It’s important to check credit history results on a regular basis.
If you live in America today and have any kind of financial dealings based on credit, the one thing that can greatly impact your financial life is your credit score rating.
"Some debts are fun when you are acquiring them,
but none are fun when you set about retiring them."
- Ogden Nash, American Writer |
An average credit score is based mainly on the credit history report information from three major credit bureaus. Banks, credit card companies, and most lenders use this credit score rating system to evaluate potential risk before lending anyone money.
Credit agencies use a credit score rating scale to decide who should qualify for a loan, what interest rates they should pay, andr what credit limit they should have.
As a consumer, you need to check credit history results regularly, especially before you think of applying for a loan or a new mortgage. By law, you are entitled to one free copy of your credit history report, from each agency, once in every twelve months. Right, you are entitled to a FREE copy, especially if you have been denied credit because of something that is reported on your credit history.
Under the Fair Credit Reporting Act, all credit reporting agencies - as well as creditors - are required to correct any information that is inaccurate.
A few simple steps can be followed in order to correct any inaccuracies. Failing to do so leaves these companies at risk of you taking legal action against the company for damages, statutory penalties, and attorney’s fees and costs.
First, see that the information contained in your credit history at the three major credit bureaus - Experian, Equifax and Trans Union - is accurate. You want to check credit history information in order to verify whether or not there has been any unlawful use of credit in your name, as well as any inaccurate reporting.
As you read your credit report, understand that your credit history score and historical data is legally accessible to outside organizations for limited purposes only. Marketing companies are able to buy mailing lists based on the criteria they choose for the purposes of targeting qualified consumers for mass mailings. While your name may be included in the list, they do not see your specific/individual credit history information.
In reading your report, check for who has accessed your information. If you spot any discrepancies, contact the agency immediately. Sometimes one credit file can accidentally become merged with another, giving you an unfair and potentially adverse credit score. The agency is legally required to clear this up immediately, but you will need to notify them using their established process.
To check credit history reports, send written requests by certified mail to the credit reporting agencies. Creditors and debt collectors are required to report your account as disputed if you notify them. If they ignore this they can be held liable. You have the right to dispute the information that is erroneous or outdated by filing a dispute application with the credit bureau.
The credit bureau must contact the reporting creditor within five days of receipt of your application. Within 30 days the bureau must notify you of the results along with an updated copy of your credit history report.
If the credit bureau cannot verify information, or if the item is found to be inaccurate, the notation must be deleted from your credit history. If it is verified, get the contact information of the creditor.
To register a dispute, send a letter to the credit bureau, with specific details of your dispute. Send by certified mail, requesting a return receipt.
When you get the receipt, mark your calendar 30 days from the date your letter was signed for. If the bureau does not verify your credit score explanation within 30 days, send a letter demanding immediate removal of the item from your history.
You do have the right to sue a creditor or bureau that violates your rights under the FCRA, but filing a lawsuit can be expensive and time consuming, so it should be your last resort only after all other attempts to remedy fail.
Most people use a lot of credit, and as a result their credit score information is very important to them. These people should check credit history information regularly.
All three major credit agencies are required to provide one free report per year. Request a free report every 4 months, one from each agency, in order to remain informed at no cost.
However, if you don’t use credit, which is what we advise, it's still a good idea to check credit history data at least once a year to ensure someone hasn't stolen your personal identity.
Most of all, remain determined to live debt free. Doing so will ensure you are way ahead of the vast majority of American’s.
"Money and success don't change people;
they merely amplify what is already there."
- Will Smith, Actor |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
