Mike Clover asked:




Your credit score report can be affect by more than your available credit history. We talk about how credit cards, mortgages, car loans, and any type of loan that reports to all 3 credit bureaus will affect your credit score. We don’t always talk about utility companies and how they can have a negative impact on your credit report. Here are utility companies I like to consider non-creditors. In other words these companies don’t give you a line credit, they just provide a service.

Utility companies

- Phone companies

- Electric companies

- Security companies

- Cell phone companies

- Water companies

- Gas companies

- Cable companies

- Internet Companies

Let’s assume you are having a tough time currently, and you stop paying your cable bill. The cable company will give you a little time to pay off the debt for service rendered, but will eventually turn that debt over to a collection company. The collection company in return will report that obligation to the 3 credit bureaus wanting their money. This is how it works with any of the companies mention. Once this collection reports to the credit bureaus your credit rating just dropped about 100 points. Utility companies on the other hand don’t help your credit when you are in good standing, but will also hurt your credit score if you don’t pay. Once the collection hits your credit report, and you finally decide to pay off the collection, the collection will be on your credit report for 7 years. 7 years of negative information will be on your credit report. If you don’t pay the collection, the collection company can sell the collection repeatedly to different collection companies which will ultimately drive down your credit score even more.

Pay your bills on-time

If you get behind, call your creditors immediately and work out a payment arrangement with them. They will typically work with you, especially during tough economic times. A creditor or utility company would rather get some form of payment versus nothing. If you don’t pay your bills including utility bills it will affect your credit score report. With lending getting extremely tough currently, your credit scores are more important than ever. If you have credit issues, the banks may look at your credit history as too big of a risk for there portfolio.

Don’t assume if you don’t pay utility it will not affect your credit. Because it will affect your credit, and will not go away until you pay it off. If you are unsure what is on your credit report, get a copy of your free credit score report today.

Arlene

Jeremiah Perez asked:




Experian – TransUnion – Equifax

There are 3 major private, for profit Credit Reporting Agencies (CRA’s) also known as Credit Bureaus who gather information about consumer credit and their usage. The three major credit agencies are Equifax, Experian, and TransUnion. They accumulate all consumer financial transactions and inquires from all possible sources. The Bureaus then package all of the financial transactions and inquires into a structured format which produces a report and score. For a fee, this information is then available to any legally recognized individual or organization which you have provided permission to usually in the form of an application. This score also known as your credit score is called VantageScore when ordered from Experian or TransUnion and FICO score when ordered from Equifax. All 3 reports will provide you with a complete look at your score, history, loan balances, and creditor inquires. The legally recognized individual or organization which you have given authorization to pull your credit score, sometimes only contacts one of the 3 bureaus to inquire on your credit history. However, in order to obtain a complete picture of your current position, a report from all 3 bureaus must be ordered. This report has several names such as triple credit score, three credit scores, 3 bureau credit report, or all in one credit report. Below is the appropriate contact information in order to dispute an error you found on any of your reports.

Credit Bureau Contacts –
Main addresses and telephone numbers

Equifax Credit Information Services, Inc.
P.O. Box 740256
Atlanta, GA 30374
Customer Service 1-866-640-2273
Report fraud 1-888-766-0008

Experian National Consumer Assistance Center
P.O. Box 2002
Allen, TX 75013
Main line 1-800-397-3742
Alternative line 1-800-493-1058

TransUnion Consumer Solutions
P.O. Box 2000
Chester, PA 19022
Main line Customer Service 1-800-888-4213
Human operator 1-800-916-8800

Tip: It is important to pull all 3 reports in order to view your entire financial position as creditors do not all report to each of the 3 Credit Reporting Agencies(CRAs)!

Joyce

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

Helen Hecker asked:




Assuming you already have a copy of your annual credit report you may have already found some errors that should be removed. Errors should always be a big concern because they can and probably have affected your credit score, also called a FICO. You can repair your credit with a little bit of help.

It may seem like a lot of work but it’s really easy. The hardest part is actually sitting down to do it. You’ll need to check all three credit bureaus to make sure the same error isn’t on all three but if you just have one credit report, start with that one.

First make a list of any and all errors that you find on your personal credit report. These could be in the form of personal information such as birth date or more likely there will be information that you know not to be true such as late payments or no payments recorded etc. If you think there is any possibility that you could be wrong check your past history with the creditor in question first.

You want to make sure you are right before you make the request to have any information removed from your credit report.

You will be sending the letter only to the credit bureau mentioned on the report, which would be Esperian, Equifax or TransUnion. You don’t want to sound angry in the letter, just be matter-of-fact, straightforward and business-like. Just outline the facts – name of creditor, dates, and the error(s) or problem(s) you’re finding on the credit report.

Here is a sample letter:

Date:

To whom it may concern at Esperian (or other credit bureau):

I recently acquired a copy of my credit report and found some errors that I’d like to dispute. I am enclosing documentation to prove the information is incorrect and would like a correction. I value my good standing and good credit history and want to maintain a good credit rating and credit score.

Name the creditor along with the reference date including the month, day and year if possible.

The error(s) I have found are:

I’m including copies of my payment record, with a (cancelled check or online payment print-outs or any other documentation that you have).
I would appreciate any attention to the matter as I would like my credit report to be accurate. I’m sure you understand that credit bureaus need to include only information that is accurate in my file.

Thank you for taking a look at my letter and file and hopefully making the necessary corrections so I can continue to maintain my good credit standing. Please let me know that my file has been reviewed and what action has been taken. I would also like a copy of my corrected credit report sent to the enclosed address. Thank you.

Sincerely,

Besides your full name as shown on the report, include you mailing address, a copy of the report that you have, your social security number, driver’s license photocopy and any other documentation such as a cancelled check or online payment confirmations.

Make a copy of the letter for yourself and a copy of any enclosures with the letter. Send the dispute letter by certified mail with a ‘return receipt’ requested. Then make sure to get the free credit reports from the other two main credit bureaus or reporting agencies to make sure they don’t have the same incorrect information. You can get free instant credit reports from the other two online.

Shawn

Herschel Bentley asked:




Historically, the function of the Credit Bureaus first began as collection agencies and they only gathered negative information. Then Fair Isaac & Company developed the FICO scoring system to improve the overall credit reporting system. Today, the bureaus report both positive and negative credit history to provide a risk-grade rating that estimates your credit worthiness.

The Fair Debt Reporting Act provides you the right to dispute erroneous, inaccurate and unverified items to have them removed from your credit history. Online credit disputes are the least beneficial to consumers.

The first reason and one factor you have on your side when disputing credit is time. The legal thirty to forty five day limit is not enough time for a credit bureau, creditor, or collection agency to properly investigate a dispute.

The Credit Reporting Agencies (CRA’s) online dispute system is set up in such a way that when you use it, it makes their job easier and more cost efficient. The information you put into their limited dispute fields falls right into their electronic verification system.

The next reason and probably the most obvious is that you have no paper trail. Any attorney would advise you that much of credit repair is about good records and paper trails.

Lastly, the Fair Credit Reporting Act has a section for “Expedited Dispute Resolution” Section 611a(8) for the online dispute system which reads as follows…
” the agency shall not be required to comply with paragraphs 2, 6, and 7 with respect to that dispute if they delete the trade line within 3 days.”
Paragraph 2 requires the CRA to forward your dispute and all related documentation you provide to the creditor. They rarely forward the documentation.
Paragraph 6 requires the CRA to provide you with written results.
Paragraph 7 requires the CRA to provide you with the method of verification on request from the consumer.

Knowing this lets you know that the CRA can delete a disputed trade line for 30 days, then the trade line can reappear when the creditor reports it again in the next cycle. This is because the CRA is not required to tell the creditor you disputed it, thanks to paragraph 2 being omitted.

Disputing online you’ll lose this powerful tool, your rights to request the “Method of Verification” (MOV), in the dispute process thanks to paragraph 7 being omitted.

Finally, another powerful tool is the five day written notice of re-insertion. Essentially, what that means is that if a credit bureau is going to re-insert a previously deleted item, they must inform you in writing five days prior to re-inserting it. You will rarely, if ever, see the CRA’s give this notice.

Now hold on to your hat, here’s the twist to this; that five day notice is ONLY required if the credit bureau takes longer than 45 days to complete. IF and ONLY IF, it is deleted via the expedited system, often completed in three days, the five day written notice is no longer required.

Never dispute errors online if you want them to be permanently removed. If you are going to dispute items on your credit, do it in writing, and do it by certified mail with a signed receipt.

Claude

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

Ben S Douglas asked:




TransUnion, one of the “big three” credit reporting companies, compiles all the information they receive from lenders into your credit report. As a credit bureau, TransUnion keeps credit history about you including your address, payment history, employment, and other personal information. Whenever you apply for any type of credit, a lender pays a bureau for access to your credit record to see your financial history.

This is why it is so important to make sure the data on your credit file is accurate and up to date. If TransUnion is indicating inaccurate information about your history, you need to file a dispute.

To dispute your TransUnion Credit File, follow these steps:
o STEP 1: Draft a credit bureau dispute letter
o STEP 2: Mail the letter via U.S. Registered Mail
o STEP 3: Wait for the results and a copy of your updated report

Review your credit report very carefully so that you can dispute multiple items at once. However, keep in mind disputing many items at once may result in serious delay. Credit bureaus have been rumored to “red flag” people who dispute more than a few items at a time. This is just one of the many obstacles of “do-it-yourself” credit disputes.

What Should I Dispute?

TransUnion receives all types of information about you which is subject to errors or inaccurate data. Sometimes a credit report may show derogatory payment history that does not tell the whole story. Lenders typically view your credit history in “black and white” to determine whether you are a good credit risk or not.

Here are some examples of items to dispute:
o credit cards – charge offs, 30,60,90 day late payments, or a small amount of available credit
o store credit – charge offs, late payments, small amount of available credit
o cell phone suppliers – collections, charge offs
o credit unions – mortgage delinquency, auto delinquency, or any late payments
o banks – any type of delinquency
o state and federal courts – judgment or public record from any type of debt
o bankruptcy courts – Chapter 7, 11, 13, are included in bankruptcy items
o mortgage companies – late payments or foreclosure

What Happens if my TransUnion Dispute Fails to Delete the Bad Credit?
It is important to know that sometimes getting a TransUnion report corrected can be very time consuming and cumbersome. The next step may be to work with the creditor on a resolution. Another alternative is a process called debt validation that is tactical, but highly effective as an escalated dispute process.

If you are unfamiliar with these processes, then you may consider enrolling the services of a credit repair law firm to ensure a quick and effective resolution. A legal professional seasoned in the credit disputing process can help you save time, money and frustration.

Donald

Shayne Sherman asked:




Many people are confused about the difference between judgments on credit reports and a lien, and on the methodology of clearing it up. A judgment against you is simply the result of you losing a case in court. Your creditor goes to court to get a judgment against you for the debt you may owe him. Your creditor takes you to court because there, a judgment can be recorded and enforced and the only other option would be to write off the debt or send it to collection and lose most of it to fees.

If recorded, judgments become matters of public record and if you have property, a title search will turn up items for public record. After a judgment, the creditor can file for discovery of your assets and the judge can order for the sale of your assets. This happens unless the creditor is happy with payments from you in which case they might agree to subordinate their lien position.

A judgment against you lowers your FICO score considerably and you need to remove a judgment from your credit report as a matter of urgency. Check statute of limitations (SOL) for collection judgment because yours may be expired. Also, get a debt negotiator to dismiss the judgment in exchange for money and make sure your negotiations with the judgment creditor are put in writing and are signed. Ensure that the form completed by the judgment creditor is filed in court and reported to credit bureaus. Lastly, you need to understand garnishment laws by state, exceptions, and judgment laws in your state and looks up previous judgment records and if you believe, you were sued in error. If that is the case, you will have to set on a procedure called “motion to vacate” a judgment because about 80% of judgments are awarded in error.

Ann