Beware of Errors in Your Credit ReportPosted on September 29th, 2011 | admin
Most people have heard that errors can occur in their credit reports but they may be unaware of how often they actually do happen. The U.S. Public Interest Research Group, an advocacy group, released a survey which indicates that eight out of every ten credit reports contained errors. They weren’t minor errors either. One out of every four reports had errors that were serious enough that they would have prevented the borrower from getting a loan or credit.
The Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau (CFPB) is currently looking into the problem of errors in individual credit reports. This Bureau which was created as part of the Dodd-Frank Wall Street Reform and Protection Act is looking at the possibility of having to oversee the main credit bureaus. If this happens consumers will have stronger weapons to fight back against errors in their credit reports. The U.S. Public Interest Group is in favor of some type of supervision of the credit bureaus, and credit scoring companies. Brian Imus with the Group recently stated that their research has found that almost one fourth of the credit reports surveyed had serious errors. “Despite the fact that errors can harm your credit and lower your credit score, the bureaus have never once been held accountable for their mistakes,” Imus said.
What you can do
“We are recommending that consumers check their credit reports because both the companies and the regulators are falling down on the job,” said Ed Mierzwinksi with the Public Interest Group. Start the process by requesting reports from all three credit bureaus. You are entitled to one free report annually but if you need to check on a more frequent basis just pay the nominal fee for your report. You need to request reports from Experian, TransUnion, and Equifax.
Checking the report
When you get the report first check the personal information provided in the report including your name, address, birth date, Social Security number for any errors. The next section to check is the credit data which supplies information such as tax liens, court judgments, collection proceedings, and credit inquiries. One of the main things to check in both the personal and credit data sections is for signs of identity theft. Look for credit cards or loans that are fraudulent – that you did not apply for.
If you find errors take action
If you do find an error in your credit report it is up to you to do something about it. Get all the evidence you can including canceled pay checks or bank statements, credit card bills and then submit a dispute to the credit reporting agency. Be sure to include as much detail as you can find. You can either mail the information by certified mail or you can file online at the credit bureau website. Disputes must be investigated within 30 days. Begin here for information about how to repair your credit.
How to Know Your Credit Score Right Now – Important FactsPosted on March 16th, 2011 | admin
If you don’t know how to know your credit score then you really need to check your score to get the information the three major credit report bureaus have on file about you because there could be errors on just one of their reports and just one error on one of the big 3 credit reporting bureaus have on file about you could have a major impact on your credit worthiness in the eyes of lenders.
If you have any questions about credit score ratings please take a moment to read our article about “How to Get a Good Credit Score” and in particular the section of that article that features what the credit score numbers mean (Click here to read).
Since you want to know how to know your credit score you’ll likely benefit from reading the article above and I say this because if you don’t know roughly what you’re credit score is then you’re going to likely need to learn more about the credit score numbers and what they mean.
I do have to tell you that you’re wise to want to know what your credit score is because your credit score, also known as your FICO score will have a major impact with potential lenders about their opinion of your credit worthiness.
Whether the credit you want is a credit card, a mortgage loan, personal loan or heck even getting approved for a cell phone contract your credit score will impact your ability to get any of the mentioned approvals so knowing your score before you do anything remotely in regards to applying to get anything with an ongoing payment schedule, your credit score will play a roll in your acceptance.
In fact you should order a copy of your 3-in-1 credit score now because there are 3 major credit bureaus and your score may vary due to possible inaccuracies so you’ll want to make sure any discrepancies are solved before you apply for any form of credit because each and every time a credit check is run on you, it lowers your credit score and that’s why it is very important to know your credit score rating with all 3 major credit bureaus before you think about doing anything financially related.
How to Check Your Credit Score Now
As I’ve alluded to already, there are 3 major credit bureaus, TransUnion, Equifax and Experian, which all have your credit score on file and the results they have could vary so it’s critical that you don’t just check one credit bureau score, to get a true picture of how lenders could be seeing you, you’ve got to see the entire picture and order a 3-in-1 credit report, that’s the only way to know your credit score.
If you’ve got any questions or concerns about checking your credit score please go ahead and submit your comments here on this blog that is devoted to helping you increase your financial intelligence in plain, simply and easy to understand language and if you want to understand what the credit scoring numbers mean then make sure your read the article we wrote about What is a Good Credit Score because it’s important that you know what the credit score (aka FICO score) numbers mean.