Curiosity Killed Your Cat Not Me asked:


I opened a credit card account through my old employer (Circuit City) in 2001 when I was 17. I made payments on time until 2002 when I joined the Armed Forces and was unable to pay on my account due to not having the account information available at the time. Consequently, it was keyed negative on my credit report and by the time I was done with Basic Training it went to collections. The collection agency was sending bills to collect the debt back home. When I had the chance to receive the letters, I called the collection agency and made an arrangement to pay the debt. The credit bureau then marked it as a charge off; paid in full on my credit report. After a few years I tried disputing this hoping to get it removed, but the bank denied the request. So I’ve been suffering since and now its 2007. I guess I supposed to wait until 2009. My questions are, can I get this removed and when it is removed will my credit score rise? When inquiries disappear from my credit report, will it rise?

Nicholas

deputy875 asked:


I just paid off a car through a lender that does not report to the credit bureau. I heard you can report it to the credit bureau, but I am not sure how. I have a copy of my payment history and contract, but not sure what all I will need and who to turn it in to?? Any suggestions?

Roberta

mindthetwine asked:


I received a letter from a debt collection agency this past December. Because I did not recognize the debt, I disputed the item and asked for detail on what the debt was for (in December). I never received a response and followed-up in February, to which I also received no response. About three weeks ago, I sent a certified letter requesting the same information and have yet to hear from the agency. Then, I noticed on my credit report last week that they have reported this debt. Can they do this? Do I have any remedies under the law?

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Stephen Chua asked:


Your credit report contains vital information that affects your credit score. Every time you take up a loan or apply for credit, your lenders will access your credits report to see if you qualify for the it. Thus it is imperative that you constantly monitor your credit report to make sure it is in good health.

Given the monstrous amount of data each credit bureaus process on a daily basis, there are bound to be errors in one form or another. Here are a few common errors found in credit reports:

1. Incorrect spellings

This can happen to your name, addresses, telephone number, email address, social security number and so forth. Misspelling can means your report contains negative records that belong to someone else! Just fixing these minor details can give you a significant boost in your credit score.

2. Information that should not be there

Most negative records should disappear from credit report in seven years or less. The exception being bankruptcy which can stay in the report for up to ten years. Make sure to go over the negative records in your credit report and look out for those records that should not be there.

3. Double listing of loan information

This may come as a shock for many people when they noticed that their mortgage loans (or other loans) have been listed more than once in their credit reports. This will inflate the debt amount artificially and increase the debt-to-credit ratio (which is not a good thing).

Lenders may not notice the double listing errors and instead focus more on the debt-to-credit ratio and debt amounts to make their decisions.

4. Missing positive information

If you review your reports from the three major credit bureaus, you probably notice that they are not entirely identical. If you look closer, you will probably find some positive records that exist in one report but not the others.

Don’t ignore them. List them down for each report and call up each credit bureau to report the discrepancy. Positive records can give your credit score a big boost so make sure all of them are included in the three reports.

The three major credit bureaus handle a large volume of data each day and thus it is inevitable that errors will occur. However, it is your responsibility to ensure that your own credit reports contain the correct data. Review your credit reports once every six month and take action quickly when you find any errors.



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Jon Arnold asked:


Is there really bogus information in my credit report? Chances are that you are amongst the more than 85% of consumers and businesses where their credit report contains errors. What? Doesn’t anybody watch over this or police it? The simple answer is no. The attitude of the credit bureaus is that “we don’t make the news, we just report it” and they take zero responsibility for the ACCURACY of that information, they just report it as if it were fact.

How does this happen? Let’s backup a few steps first so we can understand why this is the case and then we can talk about your responsibilities. First of all, there are three major credit bureaus (Experian, Equifax, and TransUnion), and chances are very high that all three of them have a DIFFERENT credit report on you or your business. The result is that when you apply for a line of credit or a loan, the credit score reported back will be different from each credit bureau, and could be different enough to where you would be approved if they got your credit report from credit bureau “A” instead of credit bureau “B” or “C”.

Keep in mind that reporting credit is a business, and like any business, the rates charged to companies who report on their consumer and business loans is different. So say that two years ago your Visa company was reporting to Equifax, but this year they switched and are now report to Experian because Experian gives them better rates. It happens every day, this is just basic business. But the downside is that the records that Equifax was keeping on you are no longer being updated.

Now take that fact into consideration coupled with the fact that say every consumer has just 10 accounts that are either currently active or had been active at one time in the past 10 years. (And 10 is a very conservative number!) Now multiply the number of consumers (hundreds of millions) by 10 accounts each, and you end up with literally BILLIONS of records that the credit bureaus need to keep track of. It can be a database administrator’s worst nightmare.

So what you end up with is accounts that you paid off years ago still showing as having a balance due, accounts showing past due when you have not ever been late with a payment, and particularly if you have a common name, you end up with accounts showing up that you don’t even know about! All of these errors together comprise your ultimate credit score, which is almost certainly lower than it should be.

So what can you do about this? You can do plenty and you should start yesterday. Get a copy of your credit report from each of the three credit bureaus and then go over each and every piece of information there with a fine tooth comb. When (almost certainly not “if”) you find something inaccurate, it is your responsibility to dispute that item with the credit bureau. That is the ONLY way it will get corrected. The burden of proof is on the credit bureau to prove that their reported information is correct, and they do this by contacting the creditor and asking for verification, based on your dispute. If the creditor does not respond, the information must be removed from your credit report. If the creditor responds that it is accurate, then you have a beef with that creditor and need to contact them to get their report corrected.

The key point is that your credit report affects virtually every aspect of your life, and you need to ensure that the information there is accurate and reflects you in as good a light as possible. It is YOUR responsibility to get this done, nobody is watching over your shoulder to ensure your information is accurate.



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Master Yoda asked:


I know that even after it’s discharged it stays on my report for 7-10 years, but what determines if it’s the 7 the full 10, or somewhere in the middle?

Can I write to the credit bureau’s to have it removed or the court where it was filed; it was discharged in 1999.

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Kathleen Chester asked:


 

Fixing a credit report can be a slow and tedious process. It includes hours of assessment and thinking. However there are some companies that claim to quickly fix your credit report and make you financially credible. These services are usually offered by the independent credit reporting agencies and are used by mortgage lenders or brokers who try to get better loan terms for their borrowers.

 

Bad credit scores can hamper your credibility and chances of getting a credit. In such a case, you need to fix your credit report. A credit report can be fixed by removing errors. This process can help to boost a borrower’s credit score in the midst of the lending process and get a loan or a better interest rate for them than might have been possible otherwise.

 

Unlike the past when most of the lending decisions were man-made, most of the decisions today are automated, using computers and credit scores. This system has dramatically declined the opportunities to get special treatment and errors are a more serious problem these days.

 

If by the mistake of the machine, someone else’s bankruptcy is reported in your credit file, you can lose hundreds of points off your credit score and your credit application likely would be rejected. Even the slightest errors can beat enough points off your score for the lender to turn you down your application or charge a higher interest rate.

 

You can however wait for the mistake to be fixed through the normal channels which involves writing the credit bureau and waiting up to 30 days for an investigation. This process is however very long and takes too much of time. The home sales and refinancing can fall through in the time it takes to fix problems.

 

You can fix your own credit report and make the repairs. Here are some of the important steps that you can follow while fixing your own credit report.

 

· Make regular reviews of your credit report to keep an eye on any errors flowing in. You can get a copy of your credit history from each of the three major bureaus and review for errors, outdated information and accounts that aren’t yours. In case of any problems, you can consult the bureaus about how to dispute these items.

 

· You can contact your creditors if the bureaus say the creditors have confirmed the information you think is incorrect. In that case you may need to directly argue your case with the creditors. If the creditor accepts his mistake and agrees to remove the item from your credit report then make sure you get a acknowledgement letter for the same from the creditor.

 

· Keep a good record pf all thee paperwork that is generated by these disputes and investigations. You may need to present this to the credit bureau, or your loan officer, when required.



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John Cena asked:


There are a number of legal and effective credit repair techniques that have been used by individuals and credit repair companies to improve credit scores. Number one is removing negative items from credit reports is Credit Repair Software.

Personal credit report repair is a major concern for many people. It can be a long and frustrating process. There is no really quick fix. A leading credit repair company will advise you that it take time. There are techniques used by individuals and professional companies to achieve results. This article briefly covers one of the most frequently asked questions about personal credit report Software which is; how do I repair my credit.

The answer to the question; how Can I repair my credit; seems to depend on who you ask. If you ask Fair Isaac or one of the credit bureaus, they will tell you that it takes time and patience. Some “experts” say that only time can repair bad credit. A leading credit repair company says that bad credit can be deleted. In response to disbelief, they show tens of thousands of deleted listing, including bankruptcies.

When you ask; how Can I repair my credit, the most common answer is review the information on your credit report. Due to a recently enacted law, consumers can view and print copies of their credit reports at no charge by visiting www.creditrepairsoft.com. If information on your credit reports is inaccurate, obsolete, misleading or unverifiable, you can dispute the items with the credit bureau. You can write to the creditor that made the report and ask that the information be removed. You can do this on your own or you can hire a leading credit repair company to do it for you.

Often depending on the products that they sell, different companies will give you different answers to the question; how do I repair my credit. For instance, companies that offer credit cards to people with bad credit tell people that these credit cards will improve their credit. However, this may not be the case. Typical unsecured credit cards for people with bad credit charge fees that are nearly as high as the initial credit limit. According to Fair Isaac, inventors of the FICO credit scoring process, amount of “available” credit is a big determining factor in your credit score. Simply having a credit card will probably not improve your credit score. A leading credit repair company says that removing negative items from your credit reports will have the single biggest impact on your FICO credit score.

Disreputable credit repair companies may advise you to apply for an EIN, if you ask them; how do I repair my credit. This is a technique that is not recommended by a leading credit repair company. An EIN or employer identification number is a number used by the IRS to designate a business. If you do not own a small business, you should not apply for one. Some companies which advertise personal credit report repair recommend that a person apply for an EIN and use that number instead of their social security number when applying for credit. It is illegal to provide false information on a credit application.

So, after you look at the many answers to; how Can I repair my credit, you will probably see that there are many ways. Some work. Some do not. Some are illegal. You can choose to do it yourself or you can hire a leading credit repair company to do it for you. If you wait for bad credit to be removed from your personal credit report, then it will take a long time and you will not improve your credit scores. Even people with the worst credit can obtain a secured credit card, have a friend or family member with good credit list them as a co-applicant and work to achieve personal credit report repair. If you do nothing, your scores will not improve. There are companies that sell software programs, credit repair kits, books, CDs and DVDs on the subject of credit repair. You are not the only person asking; how do I repair my credit. There is also a lot of free information. It will take time and patience if you try to do it on your own, but it can be done. You may see quicker results if you hire a leading credit repair company and for certain problems a credit repair software is best.

Having good credit is important to everyone. People that have good credit may say that there are no effective credit repair techniques. People who have once had bad credit and now have good credit, because of the credit repair techniques used by the credit repair law firms would disagree. Credit repair is possible and it can be effective. Credit repair techniques that are legal and effective do exist.



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Ronnica Rothe asked:


Your credit report is used by lenders to determine whether you are a fit candidate for a loan. If you want to buy a house or car in the future, now is the time to start working on cleaning up your credit report. Obtain a free copy of your credit report and look it over to see what the creditors use to determine your eligibility for loans.

There are probably both positive and negative items on your credit report. The positive items, such as staying current on your accounts, being employed, and having checking and saving accounts, will stay on your credit report indefinitely. You want these items on your credit report because they help to counteract whatever negative items you have. There is no need to act to have them removed. However, if you see that you are missing accounts that you have good history with, even if it is simply a small store card, you should contact the creditor to get them added to your report.

If you have made any financial mistakes in the past, they are probably present on your credit report. Negative items such as credit card defaults, repossessions, foreclosures, and chapter 13 bankruptcies will remain on your credit report for seven years. Chapter 7 bankruptcies will stay on your report for ten years, while any unpaid tax liens will stay on your credit report for fifteen years. These items remain because creditors want to see what risks they may take on when lending money to you.

If negative items have remained on your credit report beyond the limits specified above or if they are inaccurate, it is time to dispute them with the credit bureau. You will need to do so with each of the credit bureaus individually if the item existed on all three credit reports. Disputing items has been made simple and can be done easily when pulling your free credit report. You should expect to hear back from the credit bureau in about a month. When you receive the documentation on what corrections were made, check to make sure that the problem has been completely taken care of. If the report is still not quite accurate, you can do a second dispute by personal letter. Explain the problem fully, providing documentation to back up your case. Make sure to keep copies of all correspondence with the credit bureaus.

If you have defaulted on a credit card or other loan, you may want to talk to the creditor to negotiate a deal to get your account up to current. However, if you do not plan on paying the debt, do not contact the creditor because it may restart the clock for having the item dropped from your credit report.

There are several other steps you can take to build your credit. Open a checking or savings account with a bank or credit union. If you have enough self-discipline not to rack up debt, get a credit card and use it sparingly, always paying off your balance in full each month. Using credit responsibly can go a long way to proving that you are capable of handling larger purchases.

It is a good idea to check your credit report on a yearly basis to make sure that everything is doing well. Take advantage of the free yearly credit reports from each of the three major credit reporting bureaus. If you have further questions on how to build or clean up credit, talk to a credit counselor.



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Cathy Taylor asked:


The Fair Credit Reporting Act (FCRA) and the recent update to this law called the Fair and Accurate Credit Transactions Act (FACTA) protect consumers against inaccurate information being reported by credit bureaus and the privacy of that information. What does this mean to you?

When you make purchases on a credit card, make payments to your accounts, open new bank or credit accounts, borrow money, buy a house or a car, and even fund your education, your financial information is reported by creditors and lenders to a credit bureau.

The three major credit agencies that serve as clearinghouses for this information are Equifax, Experian, and TransUnion. Each lender and credit company may report your information to a different agency, depending on the location of the business and the service agreement between the companies, so each credit agency might print very different information on your credit report.

According to the FCRA, you have the right to know what is on your credit report if you ask for it. You can contact each of the credit bureaus separately and pay for a report at any time. However, if a company refuses you credit, employment, or insurance, you may request a free copy of your report within 60 days. Simply ask the company that denied you credit for the name and contact information of the credit bureau they use. In addition, all three agencies must provide a free copy of your report in cases where you have been the victim of fraud or identity theft.

Due to the recent changes by the FACTA, you will be entitled to one free copy of your report from each agency per calendar year, effective in all states by the end of 2005. (You can order it at www.annualcreditreport.com ) For example, if you order a report from Equifax in June of 2005, you may request a free report in June 2006. The credit bureaus must also supply you with a list of everyone who has requested your report in the last year.

The FCRA requires that all credit bureaus and all information providers, such as lenders, credit card companies, or landlords, correct any inaccuracies that they are aware of in your report. If you find inaccurate or incomplete information in your credit report, notify all three agencies by phone and follow up in writing by using certified mail, return receipt requested, so you will have documentation of all requests and responses by the bureaus.

Also send a request for the correction in writing to the information provider. If the provider finds that the inaccuracy is substantiated, they must notify all national credit bureaus of the correction. If the dispute results in a change, the credit bureau is required to provide you with written results and a free copy of your adjusted report.

Privacy is a serious issue when it comes to your personal information, and the FCRA includes provisions to guard the privacy of your credit report. Your employer or a potential employer may only gain access to your credit history with your consent. An employer, insurer, or creditor cannot access a report that contains your medical information without your approval. Only people with a legitimate business need, such as an application for credit or a rental agreement, are allowed under the FCRA to obtain a copy of your credit report.

The FACTA has enabled consumers to place a fraud alert on their credit report with one phone call to the credit agency. In cases where you suspect that you are the victim of identity theft, or have simply lost your identifying information, you can stop potential thieves from accessing your credit.

You can also get records from businesses where a thief has used your personal information without your consent, provided you have a copy of the police report detailing your identity theft. These records are invaluable in the process of clearing your name after such a crime.

Also new with FACTA is the requirement that mortgage lenders and credit bureaus provide consumers with their credit scores upon request. In addition, if an information provider is sending negative information to a national credit bureau for inclusion on your credit report, they must now send you written notification prior to doing so.

These laws, the FCRA and its newer counterpart the FACTA, have made significant strides toward protecting the consumer from potentially damaging errors and breaches of privacy.

More information can be found at http://www.apscreen.com



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