L. Sampson asked:




Knowing what is on your credit report can help to keep your personal information safe, give you a chance to correct inaccuracies, and save you money on interest rates when you apply for a home loan. With the wide availability of free or low cost credit reports online, there is no reason to spend a lot of money to find out how credit worthy you really are.

Obtain a free credit report when you sign up for special services

If you are interested in signing up for credit monitoring or similar credit check services, take advantage of a company that offers a free credit report when you sign up for their program. If you are interested in a credit monitoring or counseling program, look for one that offers a free credit report instead of paying for this information.

Go straight to the source

According to the Fair and Accurate Credit Transactions Act, everyone is entitled to receive a free copy of their credit report from each of the three nationwide credit reporting agencies, Equifax, Experian and TransUnion, once every 12 months. You can individually request a copy from each bureau or you can look for online companies that offer a free centralized request form that lets you fill out one form and receive your credit report from all three agencies.

Save money later by not being too thrifty now

While free online credit sites abound on the internet, it isn’t always as free as it sounds. Always thoroughly research any company you are about to request a free credit report from. Some are nothing more than fronts for identity theft scams. Ironically a consumer thinks they are getting a credit report to safeguard their credit, when in truth they are giving away valuable information to identity thieves. While it might seem wonderful to get a credit report for nothing, it won’t seem so wonderful if you have to go through the headache of cleaning up your credit report or if you aren’t able to secure a loan because of fraudulent information on your report.

Dale

thatblissguy asked:


I know that the calculations used by lenders for a mortgage differ from Fair Isaac (FICO). I have TrueCredit (by TransUnion) triple credit monitoring which gives me unlimited access to all three of my credit reports (TransUnion, Equifax, and Experian) AND my FICO scores. I am preparing myself for a refinance and I want to see how I am scoring with the mortgage calculation, since I have improved my scores significantly over the past year when I got my sub-prime mortgage. My one year prepay penalty is coming up in late December and I want to be fully prepared before I start shopping. Also, what ABSOLUTE MINIMUM credit scores do I need, (FICO) and (Mortgage Lender), to be considered for a Prime rate (<7.5%). Thanks for your help, the people that contribute are greatly appreciated and I'm honored for your time and efforts! Keep up the good work!!!
So I just figured out recently that TransUnion's TrueCredit scoring use FACO and not a true FICO. I went to each bureau seperately and got my FICO and heres what I found, its astounding:
TU EXP EQ
FACO: 637* 596 607
FICO: 637* 660 678

*TransUnion only offers this scoring

I was going off this FACO calculation for over a year! Come to find out I have pretty good credit, and the things I have done to improve it had paid off substantially more than I thought in the past! My Mortgage score was MUCH higher than my FICO when I was applying for my first mortgage. So I now feel that my MORTGAGE SCORE should be in the 700s? Does anyone agree with that? That a middle score of 660 FICO would be at least 700 in Mortgage credit scoring?

Beth

Stacy Evans asked:




Did you know that there are three main credit bureaus that handle and monitor your credit? Consequently, you have three separate credit scores and credit reports. Annually, you are entitled to one free credit report, per bureau. It is important to check all three credit reports because each report is different. The same account that will appear on an Experian report may not show up on a TransUnion report.

Equifax was founded in 1899; it is the oldest U.S. consumer credit report agency. Equifax was originally known as “Retail Credit” until 1975 when the company was accused of issuing personal information such as marital troubles, sex life and political views to creditors. As a result, creditors would base credit worthiness on the premise that if you participate in deviant sexual practices or abuse your spouse, it is likely that you could not be trusted to back a loan. That same year, Retail Credit announced that it would computerize its files. As a result, they were brought to court by a Columbia University Professor Alan Westin. The professor argued that computerizing information presented a threat to a civil liberties and privacy. He also argued that the company would give information to almost anyone who wanted it. Accordingly, the Fair Credit Reporting Act was created later that year.

Decades after rebuilding its reputation, Equifax now has offices in approximately 14 countries. The company also works very closely with the government to make certain that they do not violate any privacy laws. Though they do adhere to these laws, they reserve the right to report suspicious activity. Experian’s reports and scores are different because they use a different method of collecting information for credit reports and scores. Some credit bureaus use the FICO scoring method while others have adopted methods including, VantageScore and the PLUS Score.

Equifax offers various services and products, including Equifax ID Patrol, Debtwise and Score Watch. ID Patrol monitors your credit file and sends out alerts when important changes are made. For instance, if your private information is found in a suspicious underground internet trading site, Equifax will notify you via e-mail. Debt Wise provides you with a step-by-step plan to quickly pay down your debts. Score watch monitors your FICO score so that you can achieve your ideal score. ID Patrol will give you a thorough explanation on what changed your credit score. Equifax provides several other services, all for a small fee.

All of the credit bureaus offer various services that will help you repair your credit. To find out the best credit monitoring and repair methods without the hassle of everyday research, seek advice from a credit consulting company.

Willie

Gerald Shaw asked:


Credit monitoring is a good way to keep track of changes in your credit scores or credit accounts. It can be a 24 hour service, in which any changes that have been made in your credit whether or authorized or unauthorized by you, is updated immediately. As such this allows you to see whether somebody has hacked into your account or tampered with your credit scores.

In addition, it allows the consumers to keep track of errors that might have incurred in reporting purchases. This eliminates the hassle of rectifying such mistakes, which often takes days or weeks to iron out. Credit monitoring also provides regular reports from all the big three credit agencies Experian, Equifax and Transunion. It removes the need to send hard copy reports on your credit scores. Scouring through a mountain pile of reports and meticulously checking them can sometimes be a pain.

Now, the Congress has mandated an act which requires all three credit agencies to send free reports about consumers’ credit scores, at least once very 12 months. Consumers, can go to the website www.annualcreditreport.com, and check and monitor their credit information from Experian, Equifax and Transunion – all for free. This is the only website online that is authorized by the federal government to give gree credit reports. The problem, however, is that credit bureaus have still not stopped nor has it prevented them to pitch sales or market their services to consumers.

This issue becomes thornier when some credit agencies have posted hyperlinks on www.annualcreditreport.com, which leads consumers to their own websites, and traps them by letting consumers pay for their service for a fee. Some of these hyperlinks can cause confusion among consumers. For example, one client complained that while she was applying for a credit report for free, the link sent her to Experian’s website, and required her to gain access to unlimited reports about credit and credit scores, in exchange for a membership fee.

As such, it is recommended that the Federal Trade Commission must prohibit such forms of manipulation and malpractice of credit bureaus which are selling and marketing their services. It is the right of consumers to checking credit reports for free, and this must be true at all times. Because a credit monitoring company has the obligation to protect consumers’ rights, most especially their credit monitoring information, credit agencies must be transparent about the services they are offering to its consumers, whether they are free or not.



Joan

Chane Steiner asked:


First of all, take a few deep breathes. OK, now let’s get started. Forget about everything you’ve heard about credit repair; the scam stories, the “it doesn’t work” stories…get all of that out of your mind, because it absolutely works and it’s not that difficult at all. Have you ever noticed that the people telling you that credit repair doesn’t work usually have pretty bad credit themselves and haven’t had good credit in a long time? Just something to think about.

Credit Reports

You know you have bad credit, because you can’t get approved for any loans that you apply for, but that’s not good enough. We need to know exactly how bad it is, so let’s get a copy of our credit reports. As you probably already know, there are 3 major consumer reporting agencies (credit bureaus), Equifax, Trans Union and Experian. You will need to get a report from all 3 of them. The best way to do that is to get them separately from each credit bureau. You can do that over the phone or by mail. You can also get your reports through a credit monitoring service.

You can also go to AnnualCreditReport.com and order your reports for free from there, but if you do that you give the credit bureaus an extra 15 days on your investigations. You don’t want to do that. Pay for your reports.

Dispute Negative Items

Under the Fair Credit Reporting Act, you have the right to dispute any information contained on your credit report. This is simply done by writing the credit bureaus a dispute letter. Once they receive your letter, they are required to verify the information with the furnisher. They have 30 days by law to do so. If the information cannot be verified, it must be deleted.

Many people will tell you that if the account is “really” yours, you can’t dispute it. However, if you read the FCRA, it doesn’t say anything about that. Whether or not the account is “really” yours has no bearing on the credit bureaus responsibility to verify it. If it can’t be verified, it must be removed from your report. If the creditor can’t provide verification of your account, they can’t legally report it on your credit reports. It’s that simple.

Build Positive Credit

After you’ve cleaned up your credit report, the key to rebuilding credit is to get positive information reporting. Acquiring new positive accounts is just as important as deleting negative information. One of the best ways to do that is by getting a secured credit card. The interest rates are usually pretty high and the credit limits pretty low, but that’s OK because you are strictly using these cards to build credit. Keep your balances at about 30% of your credit limits.

The most important part of the credit repair process is learning from your mistakes and realizing where you went wrong. Learn to live below your means and budget your money so that you don’t have to go through it again.



Kimberly

Danny Thompson asked:


Because of a new federal law passed in 2005, you can now get your credit report free from all 3 of the major credit bureaus (Equifax, Experian and TransUnion).

Thanks to this legislation, credit reporting agencies are required to provide you with a free copy of your credit report on an annual basis upon your request using the established method. Basically, this boils down to requesting your free reports using from each bureau using the centralized system that was designed for this very purpose. If you contact any of the three bureaus directly they will charge you for the report. This is one great example of where following directions actually pays off!

In previous years one would have to pay as much as $19 or more for just one credit report. Now monitoring your credit is easier thanks to this new federal law. The only problem is that the new law only provides you access to one free credit report per year from each of the three credit bureaus.

Why Credit Monitoring Matters

If you want to keep good track of your credit (as you probably should) you will have to check your credit on a more regular basis. Many financial planners recommend that you check your record on a monthly basis. The easiest way to do this is to sign up for a credit monitoring service that will do the work for you. You can also request your credit report on your own from time to time to check it. You can do this for free by taking advantage of one of the many free credit report promotions available online.

Remember, effectively monitoring your credit is crucial to your financial health because outdated or inaccurate negative information on your credit could potentially cost you a new job, a rental apartment or money in the form of higher interest rates when you borrow from a financial institution — that is assuming you get approved.

If you are not concerned about being a victim of identity theft and only want to check your credit report on a yearly basis, be sure to take full advantage of your rights under the new law and order your free credit report from each agency using the Annual Credit Report centralized system.

This new centralized system offers consumers the opportunity to order credit reports online, via mail, or by phone. Ordering online is of course by far the fastest and easiest way to get a hold of your credit reports from all three agencies. Depending on the information you provide, you may even be able to have instant access to your free credit reports online.

Where to Order your Free Annual Credit Report

Individuals without access to the Internet can request their free credit reports using either the toll-free line or by sending a written request to the the following mailing address:

Annual Credit Report Request Service

P.O. Box 105281

Atlanta, GA 30348-5281

Get Your Credit Report Free Without Delays

When you get ready to request your free reports online, make sure you have all the information you need to request your report handy. Typically they will ask to verify your identity by providing information that only you would have. This is done to protect you and your credit. Having the information you need ready will avoid a delay in receiving your credit report free by mail.



Evelyn

Lisa Carey asked:


Errors on your credit report may take a variety of forms from simple spelling errors or no new address reported to fraudulent uses of your credit to obtain financing for purchases. There are two different ways to correct or “dispute” this information; online or in writing.

If you need a credit report visit “An Overview of the Fair Credit Reporting Act” http://www.identitytheftsecrets.com/an_overview_of_the_fair_credit_reporting_act_what.html for information on how to obtain your free credit report and why you are entitled to one.

Here is a step by step process for disputing your credit report information:

It is important that you receive your credit report from all three major credit reporting agencies: Equifax-800-685-1111 www.equifax.com ; Experian-888-EXPERIAN (888-397-3742) www.experian.com ; TransUnion-800-916-8800, www.transunion.com: as different credit companies report to different agencies. Not all creditors use only one and the incorrect information may appear in different reports. You may obtain your credit report online for free one time a year, with each additional report costing and additional sum, usually $10.00. If you are obtaining your first free annual credit report it will include all three agencies, you do not need to request one for each. However, you may find it more cost effective to use a credit monitoring system with a yearly fee that gives you all three credit reports in one on a periodic basis which you determine.

Next, review your credit report and mark the incorrect information. You may wish to print your report out to do this – especially if you have several mistakes or errors. Be sure to record the name, address, amount and account number if available in your notes.

Third, write the credit reporting agency a letter indicating that specific information if incorrect.

Fourth, attach to the letter any supporting documentation to dispute the inaccurate information. I recommend that one of your attachments be a copy of your credit report with specific errors circled or noted in some manner. You may wish to number them and then address as each numbered point within your letter, especially if you have several errors or mistakes. For example, there were errors on my credit report that all listed a false address and a variation of my name. I provided proof of my name over the period of several years, proof that the address did not exist and proof regarding my primary address that was listed on one, as it was not my address but a rental property.

NOTE: The most important thing you need to do when attaching documents is to include COPIES. Do not send originals as you may need that information for another report or in the future.

Fifth, write another letter to the credit lender providing the information. Indicate to them that you have filed a dispute with the credit reporting agency (Naming it specifically) and provide a copy of supporting documentation of the dispute to that information provider also.

If you are using a credit monitoring system online you may be able to eliminate many of these steps. In many of the better versions of a credit monitoring system, as you pull up the details of each account it offers you the option to “dispute” the information. You simply click on dispute and it will automatically pull up the account information you are disputing. You then has a small amount of space to indicate why you dispute the information and click submit.

After filing either your written letter or online dispute the credit reporting agency will investigate the information and determine if your dispute is accurate or not. They also forward all the information you have provided to the credit lender. Usually within approximately 30 days a decision is made as to the accurateness of the information and the credit lender must provide all three major credit reporting agencies with the corrected information. Also when the investigation is complete, you are entitled to the results in writing; a free corrected copy of your credit report; and if you request it a corrected copy of your credit report may be submitted to other credit providers that you may be trying to obtain credit from. For example, you may discover the errors while attempting to purchase a car or home. A corrected copy will be provided to the lender upon your request. If your dispute is denied, resubmit it with additional documentation or contact the credit reporting agency to determine what information would be convincing.

Disputing your credit is not something you need to hire a specialist to do, and many of those “get help repairing your credit report” programs are scams that are used to obtain your information for their own identity theft purposes or just to make money. Remember, negative information on your report that is correct can not be removed, no matter what someone may offer. This is a simple easy process, which involves very little cost to you. The only cost you incur is your postage and copies. For just a few dollars and a little effort you can save yourself money and permanent damages to your credit report. It’s well worth the effort.

Sample letter:

* Date

Your Name

Your Address, City, State, Zip Code

Complaint Department

Name of Company

Address

City, State, Zip Code

Dear Sir or Madam:

I am writing to dispute the following information in my file. I have circled the items I dispute on the attached copy of the report I received.

This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be removed (or request another specific change) to correct the information.

Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.

Sincerely,

Your name

Enclosures: (List what you are enclosing.)

* Source: Federal Trade Commission



Walter

Liz Roberts asked:


Whenever somebody applies for credit or financing, his or her credit report will be pulled electronically from any of the three major consumer reporting agencies (CRA). These CRAs are Experian, Trans Union, or Equifax – companies that are responsible for maintaining correct and up-to-date credit information around the country. Everyone is probably aware that these three nationwide credit bureaus have to monitor billions of data records therefore it is not inevitable to find errors with the reports. A majority of consumers would have at least one omission or inaccurate detail on their credit report.

It is for this very reason that as a consumer, the responsibility of checking your own credit information falls on your shoulders. Make sure that you get a copy of your credit report from each of the three Credit Reporting Agencies. You should contact each credit bureau and ask for your free credit report (you are entitled to 1 free copy every year). If you have been denied credit within the past 60 days, you are also entitled to a free credit report.

Here is a list of each credit bureau. Make that call and start checking your credit info.

Equifax, P.O. Box 740241, Atlanta , GA 30374-0241;(800) 685-1111.

Experian(formerly TRW),P.O. Box 2002, Allen, TX 75013; (888) EXPERIAN (397-3742).

Trans Union , P.O. Box 1000 , Chester , PA 19022 ; (800) 916-8800.

Using The Internet To Obtain Your Credit Report

You can also use the internet to obtain your credit report. Many companies offer instant access to your credit report online and will offer you a free credit report if you try their credit monitoring service for 30 days. Credit monitoring services are a great way to keep track of your credit and stop potential identity thieves. As soon as you or someone else applies for credit using your name and social security number, these services will alert you via email. If you did not request this new credit you just need to log into your account and start the process of alerting the credit bureaus of potential fraud activity.

How is the information found on your credit report used

The credit information that is reported on your credit report will be used to evaluate you when you apply for credit, insurance, employment, and other purposes allowed by the Fair Credit Reporting Act (FCRA). Therefore it is crucial that you review your credit reports for accuracy from at least annually.

Why is it important to monitor your credit report

By monitoring your credit report you will save yourself a lot of problems or unpleasant surprises when you have to get that credit card or if you’re considering buying a home. You will also be aware of any potential problems that may stop the credit grantor from approving you for the credit you seek. Knowing exactly what a lender will see when they pull your credit will allow you either try to dispute the items and have them removed from your report or prepare explanations for the credit problems and discuss them with your potential lender BEFORE you apply for that line of credit.

What to do if you find inaccurate information

- Be meticulous in examining your credit information. If you see any discrepancies, verify them as soon as possible. The law says that the credit bureau should examine the matter within a reasonable amount of time, usually 30 days.

- Dispute inaccurate information your credit report. Some credit repair specialist suggests you dispute items one at a time. Some say do it all at once. I have had clients that have done both, and there was never any one way that was more successful then the other in our case. I truly believe it depends on the agent you get at the credit bureau.

- Write an ORIGINAL dispute letter. Don’t just copy a form you found online. If you found it, then so did potentially hundreds if not thousands of other people. The agents at the credit bureaus in the disputes area have probably seen any freely given online dispute letter hundreds if not thousands of times. They will not take your request as seriously as they should if you do this.

The credit bureau is required to investigate and if that item cannot be confirmed within a reasonable amount of time, that credit record must be removed from the credit file. They must provide you with a free copy of your corrected credit report. Send your dispute letter to the credit bureau via certified mail, return receipt requested. If you are using a credit monitoring system you can do this online. Just make sure they send your dispute to all 3 agencies. If the credit bureau completes its investigation and decides that the negative information should remain in your file, you can add a letter of explanation to your credit report to refute the claim.



Marilyn

Gerald Shaw asked:


Why the hassle for a good credit score? For one, a good credit score means a better chance of having a good credit with lesser interest rates. As what experts would say, a higher credit score is needed in order for you to enjoy premium interest rates. Credit experts also have a say on how will you be graded. And according to them, a score of 760 is needed for you to enjoy this “interest benefits”.

Individuals with a lower credit score can still have a loan or credit lines; however, they also have the disadvantage of having higher interest rates. So how can you get a good credit score? Experts say that you have to be well-informed on everything that involved your credit. With this, you can have an up-to-date payment and lower balance rates which are the key factors in determining your credit score.

Aside from the monitoring information regarding your credit, companies like SpendOnLife and its partner MyCreditHealth offers a round-the-clock monitoring services. With this kind of service offered, consumers can be assured of complete and accurate information regarding their credit history. Errors and omissions can be dealt with early on so your credit score can now be updated with the three credit bureaus -Equifax, Experian and TransUnion. And this can only mean one thing, and that is a higher chance of having a passable credit score.

Another service that these companies offer is detection of fraud and identity theft. These companies provide alerts for credit information changes like record changes such as change of address, employment changes, new accounts and new charges. An alert is also sent off if credit inquiries, negative information and delinquencies are detected in your credit records. Credit reports are sent in monthly basis, so you could monitor your credit score standing and your progress. Credit reports are presented in a very-readable manner for you to know if you are now ready to approach lenders.

Get a high credit score and enjoy best deals there is. With these credit monitoring information in mind, you now have the chance of having that financial liberty. MyCreditHealth and SpendOnLife are just some of the companies that offers credit monitoring. You can visit their sites and know more about the services they offer. Know more about these credit monitoring companies and choose the one that best suits your credit needs. You can pretty sure gauge if they have just what you need.



Delores

j0b0123 asked:


Don’t be afraid to look at your credit report.  In fact, considering how often identities are stolen, it’s almost a given that at some point in everyone’s lives something bad will occur to them in regard to credit.  Someone takes out a card in your name, someone uses your name to subscribe to a cell phone service etc – the list is endless.  While it takes them but minutes to do the dirty deed – unwinding the mess can take months.  Its much easier if you catch it early on than trying to undo it later after there is far more damage done.  So it should be a regular thing to go online to one of the main credit bureaus – EquiFax, Trans Union, or Experian.  Every person is entitled to get a free copy of your credit report each year – you should not have to pay for it.  However, most people should check their reports more often.

This is where a credit monitoring service can come in handy.  Sure, it costs a bit of money, but they also notify you by mail and by email of ANY changes to your credit report – this way you can catch stuff really quickly, such as some lowlife in another state applying for credit in your good name.  If you are on top of it, this really is not necessary, but in todays busy world, often this is a good idea.  Just make sure you know and recognize any and all companies you might give information to for a monitoring service.  There are a ton of scams out there.  You can get this service thru the credit bureaus directly, or often times you can call up your credit card company and they will offer you this service as well.

If you ever notice an issue on a credit card statement or your credit report, call the company whom the issue is with immediately.  Whatever you do, if there are charges on a credit card you did not authorize or actually make DO NOT PAY YOUR BILL UNTIL YOU HAVE DISPUTED THE ISSUE.  If you pay the bill, then that is basically saying you agree with all the charges.  It only takes 15-20 minutes to call up the company and dispute the charges.  Of course if you have paid the bill (unless its paid in full, and there is no balance on the card), you can still dispute it, but its harder to because they expect that you have reviewed all charges and by paying you agree they are valid.  This goes with anything that shows up in the mail that says you owe for XXYY service that you never authorized.  Don’t pay it, even partially,  or you basically are agreeing the charges are valid.

Make sure you document everything you discuss on the phone in writing.  Get the name of the person whom you speak with – First and Last name, and note the date and time.  Make good notes about exactly what you disputed and when you first discovered the issue.  If it was on a monthly statement, make sure you make a copy of the monthly statement for your records.  Also make it clear when speaking with them that the charges are completely unauthorized, and you have no affiliation with the retailer or service in question.  You will need these notes in case somehow your complaint is not addressed or is brushed off.  It does happen – you have written proof you talked to someone.  Most companies however, are very good about this type of stuff and will take the charges off your card while they do an investigation.  You will receive a letter in the mail in a few days asking you to describe everything that happened.  This is where your notes and statement copies come in handy.  Get all the requested info together and mail back as quickly as possible.  This will speed things along and make it seem you are serious about the charges.  Most of these letters will have a “due date” where if you do not reply by that date, they will consider the case closed.  Do not let this happen, it is extremely hard to re-open the case if you do this and you may be stuck with the charges.

Most of the time, this will resolve the case within a week or of you mailing the required information back to the company.  As a final tip, in the meantime – while they are investigating – DO NOT go to that retailer or service and charge stuff – if you must go there, use a different card or pay with cash or a debit card.  After all, it’s kind of hard to dispute a charge from Macy’s, then while its being investigated you are busy charging at Macy’s – it just does not look good.



Grace