Credit Basics
Credit Report
If you have not checked a copy of your
credit report lately, you should. You will not know how accurate your report is
unless you check. It is not good enough to obtain a copy of just one of your credit
reports. To really monitor your credit history you must obtain a copy from all three
major credit reporting bureaus:
Equifax:- 1-800-685-1111
Experian (formerly TRW): 1-888-397-3742
Trans Union: 1-800-916-8800
What is a credit report?
It is a written report consisting of
the following facts regarding your personal credit worthiness and debt repayment
history.
A Personal Report includes your name, addresses,
spouse's name, date of birth, Social Security Number, telephone number, place of
employment, mothers maiden name, etc.
Credit Inquiries appear every time a credit issuer
runs a credit report on a person and a record of the file inquiry is made. This
inquiry will remain on file, in most states, for one or two years. Creditors value
this information because it reveals recent credit activity. Information in public
records and collection accounts are also registered to these agencies. Public records
include courthouse records, bankruptcies, judgements, lawsuits, etc.
A Credit History includes the name, identification
number, date account was opened, credit limits, current balance, monthly payment
amounts, credit/debt repayment history, and payment frequency for the last 12-24
months for each credit guarantor. Records are dated with each request or entry.
Other information includes, but is not limited to, consumer disputes, criminal convictions,
individual liability or joint liability of accounts, secured accounts, and charge-offs
(Drop Box: When a creditor has reported an unpaid balance as a loss).
Consumer Statements are statements written by the
consumer, not exceeding a 100 words, regarding any account(s). These statements
let you accurately and completely explain any extenuating circumstances.
When is a credit file created?
Your credit record is established when you apply for a loan or a credit card. The party who extends the credit must make a report to the credit reporting service on your debt repayments.
Therefore the automatic stay gives you a little
extra time to devise a plan to deal with your debts without having to worry that your creditors
are going to create more problems for you.
Who can legally look at my credit
report?
Banks and merchants, etc., may not access
an individual's credit record unless authorized. This authorization is standard
procedure when you sign credit and loan applications, life insurance applications,
employment applications, security clearance requests, etc. Read the fine print on
the applications for more details.
How often should I look at my
credit report?
If you are actively using credit and
have monthly or bi-monthly charge activity, installment loan(s), vehicle lease,
etc., you should review your credit file every 12 to 18 months.
Since each of the major credit bureaus operates
independently they can contain different, and often conflicting, information. New
changes in the laws concerning credit reporting may help to eliminate differences
between credit bureaus.
