Credit Information And How It Affects You
Filed under Credit
Sometimes, you may look at your free credit scores and credit information only to find it rife with errors. First, get your free credit scores online from Equifax, Experian and TransUnion at www.AnnualCreditReport.com, then print them out and highlight any negative information. Circle disputed records. Check the expiration dates of the records. Bankruptcy filing records should have expired 10 years after the first filing date, charge-offs should be gone within 7 years, collection records should expire within 7 years and 180 days after the last late payment, closed accounts should be removed in 7 years, foreclosure records last for 7 years, inquiries will remain on your credit report for 1-2 years but will not hurt your overall score, judgments/court decisions will remain for 7 years after the filing date, late payments of more than 30 days remain for 7 years, repossession records persist for 7 years and tax liens can remain indefinitely, if unpaid, or else 7 years from the paid date.
To file a dispute about your credit information, you can write a letter to all three major credit bureaus, which are Equifax, Experian and TransUnion. On the letter, include the date, your address and name, phone number and social security number. Just write “The following data is incorrect and should be updated,” then list each inaccuracy, explaining why it’s wrong and what it should be updated with. Attach a marked copy of your credit score report and include all previous communication, account records or statements that will help prove your version of events. By letter is the best way to dispute with Equifax and TransUnion, although Experian only allows online disputes. The credit bureaus then have 30 days to check and repair your credit info. Once they have done, they will send you a letter including what was or was not updated. If you’re not satisfied with the contents of the letter, then you can try once more with different documentation or get in touch with the creditor to try and resolve.
Often, checking your credit information is the best way of finding an identity theft if you are not using one of the identity theft products such as Life Lock who continually watch your credit information for you and watch for any weird activity. If you find strange in your credit information that you have absolutely no explanation for, a payday loan unpaid, a new video camera on credit etc. contact the 3 credit agencies as soon as possible and police for advice. Without any type of protection, taking a look at your credit information is perhaps the only way to avoid identity theft running wild. It cannot prevent it but at least it stops from getting any worse.
There’s no tool greater than credit information. If you’ve suffered poor credit scores in the past, then you can still rebound from a foreclosure or collection account by paying regular bills in full and on-time. The best way to stay ahead is to bring in more income, see where your spending problems lie and save sufficiently. “What works” in this department varies for each person. Some need to put the money out of sight, out of mind, while others can manage it in their checking account. Whether it was a one-time “oops” or a pattern of “I didn’t know,” seeking credit info is the first step toward financial recovery.
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