybe you’re in a different situation. This could be the first time you’ve ever ordered your credit reports and some of the items just don’t seem right. At first it may seem quite distressing to notice these inaccurate items. The fact is many people don’t know how to go about fixing the problem. Here will discuss how to remove these items and stop the damaging effects that they have on your credit.

Be sure to keep good records

In order to dispute an item you will need to provide documentation to the creditor and the credit bureaus. Since you obviously won’t know ahead of time what the mistakes will be keep good records. Canceled checks, billing statements, and receipts are all very useful when disputing an item. Keep the originals for yourself and send copies to whatever parties may need.

Notify the credit bureau

By law the credit bureau must investigate all legitimate claims that are put in writing. If you notice errors take action as quickly as possible. Keep in mind that just because an item is negative does not mean it’s inaccurate. You only waste your time and everyone else’s by submitting false claims.

First compose a letter to the credit reporting agency with a detailed description of the inaccurate item. Provide as clearly as possible why this item is in error. Include with the letter copies of all supporting evidence. Also include your name and address.

Mail this information by certified mail with a return receipt requested. What this does for you is let you know when the item was received. The credit bureau is required to investigate all written claims within 30 days. This is the initial investigation so do not expect a full resolution in that time frame. It can unfortunately take much longer.

Notify the creditor

Follow the same steps that you took when you contacted the credit bureau. Once the creditor has been notified they must include a note on your credit report indicating that the item has been disputed. This will continue until it is determined to be correct or in fact an error. To help protect consumers the burden of proof lies in the hands of the creditor. If they cannot prove that the item is true it must be corrected or removed. Many laws are either in the process of being passed or have passed recently that deal with how items are reported. The government is starting to crack down because of the problems these inaccuracies have caused the American people.

It’s very important to be thorough in checking over your credit report each year. Errors are unfortunately common and unless you find them chances are no one else will. It is essential that you fix your credit report errors because they will hurt your score. If you find that there are multiple errors or if you do not have time to do this yourself please look into professional credit repair, there are affordable and reputable companies out there.

April

Thomas Mathews asked:




Before I reveal to you “whats a good credit score” you need to know that all 3 credit bureaus have a credit score for you and they will usually vary 10 to 40 points depending upon the number of bad credit items that are on each specific credit report.

Why does each credit bureau have different scores for you? Because not all creditors report to all 3 credit bureaus; therefore, you may have more bad credit items on a report than the other two, thus the report with the most bad credit items on it will have the lowest score.

Most mortgage lenders look at what is known as the Fair Isaac or FICO Score. A FICO score can range from 300 (very bad) to 850 (very good). The median is 723, according to Fair Isaac statistics. Recently, the 3 main credit bureaus, Experian, TransUnion and Equifax have developed their own combined score to compete with lenders that use the FICO score and they are trying to encourage lenders to use their new scoring system that they call the “Vantage Score”. It ranges from 500 (very bad) to 990 (very best) and like the FICO score it is based on the review of all 3 credit bureau scores along with their own proprietary formula.

So whats a good credit score?

The bottom line to having a good credit score irregardless of whether it is an Experian, TransUnion, Equifax, FICO or Vantage score is – the more “bad credit” items that you have reported on your 3 credit bureau credit reports the lower your credit score will be on your FICO and or Vantage score. It is that simple.

The key to achieving a good credit score is to be able to get any and or all of the bad credit items removed from each of the 3 credit bureau credit reports. More on how to get that done later.

How Is A Good Credit Score Calculated?

Your credit score is simply a number representing your life as it relates to your past and existing debt. Each credit bureau, FICO and Vantage has it’s own proprietary algorithm that they closely guard but there is general information available as to how they all calculate their score for you. Like it or not Creditors use your credit score no matter where it comes from as the indicator of your creditworthiness. Your credit score is calculated using five key categories.

How the Scores Are Calculated

1) 35% of your Score is devoted to Payment History. This would include missed payments, collections, bankruptcies and the like. The older the information the less of an impact on your overall score.

2) 30% of your Score is based on Utilization. This is the amount of credit you have in used as compared to your available credit. The recommendations point to less than 10% of your available credit be utilized.

3) 15% of your Score is impacted by your Credit History. Effectively how long you’ve had accounts open and obviously takes some time to build.

4) 10% of your Score is based on Inquiries. If you apply for various forms of credit and then don’t get that credit it will impact you negatively. Checking your own credit does not impact this number.

5) 10% of your Score is determined by Types of Credit. This would be different forms of credit such as mortgages, auto loans, revolving credit and installments.

Did you notice that there Is something Missing? You’ll note that there is no consideration for your actual income in this model. Interesting to say the least don’t you agree? Your income doesn’t have anything to do with calculating your credit score. Lenders do.

Whats a Good Credit Score?

How many times am I going to make you ask me “whats a good credit score” before I answer? OK, ok. The short non-scientific answer is 760 or above. That’s the score that is going to get you the best interest rates possible on a mortgage, auto loan or many other forms of credit. That doesn’t mean that each lender will offer you the same rate if you have that magical 760 score. It will depend upon the amount of money a particular lender has available at the time that you apply for your loan that will dictate what the loan rate they will offer you.

If your score is 760 or above then I recommend that you monitor your credit scores and if drop for some reason you will know immediately and you will be able to do what needs to be done to get it back to that magic number. Why is that important? Because if you allow it to drop within 30-60 days you’ll see many of your loans and or credit card rates slide upward. How can that happen you ask? The “fine print” on every loan or credit card agreement will usually allow the lender to adjust your rate without notice if your credit score changes.

If your credit score is far below the magical 760 score then you may want to learn how you can force all three of the credit bureaus to give you a good score. There’s a way to do that. Let me know if you are interested.

Lydia

Rachel Altman asked:




I believe that once you’ve paid a debt, it should be removed from your credit reports. However, the credit bureaus disagree. In fact, by law they are able to report it for up to 7 years from the date it was paid. But, here’s the good news: Also by law, you are permitted to dispute any account on your credit report that you choose.

Once you dispute an account on your credit report, the credit bureau contacts the creditor to verify the item. The creditor has 30 days to verify the account. More often than not, if the account is paid, the creditor will not bother verifying it and if the account is old, lots of times they don’t keep the records and are unable to verify it. If that happens, it must be removed from your credit reports immediately.

If the investigation results come back as “verified”, you have the right to request the credit bureau’s and collector’s method of verification. You should immediately send them a letter requesting verification. There is no limit to how many times you can dispute the account with the credit bureaus. Usually, if they are going to remove the account, they will do it with in the first couple disputes, but I’ve seen accounts be removed after up to 15 disputes. Sometimes you just have to keep on them.

You can also contact the creditor directly and ask them to remove the account. This should always be done BEFORE you pay the account. Offer to pay the account if they will promise to delete it from your credit report. Get the agreement in writing; especially if you’re dealing with a collection agency.

If you’ve already paid the account, you won’t have much negotiating power. But, it won’t hurt to ask the debt collector to properly validate the debt. Writing a debt validation letter is a great way to put pressure on the debt collector to remove an account from your credit report. Just because you’ve paid an account does not mean that you agree that the account is yours. And many times, if you have paid the debt, the debt collector will remove it from your report. All they wanted was their money. They really have no reason to leave it on your credit report and risk being sued.

Holly

Hector Milla asked:




Short answer, 7 years. When your home goes up on the foreclosure list, the lender then sends your information to the credit bureau to report you on your non payments. Your credit report will show details of your failure to pay your mortgage to the lender. It will read that you were late in making your mortgage payments, and it will also highlight every time you were negligent in paying your mortgage for whatever months you did not pay.

A report ordered by a lender, a school, or a job from a credit reporting bureau will disclose your payment history or existing credit accounts. The credit report that was ordered will be used to help evaluate their risk in helping you. The fact that your credit is now in bad standing will effect your chances in receiving another loan. You’re now considered high risk, and many institutions that are required to evaluate your credit history will not take a risk with someone who has had their home foreclosed on.

Your foreclosed home will show up on your credit report history, and that history will be on your credit report for seven years. However, homes that were foreclosed some years ago will not have much effect on your credit score as a new home that has been recently foreclosed on. It is imperative to know that a home that has been foreclosed will show up on all three credit reporting agencies, which are Equifax, Transunion, and Experian. There is typically no going around the seven years hit on your credit.

Charlotte

Roy Leadwell asked:




A Bankruptcy on your credit report can be devastating for you. If you try to get a this will be the first thing the lender will see and it will show you as not credit worthy. You will hear a lot of people say that it is impossible to remove a bankruptcy from your credit report. The truth is that you can dispute any type of negative mark on your credit report.

It is important to remember that it is the credit bureau is responsible to verify any information that is on your credit report, whether any negative information is your account or not, if they can not verify it, they must delete it. The Fair Credit Reporting Act, puts the burden of proof on the credit bureau. Always remember to be truthful with any information on your credit report. It is important to know that the credit bureaus do not investigate public records and the courts do only verify such records in person. They will claim that they can verify your records, but they don’t. It is important for them to know that if a consumer were to seek litigation and monetary damages in a court of law, they would loose, big time.

It is important to be persistent with making sure your credit report is accurate and that you need to dispute anything you find to be inaccurate on your credit report. You have to make sure you check your report often and that you follow up when you make a dispute to see if it has been removed or not. Remember that your credit is the first thing a lender looks at when determining your credit worthiness.

Dennis

Rachel Altman asked:




A bankruptcy can have a devastating effect on your credit score. A bankruptcy listing on your credit reports to many lenders is the only thing they need to see to determine you are completely unworthy of credit.

Many people will tell you that it is impossible to remove a bankruptcy from your credit reports. The truth is that you can dispute a bankruptcy the same as you can any other type of derogatory account on your credit report.

Note that whether the account is “really” yours or not has no bearing on the credit bureaus responsibility to verify it. If it cannot be verified, it must be deleted. Period. According to the Fair Credit Reporting Act, the burden of proof is on the credit bureau.

Please let it be clear that it’s never ever wise to be dishonest when communicating with credit reporting agencies, plus it is totally unnecessary. There are many ways to dispute the bankruptcy without lying.

Did you know that the credit bureaus don’t even investigate public records? The courts will only verify such records in person. The credit bureaus will claim that they have a system to verify such records, but when it comes down to it, they don’t. They also know that if a consumer were to seek litigation and financial damages in a court of law, they would be in big trouble.

I had my bankruptcy removed from 2 out of 3 of my credit reports. The one that would not remove the bankruptcy claimed that they verified it electronically and that it’s public record. It is indeed public record; they were right about that part. But, I asked them who they verified it with and they said they verified with my local courthouse. That’s impossible since the local courthouse confirmed that they only verify public records in person – not electronically, not through the mail, and not over the phone.

This particular credit bureau is much harder to work with than the others. They are very adamant about keeping items on your credit report whether they are accurate or not. This credit bureau has also been sued the most. And as long as they refuse to properly investigate accounts according to federal law, they will continue to get sued the most.

Vincent