Consumer Credit Reports – equifax experian score

Loren McCray asked:




There is probably at least one thing on everyone’s credit reports that they wish conveyed their version of the incident.

The Fair Credit Reporting Act (FCRA) allows everyone to submit up to one-hundred words explaining their version of the incident. People that reside in Maine can write as many as two-hundred words. The problem with consumer statements is that they are a complete waste of time.

Submitting a consumer statement on your credit report is about as useful as a swimming pool at the North Pole. Consumer statements are total waste of time because most banks do not even look at credit reports anymore. Most banks do not even pull the entire credit report.

Banks only pull specific portions of credit reports. The “consumer statement” segment is almost NEVER pulled. The reason is that Fair Isaac streamlined the entire loan process so banks won’t have to invest time reviewing credit reports.

For example, think about a large bank like Bank One, Washington Mutual or Wachovia. These banks receive scores of applications every single day. You’d need an army of people to review each credit report by hand.

Now imagine how uneconomical it would be for the bank to review thousands of consumer statements and also have to figure out how to interpret them as part of the overall credit application.

Banks simply look our FICO credit scores, to make a credit decision. FICO scoring is the reason we can be approved for credit on your favorite website, over the telephone, or even at a department store in mere seconds. It takes five seconds for them to get your FICO credit scores and another five seconds to offer you store credit. Now that’s fast!

Remember that every bank is different when it comes to credit scoring. Many banks use only your FICO credit scores to make a credit decision. Some banks use your FICO credit scores as one piece of their credit decision.

Consumer statements may even hurt you

Consumer statement can even corroborate negative information on a person’s credit reports. Here are some actual real-life examples…

“…The reason I was late paying the bill was due to the fact that I…”
“…I normally pay my bills on time. But last month I didn’t have the money, so I…”
“…the phone company raised my monthly fees and I shouldn’t have to pay it…”
“…I went to Hawaii and I forgot to pay Citibank so…”

These statements have essentially done the credit reporting agencies’ jobs for them. They’ve just confirmed that the negative information is true.

How to Remove an Existing Consumer Statement

It is as easy as asking for it to be removed. You submitted it, you have the right to remove it. You can write each credit reporting agency a simple letter. Here are their mailing addresses:

Equifax Information Services LLC
PO Box 740241
Atlanta, GA 30374

TransUnion
PO Box 2000
Chester, PA 19022

Experian
PO Box 2104
Allen, TX 75013

Remember the Following if You Have a Dispute with a Bank
1. No matter who is right, if there is a possibility that the negative information will be end up on your credit reports-you need to **** it up and pay up before it gets reported. This is critical because if it gets on your credit reports, it will stay there for the next seven years. Pay whatever they say you owe. Then hire an attorney to sue them, or take it to small claims court.

2. Using a consumer statement to tell the credit world your side of the story is a bad move. You don’t want to verify negative information and do the credit reporting agencies’ jobs for them.

3. Consumer statements don’t help your scores. You can be as right as it gets and it won’t matter. A consumer statement has no positive impact on your FICO credit scores. It simply doesn’t.

Focus on what helps your scores. Everything else is just a waste of your time.

Stacy

Dale Siegel asked:




I have been in the real estate industry since the early 80′s. I was a bank closing attorney, and now a full time mortgage broker. I remember the days when we ran a three-bureau credit report for clients and did an analysis of late payments and credit inquiries. We used to be able to obtain a written explanation for poor credit from the borrower and beg the lender to accept it. Illness, loss of employment, divorce and death were always good excuses for missing a car payment. My clients wrote lengthy, sorrowful explanations for their deadbeat credit. The people reviewing the file took out the tissue box and approved the loan anyway.

Thanks to Fair Isaac and Company, those explanations are no longer required. Most lenders will not even accept a letter, no matter how tearful it will make the underwriter. We now use a scoring process referred to as a FICO score. This is a mathematical formula calculating your credit risk based on five main factors and comparing your credit score to that of others [credit] in the system. There are three major reporting agencies, each basing their score on a slightly different formula. Lenders will look at the middle score of all three (as opposed to averaging).

When shopping for a home, the first question a realtor will ask is “Do you have a pre-approval letter?” When going to get a pre-approval from a lender, the first question a loan officer will ask you is “How is your credit?” Here you will learn how to obtain your credit report, get your credit score and improve it. If you are considering buying a house in the next year, I suggest you begin working on it now.

A credit score can range from 450 to 850- 850 being the best. The acceptable cutoff for Fannie Mae is 620, although they have accepted much lower scores with compensating factors. A compensating factor would be considerable amount of equity in the property, low income to expense ratios, or a lot liquid assets. There are alternative lenders and loan programs for people with bad credit and no compensating factors. You may get a higher interest rate or have to put down more money.

The main items included in the FICO formula are:

Types of Credit: Mortgages, lines of credit, student loans, car loans, major credit cards and retail cards. They (the computer) will look at how many types of credit and how many of each do you have. Although it is not required, a greater mix shows a mature and responsible borrower. You should have at least three active accounts and one major credit card. A score will not register unless there is one piece of credit that has been used for a minimum of six months. Most banks prefer four active trade lines with a 24 month history. Mortgage history is given the most weight. Retail store and gas cards are given the least. Make sure that you use your cards, but do not forget to pay them on time. If you have no credit, start with a secured credit card, store card and move up to Visa/MasterCard.

Inquiries: Inquires and obtaining new credit will always affect your FICO score. An inquiry is when a potential creditor does a credit check to see if you qualify to obtain credit from them (ie: you are shopping for a car at multiple dealers whom all run a credit check on you to see if you qualify for a loan.) Every time you apply for credit, an inquiry will show up on your credit report. If it does not result in a new trade line, it will negatively affect your credit. If it does result in new credit, the trade line will be new and will have a potentially negative effect until you have a proven history with the account. An inquiry stays on your credit report for 24 months. It is your responsibility to request the credit agency (each of the three individually) to remove them after 24 months. So, do not have a company run your credit unless, you have decided to do business with them. Do not obtain free credit reports over the internet. Do not get a new store credit card, simply to obtain the discount off of your first purchase.

Length of credit history: The longer you have credit history, the better your scores. Having a few credit items for a period of 12 months is better than having many credit items for six months. A rapid account buildup looks too new and risky and will affect your scores negatively.

Amounts owed and amounts available: Amount owed is the total of your balances on your credit cards when the report is run. Amount available would be the high credit available to you on all cards open, even if you do not use it. Thus, keep as few cards open as possible and keep low balances if you can. The fact that everybody approves you for a card and sends it to you is not good. If you have ten major credit cards with available credit in the amount of $10,000 each and only owe $2,500 on three cards, your scores will be based on the fact that you can owe $100,000 at any given time. Good sense would be to keep two major credit cards open and close out the rest by consumer request. All gas and retail stores accept Visa and MasterCard, so think twice before you go for the Pottery Barn credit card to get the 10% discount on those candlestick holders. If you have not used a card in two years, chances are you do not need it.

Payment history: This is the most important scoring factor. It shows your responsibility in making past payments and indicates how you will make the inquiring creditor’s payments. Open judgments, profit and loss write-offs, collection accounts, foreclosures and bankruptcies are part of your credit history. Each late payment type will affect your score differently. For instance, 30-day late payments on three major accounts in the last two months will affect your score more negatively than a bankruptcy discharge three years ago. Remember, the last 12 to 24 months are most important, and this would be the most crucial time to be good if you are planning on purchasing a home.

Tips: Obtain a free copy of your credit report at least once a year and review it. (Contacting the three main bureaus directly, for this does not count as inquiry.)

Contact each bureau concerning errors or accounts that have been paid or closed. Send a cover letter and any supporting documents as proof. Ask to have your report updated within the required 30-day period and ask for revised report for your review.

Make a list of any collection, judgment and profit and loss write-offs. Contact the creditors directly and ask them to settle on the account. When they accept, ask them to send you a letter accepting your offer before you send them your check. Send this letter to the bureaus with proof of payment, asking them to update your account and send a revised report.

Close any unnecessary accounts by writing a letter directly to the creditor asking that your account be closed, then, report to the bureaus that it has been closed by consumer request.

Ask the bureaus to remove any inquiries from your report that are older than two years.

If you declare bankruptcy, so the following immediately after the bankruptcy has been approved: send a discharge letter to the bureaus with the attached creditor schedules asking them to show that these items have been included in the bankruptcy. This will show that they are no longer owed and will not be considered a debt. Otherwise they will probably show as open judgments or profit and loss write-offs. These would be huge negatives.

Ask the bureaus to remove any foreclosure or bankruptcy from your record after 10 years. You can actually start at seven years. Sometimes this works and it also removes anything that was included in the bankruptcy. Remove judgments and collection accounts after seven years.

Make sure that student loans show as consolidates, deferred or paid off. This always affects your score.

If you do not have enough credit or have none, start by establishing an account with Capital One or another secured lender.

If there has been irreparable damage to your credit, you are entitled to place a 100-word narrative on the report itself to explain. (i.e. stolen credit card, same name fraudulent use of your social security number.) The creditors will be alerted to these comments and will review them.

Corey

Chuck B asked:


Acct#
Loan Type: Charge Account
Remark: Account closed by Consumer
>Maximum delinquency of 120+ days in 12/2006<
Balance: $0
Date Updated: 04/2007
High Balance: $5,057
Credit Limit: $5,500
Past Due: $0
Pay Status: > 120 Days Past Due<
Account Type: Revolving Account
Responsibility: Individual Account
Date Opened: 12/1997
Date Closed: 04/2007
Date Paid: 12/2005

Roberto

Mike Clover asked:




The FTC claims that Credit Report Repair may be better for you if you do it yourself. You have seen advertisements on TV, local newspapers, internet. All of these credit report repair companies claim the following:

* “Credit Problem? No Problem!”

* ” We can get rid of bad credit problems – 100% guaranteed”

* “We can remove bankruptcies, judgments, bad loans and tax liens from your credit file forever

The FTC says “Don’t believe these statements. The only thing that will fix your credit is time, conscious effort, and a personal debt repayment plan will improve your credit report.

This article will explain how you can improve your creditworthiness and gives legitimate resources for low or no cost help.

The Scam

All over the US companies appeal to families and individuals that have bad credit problems. They promise for a fee, to clean up your credit report so you can get a car loan, a home mortgage, a job or even a insurance. The fact is, they cannot deliver. After you pay them hundred of dollars or even thousands of dollars in fees, these companies do absolutely nothing to improve your credit report. They typically vanish with your money says the FTC.

Warning Signs

If you feel credit repair with one of these companies is your choice, look out for the following.

* Companies that want you to pay before services are rendered

* Companies that don’t tell you your legal rights and what you cannot do yourself for free

* Companies that recommend that you don’t contact the credit reporting companies

* Companies that recommend you create a new identity by way of Identification Number.

* Companies that advise you to dispute all information in your credit report

Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed services they claim they can provide. The FTC says to get what they claim they can do in written, and once it is done then pay them.

The FACTS

No one can legally remove accurate information from you credit report. If you owe the debt, it will be on there for 7 years from original collection date. The law allows you the consumer to dispute inaccurate information on your report for FREE. There is no cost to you for doing this. Everything a credit repair company does for a fee, you can do it yourself for FREE. This is all in accordance to the Fair Credit Reporting Act (FCRA)

v You are entitled to Free Credit Report if you are denied for the following

1. Credit Application

2. Insurance

3. Employment

You are to ask for this report within 60 days of receiving this notification. You are also entitled to the free report if you are unemployed and are about to apply for job, if you are on welfare, or if your report is inaccurate because of fraud including identity theft.

v All 3 Credit Bureaus – Equifax, Trans Union and Experian are required to provide you once a year with a Free Credit Report. In order to get this report you must go to annualcreditreport.com.
v You are allowed to dispute items that are not yours for free. Under the FCRA any company that is reporting information about you that is inaccurate, this information must be updated correctly. If you owe the debt it will not be removed.

Step One

The consumer credit reporting company that is reporting information incorrectly about you must be informed in writing what information is inaccurate. You are to include a copy of documents backing your claim. You are to clearly identify in the claim the following

1. Your full name

2. Address

3. The item in the report that you are disputing

4. The request that it should be removed or corrected

5. Enclose a copy of the report and circle the item in question.

Your credit report dispute letter may look something like this:

Date

You’re Name

Mailing Address

City, State, Zip

Re: Disputing Inaccuracies on My Credit Report

Name of Credit Reporting Bureau

Mailing Address

City, State, Zip

Dear Sir or Madam:

I am writing for two (2) reasons:

1. To dispute certain information in my credit file; and

2. To have you investigate/re-investigate and remove inaccurate information from
my Credit Report and prevent its re-insertion. The item(s) I dispute are encircled
on the attached copy of the credit report and further identified by (identify the
items by name of source, such as creditor or tax court, etc. and identify type of
item, such as credit account, judgment, etc.)This item is (inaccurate or
incomplete) because (describe what is inaccurate or incomplete and why). I am
requesting that the item be deleted (or whatever specific change you are
requesting) to correct the information.(If you are enclosing documents such as
copies of cancelled checks, payment records, court documents, send copies
only, you should always retain the originals — and use the following sentence.)

Enclosed are copies of the following documents supporting my position:

1.

2.

3.

Please reinvestigate this (these) matter(s) and (delete or correct) the disputed
items within the time frame required by the Fair Credit Reporting Act (FCRA) and
inform me in writing of the outcome. Thank you for your time and consideration in
this matter.

Sincerely,

________________________

(Signature)

Your name

Once the investigation is complete, whether they removed the item or not, the creditor must give you something in writing. If the information was deemed incorrect, then they must remove it, and not put it back on your report.

Step Two

Advise the creditor or other information provider, in writing, that you dispute an item. Be sure to include copies only, not your original supporting your claim. The creditors usually provide an address for disputes. If the creditor reports the items to the 3 credit bureaus, they must include the dispute during the reporting time. If you are correct, the creditor must remove the item from the Bureaus it’s reporting too.

For information on “How to Dispute Credit Report Errors, go to ftc.gov/credit.

The reporting of correct information

When negative information is being reported about you, and it’s accurate the only way it will go away is with time. A consumer credit reporting company can report negative information about you for 7 years and bankruptcies for 10 years. Judgments can be reported for 7 years or until the statue of limitations run out.

Credit Repair Organization Act

By law credit repair companies must give you a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign any contract. They must also give you a written contract that specifies your rights and obligations. Read these documents carefully before you sign anything.
Example of what a credit report company cannot do:

v Charge you for anything until services have been completed

v Make false claims about there services

v Provide any services until they have your signature on a written contract and have completed a 3 day waiting period. During this time you may cancel the contract without any fees occurred.

v Payment terms for services rendered, along with total cost

v Detailed description of services you are paying for

v How long it will take to achieve results

v Any guarantees they offer

v Company address and name

Check your Credit Report at least 4 to 5 times a year.

Even if you don’t have poor credit, you need to know what’s on your credit report. Here are some good reasons per the FTC.

v Because the information it contains may affect whether you get a loan and the payment terms for that loan

v Make sure the information is accurate, complete, and up to date before you apply for a mortgage, credit card, car, insurance or even a job.

v To help guard against identity theft

Hopefully this has shed some light on credit repair, and the importance of have a recent copy of your free credit report.

Derek

JoeyB asked:


I have heard of differences between credit scores depending on the formula used. But what should I do when the difference from one bureau is 50-60 points less than the other two bureaus?

Long and short of it: I was trying to refinance my car today, as my credit score has greatly improved since I originally purchased the car. I monitor my Expiring credit score and pull a report monthly. Today I was working with my lender through e-mail, and when my lender ran a credit check, it came up as the upper 650s! I was surprised so I then pulled up Trans Union’s report which is sitting at the 710-719 range, the same range as my Expiring report.

I then decided to pull Equifax, and looking over the Equifax report, I can’t come up with any inaccuracies, but I am questioning the validity of the score since it is so much lower than the rest. I passed on all three reports to my credit union to show them the difference and they agree it is very odd.

What should I do to remedy the situation? As a consumer, is there anything I can do?

It is very frustrating to be working so hard being responsible with credit and monitoring my credit so that I build myself a successful financial future and to see such a large discrepancy!

Antonio

TheWarOnDebt asked:

Discover the four main things that can hurt or help your credit score in this quick and very informative video. Don’t Go To Court Alone! Hire an affordable Attorney in your state. For more info call 866-576-4996 – or go to www.prepaidlegal.com/hub/jeromeford

Carl

Crazyjester9 asked:


I’ve been noticing this more and more lately, as people are claiming that you cannot dispute legitimate debts with the credit bureaus as this is considered fraud. Yes, they are claiming it is a criminal offense!

Now time after time, myself and others have posted information that proves this is false. The Fair Credit Reporting Act gives consumers the explicit right to dispute ANY tradeline on their credit report, even if the consumer knows the listing is legitimate.

So why do you feel that people continue to post such misinformation?
No, I don’t think thats it Dr. Deth. These people are usually very clear that they feel disputing legit debts is fraud, and I’ve seen many suggest you can go to jail for it.

Lillian

mrclpacheco asked:


it *****!! they never report to all credit bureaus, if they do is 2 months later, is a ripoff!!! they advertise that it helps to build your credit…. how? if they don’t report to all 3 credit bureaus as they advertise…it think this is consumer fraud

Stanley

PublicResourceOrg asked:

United States Postal Inspection Service DeliveringJustice Identity Crisis: Protect Your Identity A High Noon Bullet Identity fraud is the fastest-growing crime in America. With millions of victims and losses in the billions of dollars, it continues to be one of consumers’ biggest fears. This free DVD tells the story of a couple whose credit is ruined and of the criminals who defrauded them. The DVD by High Noon Film, presented by the US Postal Inspection Service, also provides tips on how to protect yourself against identity fraud — and what to do if you become a victim. Identity Theft. Has someone taking over your good name? Protect your identity with these easy steps: * Deposit outgoing mail at the Post Office, or give it directly to your letter carrier. * Shred or tear up unwanted documents that contain personal information before discarding them. * Review your consumer credit reports annually. * Never give personal information over the phone or the Internet unless you initiated the contact. ID Theft: When Bad Things Happen To Your Good Name

Donald

Alexis asked:


I’m trying to make as much noise against a company that went to far with harrassing my husband. Please give me some formal complaint websites were I can post our story regarding about a mortgage company.
These are our complaints
Refusing to put someone in spanish on the phone, Refusing to take negative information off his credit report, refusing to stop harrasing him for a payment thier own records show they recieved.
Please no message boards. Only formal complaint websites like the consumer reporting agency.

Joan