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Credit Reports And Repairs
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Published: August 15, 2007
Credit reports are normally only mentioned when there is something wrong, whether it be a lender refusing to let a person borrow or something even worse, such as identity theft. But even when everything is going well, it is worth the time to request a free credit report every 12 months.
This makes it easy to correct any errors in a person's credit report and discover fraud before either can adversely affect one's life.
There are three companies who each compile separate credit reports for each individual: Equifax, Experian, and Trans Union. It is federal law that someone may file for a free copy of each company's credit report once every 12 months. While many people file for all three at once to catch any discrepancies between them, it can also be beneficial to order them separately, so as to get a credit report for free every 4 months. In addition to free annual credit reports, it is also possible to get a free credit report within 60 days of being denied credit, if one is unemployed or if a person has reason to believe that there has been fraud.
Though they are called credit reports, there are actually a few things a person can do to alter the information found within. There are sometimes simple mistakes on a credit history, and a person may contact any of the three credit bureaus explaining the error and requesting an investigation. Requesting investigations of faulty information is one of the only ways to actually accomplish legally any sort of credit repair. Additionally, comments may be submitted concerning the reason for lack of payment in a credit report, citing an illness, injury or other such explanation, which may then assist a person in obtaining credit from sources which would otherwise have seen late payment as negligence.
Besides these ways of adding or correcting information to a credit report, all of which can be easily done by an individual, there are no ways of repairing a credit report. In fact, the Federal Trade Commission warns against the use of credit repair companies, noting that many such companies are fraudulent and would at most pay high fees for accomplishing something that could just as easily be done by the individual paying. Negative information on a credit report stays for seven years, and despite what a company claims, if it is accurate information, there is no way to remove it except through time. Such companies' credit repair would be either illegal or simply fraudulent, and for the vast majority of cases, credit repair companies should simply be avoided.
In addition to fraudulent credit repair companies, there are a number of websites that are not authorized to give out an annual credit report, and instead attempt to steal personal information. The only site authorized to give out an annual credit report is the eponymous annualcreditreport.com.
Obtaining annual credit reports and checking over them for erroneous information not only helps to catch identity theft early, but it also works to improve credit rating. There are many factors which are taken into consideration to give a numerical score to a person's overall credit history, including payment records, control of debt, re-aging, and signs of stability. By correcting errors and investigating false negative information on a credit report, a person can improve their credit rating and even make it more likely to get lower interest rates or better deals with their credit.
Sources:
"Credit history" Wikipedia. 18 July 2007. 24 July 2007 http://en.wikipedia.org/wiki/Credit_history
"Credit Repair: Self Help May be Best." Federal Trade Commission. December 2005. 24 July 2007 http://www.ftc.gov/bcp/conline/pubs/credit/repair. shtml
Related Articles
There are three companies who each compile separate credit reports for each individual: Equifax, Experian, and Trans Union. It is federal law that someone may file for a free copy of each company's credit report once every 12 months. While many people file for all three at once to catch any discrepancies between them, it can also be beneficial to order them separately, so as to get a credit report for free every 4 months. In addition to free annual credit reports, it is also possible to get a free credit report within 60 days of being denied credit, if one is unemployed or if a person has reason to believe that there has been fraud.
Though they are called credit reports, there are actually a few things a person can do to alter the information found within. There are sometimes simple mistakes on a credit history, and a person may contact any of the three credit bureaus explaining the error and requesting an investigation. Requesting investigations of faulty information is one of the only ways to actually accomplish legally any sort of credit repair. Additionally, comments may be submitted concerning the reason for lack of payment in a credit report, citing an illness, injury or other such explanation, which may then assist a person in obtaining credit from sources which would otherwise have seen late payment as negligence.
Besides these ways of adding or correcting information to a credit report, all of which can be easily done by an individual, there are no ways of repairing a credit report. In fact, the Federal Trade Commission warns against the use of credit repair companies, noting that many such companies are fraudulent and would at most pay high fees for accomplishing something that could just as easily be done by the individual paying. Negative information on a credit report stays for seven years, and despite what a company claims, if it is accurate information, there is no way to remove it except through time. Such companies' credit repair would be either illegal or simply fraudulent, and for the vast majority of cases, credit repair companies should simply be avoided.
In addition to fraudulent credit repair companies, there are a number of websites that are not authorized to give out an annual credit report, and instead attempt to steal personal information. The only site authorized to give out an annual credit report is the eponymous annualcreditreport.com.
Obtaining annual credit reports and checking over them for erroneous information not only helps to catch identity theft early, but it also works to improve credit rating. There are many factors which are taken into consideration to give a numerical score to a person's overall credit history, including payment records, control of debt, re-aging, and signs of stability. By correcting errors and investigating false negative information on a credit report, a person can improve their credit rating and even make it more likely to get lower interest rates or better deals with their credit.
Sources:
"Credit history" Wikipedia. 18 July 2007. 24 July 2007 http://en.wikipedia.org/wiki/Credit_history
"Credit Repair: Self Help May be Best." Federal Trade Commission. December 2005. 24 July 2007 http://www.ftc.gov/bcp/conline/pubs/credit/repair. shtml
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