Credit Bureau Report – Understanding Your Credit Rating
Posted in credit laws on 12/08/2010 08:22 pm by
Posts Tagged ‘credit rating’
Repairing Your Credit Score and Clearing Derogatory Marks on Your Credit Report
Posted in Finance on 10/01/2010 05:03 pm by
Justin Smith asked:
Raising your credit score can be a fairly simple and straightforward process unless you have derogatory marks that need to be disputed (which will be explained below).
The reasons for bad credit can be as follows, high balances, bankruptcies, late payments, and many others. The most significant thing you can do to raise your score is to change your financial habits. Chances are that if you have a bad credit score, you did something to make it that way. Here are some of the best ways to quickly raise your credit score:
1. The most obvious: pay off your debt! This doesn’t include a home mortgage, but revolving balances such as credit card debt, a car loan, etc.
2. Make every payment on time. This is the most important factor in your credit score rating. If you have had late payments in the past, it will take some time to see real results from your on-time payments, but keep it up, sooner or later the credit bureau will notice the change in your payment habits. Develop the mentality that no late payment is acceptable!
3. If possible, pay over your minimum amount. This is especially important with credit card balances, and will reflect a slight boost in your score.
4. If you have paid off all your debt, and your credit score seems to be at a stand still, you might want to make small purchases each month with your credit card and pay them off immediately. Often times the credit bureaus like to see at least some kind of activity. Otherwise, they have no way to gauge how you are doing financially.
5. Be patient! Sometimes repairing credit can be a long and arduous process. Especially if you have had a bankruptcy. It can often take the better part of a year or more to see any significant raises in your score.
Clearing a derogatory mark on your credit report:
This is probably the most difficult in regards to credit repair. If you have requested a copy of your credit report, and notice a problem (an example would be a late payment mark), that shouldn’t be there, you need to take action to get the derogatory mark cleared as soon as possible. It is extremely important to get your credit score cleared before you attempt to get prequalified for mortgage.
Here are the steps you should take:
First of all, if you are in contact with a loan officer, you may want to describe the problem you are having to them. They can be very helpful when it comes to credit repair, and should know exactly what to do if you have a bad mark on your credit that is a mistake. In some cases, they may even call the creditor for you to address the situation.
Second, you should call your creditor and each credit bureau to find out which course of action you should take. In most cases, writing a letter will do. Here is an example letter:
Date 00/00/00
Dear Big Credit Bureau,
This letter is a complaint that you are reporting inaccurate and/or incomplete credit information on my credit report.
I am displeased that you have included the below information in my credit profile that includes the following errors. Credit reporting laws ensure that bureaus report 100% accurate credit information.
The following information concerning my credit report needs to be re-investigated. I respectfully request to be provided proof of this alleged item on my credit report. If this cannot be provided, the item must be deleted from my report as soon as possible:
CREDITOR AGENCY, acct. 123-34567-ABC
The listed item is inaccurate and/or incomplete, and is a serious error in reporting. Please delete this information, and supply a corrected credit profile to all creditors who have received a copy within the last 6 months, or the last 2 years for employment purposes. Also, please provide the name, address, and telephone number of each credit grantor or other subscriber.
Under federal law, you have 30 days to complete your re- investigation. Be advised that the description of the procedure used to determine the accuracy and completeness of the information is hereby requested as well, to be provided within 15 days of the completion of your re-investigation.
Sincerely,
your signature
Your Name
SSN# 123-45-6789
Unfortunately, you will need to write 3 separate letters to each of the 3 major credit bureaus. Here are the contact addresses for each:
Trans Union
P.O. Box 1000
Chester, PA 19022
1-800-888-4213
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
1-800-997-2493
Experian
P.O. Box 2104
Allen, TX 75013-2104
1-888-397-3742
Susan
Raising your credit score can be a fairly simple and straightforward process unless you have derogatory marks that need to be disputed (which will be explained below).
The reasons for bad credit can be as follows, high balances, bankruptcies, late payments, and many others. The most significant thing you can do to raise your score is to change your financial habits. Chances are that if you have a bad credit score, you did something to make it that way. Here are some of the best ways to quickly raise your credit score:
1. The most obvious: pay off your debt! This doesn’t include a home mortgage, but revolving balances such as credit card debt, a car loan, etc.
2. Make every payment on time. This is the most important factor in your credit score rating. If you have had late payments in the past, it will take some time to see real results from your on-time payments, but keep it up, sooner or later the credit bureau will notice the change in your payment habits. Develop the mentality that no late payment is acceptable!
3. If possible, pay over your minimum amount. This is especially important with credit card balances, and will reflect a slight boost in your score.
4. If you have paid off all your debt, and your credit score seems to be at a stand still, you might want to make small purchases each month with your credit card and pay them off immediately. Often times the credit bureaus like to see at least some kind of activity. Otherwise, they have no way to gauge how you are doing financially.
5. Be patient! Sometimes repairing credit can be a long and arduous process. Especially if you have had a bankruptcy. It can often take the better part of a year or more to see any significant raises in your score.
Clearing a derogatory mark on your credit report:
This is probably the most difficult in regards to credit repair. If you have requested a copy of your credit report, and notice a problem (an example would be a late payment mark), that shouldn’t be there, you need to take action to get the derogatory mark cleared as soon as possible. It is extremely important to get your credit score cleared before you attempt to get prequalified for mortgage.
Here are the steps you should take:
First of all, if you are in contact with a loan officer, you may want to describe the problem you are having to them. They can be very helpful when it comes to credit repair, and should know exactly what to do if you have a bad mark on your credit that is a mistake. In some cases, they may even call the creditor for you to address the situation.
Second, you should call your creditor and each credit bureau to find out which course of action you should take. In most cases, writing a letter will do. Here is an example letter:
Date 00/00/00
Dear Big Credit Bureau,
This letter is a complaint that you are reporting inaccurate and/or incomplete credit information on my credit report.
I am displeased that you have included the below information in my credit profile that includes the following errors. Credit reporting laws ensure that bureaus report 100% accurate credit information.
The following information concerning my credit report needs to be re-investigated. I respectfully request to be provided proof of this alleged item on my credit report. If this cannot be provided, the item must be deleted from my report as soon as possible:
CREDITOR AGENCY, acct. 123-34567-ABC
The listed item is inaccurate and/or incomplete, and is a serious error in reporting. Please delete this information, and supply a corrected credit profile to all creditors who have received a copy within the last 6 months, or the last 2 years for employment purposes. Also, please provide the name, address, and telephone number of each credit grantor or other subscriber.
Under federal law, you have 30 days to complete your re- investigation. Be advised that the description of the procedure used to determine the accuracy and completeness of the information is hereby requested as well, to be provided within 15 days of the completion of your re-investigation.
Sincerely,
your signature
Your Name
SSN# 123-45-6789
Unfortunately, you will need to write 3 separate letters to each of the 3 major credit bureaus. Here are the contact addresses for each:
Trans Union
P.O. Box 1000
Chester, PA 19022
1-800-888-4213
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
1-800-997-2493
Experian
P.O. Box 2104
Allen, TX 75013-2104
1-888-397-3742
Susan
Building a Better Credit Score by Adding Information to Your Credit Report
Posted in Finance on 08/14/2010 10:01 am by
Mark Andrade asked:
In addition to disputing incorrect information on your credit report, you can also add accounts to it that make you look more credit worthy. If, when you review your report, you noticed accounts that were not listed on it that paint you in a positive light, you can ask the credit reporting agencies to include these accounts on your report. Doing so will help in your quest to build a more positive credit rating and higher credit score.
There are three types of information you might want to have added to your credit history to build your score:
Explanation of any incomplete or disputed information Positive account histories not included in your report Information demonstrating reliable payment and employment, stability
Often credit reports don’t include accounts that you might expect to find. For instance, some major commercial lenders don’t report mortgages or car loans. Also, local banks or credit unions frequently don’t provide information to credit reporting agencies.
If your credit report is missing credit histories for accounts you pay on time, send the credit reporting agencies a Letter Requesting Inclusion of Accounts, along with copies of recent account statements. Ask the credit bureau to add information on these accounts to your file. While the agencies aren’t required to add account histories, they often do, but you might be charged a fee.
Another option is to go straight to your creditor and ask that they report the information directly to the credit reporting agencies. However, some creditors categorically refuse to do this as they only report to one or two agencies and won’t consider changing their standard business practices. But it’s worth a try.
You may find that credit histories for accounts you pay on time are only missing from one or two credit reports. The third report might already include all your accounts or maybe you focused on cleaning up that report first. If this applies to you, send the agencies with the missing information a copy of your all-inclusive report with a letter asking the missing data be added to your file.
Creditors also like to see verification of stability so consider asking any evidence you have of that be added to your account. Creditors are most likely to add updated information on employment and residences because it’s used in evaluating credit applications. However, if your report is missing data or contains obsolete or incorrect information on your phone number, date of birth, or social security number it is beneficial to update those as well to reduce the risk of account mix-ups.
Once you’ve repaired your credit, request a copy of your report from each credit bureau. You are entitled to one free credit report from each of the credit reporting agencies annually. Look for anything old or inaccurate. Conducting an annual credit check and adding positive accounts previously omitted, can help ensure you maintain the highest credit ratings possible and avoid being a victim of identify theft.
Diana
In addition to disputing incorrect information on your credit report, you can also add accounts to it that make you look more credit worthy. If, when you review your report, you noticed accounts that were not listed on it that paint you in a positive light, you can ask the credit reporting agencies to include these accounts on your report. Doing so will help in your quest to build a more positive credit rating and higher credit score.
There are three types of information you might want to have added to your credit history to build your score:
Explanation of any incomplete or disputed information Positive account histories not included in your report Information demonstrating reliable payment and employment, stability
Often credit reports don’t include accounts that you might expect to find. For instance, some major commercial lenders don’t report mortgages or car loans. Also, local banks or credit unions frequently don’t provide information to credit reporting agencies.
If your credit report is missing credit histories for accounts you pay on time, send the credit reporting agencies a Letter Requesting Inclusion of Accounts, along with copies of recent account statements. Ask the credit bureau to add information on these accounts to your file. While the agencies aren’t required to add account histories, they often do, but you might be charged a fee.
Another option is to go straight to your creditor and ask that they report the information directly to the credit reporting agencies. However, some creditors categorically refuse to do this as they only report to one or two agencies and won’t consider changing their standard business practices. But it’s worth a try.
You may find that credit histories for accounts you pay on time are only missing from one or two credit reports. The third report might already include all your accounts or maybe you focused on cleaning up that report first. If this applies to you, send the agencies with the missing information a copy of your all-inclusive report with a letter asking the missing data be added to your file.
Creditors also like to see verification of stability so consider asking any evidence you have of that be added to your account. Creditors are most likely to add updated information on employment and residences because it’s used in evaluating credit applications. However, if your report is missing data or contains obsolete or incorrect information on your phone number, date of birth, or social security number it is beneficial to update those as well to reduce the risk of account mix-ups.
Once you’ve repaired your credit, request a copy of your report from each credit bureau. You are entitled to one free credit report from each of the credit reporting agencies annually. Look for anything old or inaccurate. Conducting an annual credit check and adding positive accounts previously omitted, can help ensure you maintain the highest credit ratings possible and avoid being a victim of identify theft.
Diana
Bad Credit Repair – How To Restore Your Credit And Your Life
Posted in Finance on 07/26/2010 12:54 am by
Conleth Onu asked:
It is often difficult for us when we have bad credit and not knowing where to start to get back on our feet again is even more frustrating.
If you have bad credit, you might want to check into a few resources that can help you find a solution to your credit problem. Life does not have to be difficult and all of us make mistakes.
Bad credit is an obstacle and if you want to run you are about to get yourself into a situation that you do not really need. There is always a solution to most problems. The problem most times is some of us do not have the means to find solutions to our problems.
In this article, I am going to make it quick and to the point, helping you repair your credit through the process.
So the first step is to collect copies of your credit report from the major credit bureaus. Credit bureaus compile and sell information about consumers and are a principal source of information about your credit history.
You are entitled to receive a free copy of your credit report if you have been denied credit within the past 60 days. If you have not been denied credit within the past 60 days, you can order your credit report by paying a fee.
Next, review your credit report watching closely for errors (items that do not belong to you). Dispute any errors on your reports immediately with the credit bureaus. Any errors or inaccurate information will be deleted.
Under the Fair Credit Reporting Act, all negative information seven years old or more must be deleted. Bankruptcy stay on credit report for up to 10 years or longer.
Once you dispute the negative information, you will receive a copy of your report from the credit bureau, showing the items that were removed and the items that were verified as accurate. The dispute method of removing negative information from your credit file can improve your credit rating.
The Internet offers credit report information, guides, and kits, which can lead you in the right direction to repairing credit. You might want to surf the Net for resources that can help you find a way out of bad credit.
Debbie
It is often difficult for us when we have bad credit and not knowing where to start to get back on our feet again is even more frustrating.
If you have bad credit, you might want to check into a few resources that can help you find a solution to your credit problem. Life does not have to be difficult and all of us make mistakes.
Bad credit is an obstacle and if you want to run you are about to get yourself into a situation that you do not really need. There is always a solution to most problems. The problem most times is some of us do not have the means to find solutions to our problems.
In this article, I am going to make it quick and to the point, helping you repair your credit through the process.
So the first step is to collect copies of your credit report from the major credit bureaus. Credit bureaus compile and sell information about consumers and are a principal source of information about your credit history.
You are entitled to receive a free copy of your credit report if you have been denied credit within the past 60 days. If you have not been denied credit within the past 60 days, you can order your credit report by paying a fee.
Next, review your credit report watching closely for errors (items that do not belong to you). Dispute any errors on your reports immediately with the credit bureaus. Any errors or inaccurate information will be deleted.
Under the Fair Credit Reporting Act, all negative information seven years old or more must be deleted. Bankruptcy stay on credit report for up to 10 years or longer.
Once you dispute the negative information, you will receive a copy of your report from the credit bureau, showing the items that were removed and the items that were verified as accurate. The dispute method of removing negative information from your credit file can improve your credit rating.
The Internet offers credit report information, guides, and kits, which can lead you in the right direction to repairing credit. You might want to surf the Net for resources that can help you find a way out of bad credit.
Debbie
How Do You Repair and Restore Your Credit Rating?
Posted in Finance on 06/23/2010 01:32 pm by
Tony Banks asked:
You want to make sure that as a consumer with credit issues that you follow the specific steps needed to restore your credit. Observing these steps will ensure a boost in your score in no time.
The first thing you want to do is to get a credit report from each of the three major credit report bureaus (Equifax, Transunion and Experian). You are entitled to a free copy yearly from each of the major credit report bureaus. You can download those three reports instantly from annualcreditreport dot com.
Now that you have obtained the three credit reports from the three major credit bureaus, you are to review each of these reports carefully. There are some items you might find in one credit report which you might not find in the other so it is important that you review each of the reports carefully. You are to write out any negative items in the order of the most damaging on your credit report. You are to watch out for new negative items on your credit report. New negative items that are added have more effect on your credit score than the older ones. So, keep in mind to deal with each of the negative items as they appear on your credit report. You also want to watch out for items on your report that are not yours, errors made to your personal information and accounts which you have paid in full but still show a balance.
The next and important step is for you to send dispute letters to the bureau for each of the negative items you found on your report. The law allows you to give a reason for dispute and the most popular and effective reason is the account ‘is not mine’. With this dispute reason, if the account could not be verified by the creditor when the credit bureaus send over their investigation, the account will have to be deleted. Keep in mind that you can dispute about anything on your account. Due to bad record keeping by the creditors, most accounts might not be verifiable so most negative items on credit accounts end up deleted.
Do not dispute multiple negative items on a dispute letter. It will most likely be categorized as ‘frivolous dispute’. It is important that you deal with each of the negative item on your credit report one dispute letter a time. Send your dispute letters by registered mail and keep records of every dispute letter the credit bureau receives. With these records, you will be able to prove with specific dates when you sent your disputes letters and when the credit bureau receives your dispute letters.
Once your letters have been received by the credit bureau, they are obligated by the law to start investigating your cause for dispute. You should know the outcome of the investigation in thirty days. If your request is granted, you will receive an updated copy of your report showing that the corrections have been made. If the account is verified and your request is not granted, you will have to dispute your account with your original creditor.
Glenda
You want to make sure that as a consumer with credit issues that you follow the specific steps needed to restore your credit. Observing these steps will ensure a boost in your score in no time.
The first thing you want to do is to get a credit report from each of the three major credit report bureaus (Equifax, Transunion and Experian). You are entitled to a free copy yearly from each of the major credit report bureaus. You can download those three reports instantly from annualcreditreport dot com.
Now that you have obtained the three credit reports from the three major credit bureaus, you are to review each of these reports carefully. There are some items you might find in one credit report which you might not find in the other so it is important that you review each of the reports carefully. You are to write out any negative items in the order of the most damaging on your credit report. You are to watch out for new negative items on your credit report. New negative items that are added have more effect on your credit score than the older ones. So, keep in mind to deal with each of the negative items as they appear on your credit report. You also want to watch out for items on your report that are not yours, errors made to your personal information and accounts which you have paid in full but still show a balance.
The next and important step is for you to send dispute letters to the bureau for each of the negative items you found on your report. The law allows you to give a reason for dispute and the most popular and effective reason is the account ‘is not mine’. With this dispute reason, if the account could not be verified by the creditor when the credit bureaus send over their investigation, the account will have to be deleted. Keep in mind that you can dispute about anything on your account. Due to bad record keeping by the creditors, most accounts might not be verifiable so most negative items on credit accounts end up deleted.
Do not dispute multiple negative items on a dispute letter. It will most likely be categorized as ‘frivolous dispute’. It is important that you deal with each of the negative item on your credit report one dispute letter a time. Send your dispute letters by registered mail and keep records of every dispute letter the credit bureau receives. With these records, you will be able to prove with specific dates when you sent your disputes letters and when the credit bureau receives your dispute letters.
Once your letters have been received by the credit bureau, they are obligated by the law to start investigating your cause for dispute. You should know the outcome of the investigation in thirty days. If your request is granted, you will receive an updated copy of your report showing that the corrections have been made. If the account is verified and your request is not granted, you will have to dispute your account with your original creditor.
Glenda