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Welcome to Credit Report Tips
Hi, I'm Jennifer Mathes, Ph.D., one of the hundreds of writers here at LifeTips.com. Enjoy these 200 Credit Report Tips! If you’re a business, why not hire the expert writers at LifeTips? And if you’re a writer, apply for freelance writing gigs.
Disputing Incorrect Information on Credit Reports
Reading credit reports can be confusing. Before you assume there is an error, make sure you are interpreting the information correctly. The good news is that you can effectively dispute errors. Keep records of all your telephone conversations and correspondence. Get the name, title, and telephone/extension number of the person with whom you are speaking. All three of the large credit bureaus offer tools to register free online credit report disputes. The Federal Trade Commission (FTC) also offers a publication called “How to Dispute Credit Report Errors” for free on its Web site.
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Credit Scores
Credit.com Tip: To determine if you qualify for credit, a financial institution may review your credit scores.These scores are available through each of the three big credit reporting agencies – Experian, Equifax, and TransUnion.Each one uses a different formula to determine your credit score.In addition, since they operate independently of each other, the information available through each one will vary.A financial institution will often pull all three reports to make sure they have your complete credit history.
If you want to get an estimate of your credit score, visit a site like Credit.com and use their Credit Score Compass. It will take through a series of questions which provides insight into your credit score ranking.
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Disputing Credit Report Errors
Consumers should check online credit reports on file with Experian, Equifax, and TransUnion regularly to ensure that the information the reports contain is accurate. The Fair and Accurate Credit Transactions Act, or FACTA as it's called, makes it easier to dispute incorrect information in your credit report. Consumers can deal directly with the credit bureaus to dispute errors. Each of the big three credit bureaus offers online, telephone, and mail channels through which to pursue disputes. You can visit the company Web sites for more information. Regardless of whether you choose to deal with the credit bureau or directly with the business, you should dispute incorrect information in writing, and you should keep copies of everything. And remember, fixing an error at one credit bureau does not mean it will be corrected at the others. If the incorrect information is included in more than one bureau's database, you will need to pursue your dispute with each bureau individually. For more information on how to dispute inaccuracies in your credit report, visit www.privacyrights.org. There are links to government publications and other resources that will help you iron out any problems.
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What Information Is On Your Credit Report?
Credit.com Tip: The information on credit reports includes more than just the expected credit information.To help prevent identify theft and fraud, other items are also on your credit report, such as your recent employment history and addresses.If things don’t match with what you claim on an application, the creditor may question you on those things.The credit items found on a credit report include a listing of all creditors with whom you have an open line of credit, how much credit you have outstanding, your monthly payments and your payment history.Negative items, like collections and liens, may also be identified on your credit report.
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Checking Your Own Credit Report
Not only can you check your own credit reports, you should check them regularly. You can order directly through Equifax, Experian, TransUnion, or any number of online credit report companies. Checking your own credit reports will not negatively impact your credit score. Keep in mind, though, that if you order directly, you will be charged a fee. If you'd rather receive a free credit report, you can order an annual credit report from each of the three big credit bureaus at www.annualcreditreport.com. When you check your credit reports, make sure it is error free. Sometimes information from other individuals can be inserted into the wrong record.
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Free Credit Score
Credit.com Tip: Not only is it important to review your credit history, but it is also a good idea to know your credit score.There are a number of sites that advertise that they can give you a free credit score, but be careful where you obtain this information from.You don’t just want to give anyone access to your personal information.Start by looking for this from one of the three major credit reporting agencies – TransUnion, Experian or Equifax. You may find that they make this information available to you on a trial basis.Either way, it is a good idea to find out what your credit score is and what that score means to you.
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About Credit Scores
A credit score is a numeric value that most commonly ranges from 300 to 850 and that is calculated based on a number of different factors. The single-most important factor in determining your credit score is your past repayment history. Credit reporting data is maintained by the credit bureaus on more than 170 million Americans. Credit scores are calculated directly based off current credit data, then subsequently pulled by lenders. A score does not exist until they are ordered by a lender or consumer. Since there can be errors in the information contained in a credit report and the corresponding credit score, personal finance and identity theft experts recommend that you check your credit scores all three credit bureaus at least three to six times a year. Federal law entitles consumers to a free credit report and score from Equifax, Experian, and TransUnion once every 12 months.
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Getting An Auto Loan
Credit.com Tip: When you want to buy a new car, you may need to get a loan to help you afford the one that you want.Before you go to a lender to apply for an auto loan, find out if you will be qualified for one by ordering an instant online credit report at a website like Credit.com.First, check to make sure that all information on the credit report is correct.If you find any errors, get them corrected immediately.Corrections to your credit report can take months to complete so don’t delay in contacting the creditor and the credit bureaus to get things changed. Next, figure your debt-to-income ratio.Too much debt can keep you from getting a car loan.When you feel confident that your credit is in good shape, talk to a financial institution to see if they will approve you for an auto loan.
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About Credit Reports
A credit report is a compilation of information that serves as a persistent record of how you use, abuse and manage your credit responsibilities. It includes basic information about you, such as your name, address, telephone number, Social Security number, date of birth, and employment history. It also includes information on your credit payment history as well as public information such as tax liens, court judgments, and bankruptcies, if any. Credit reports are used by potential businesses and lenders to help determine your creditworthiness. If your credit report is generally positive, you will most likely qualify for better terms on any credit for which you apply. The federal government recently enacted legislation allowing consumers access to a free credit check once every 12 months from each of the three main credit bureaus. For more information, or to get information on an free instant credit report, visit www.annualcreditreport.com.
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Credit Cards and Identity Theft
Credit card companies recognize the threat that identity theft poses to consumers and do take steps to protect their customers. For example, many credit card companies monitor usage patterns by consumers. If unusual charges appear on the account, the company may temporarily freeze the account and contact the cardholder to see if the charges are legitimate. Examples of unusual charges include charges at vendors outside the geographic region in which you normally use the card or a big-ticket purchase when you normally use the card for smaller purchases. Most companies also offer other credit card fraud protection services, such as issuing virtual numbers for online purchases. Your credit card company's Web site should include a full description of the identity theft protection services it offers.
