Consumer Credit Reports – equifax experian score

Tim Gorman asked:




Under the Federal Fair Credit Reporting Act, the credit rating agency must remove accurate, negative information from your report only if it is over seven years old. Bankruptcy information can be reported for ten years, so this is one topic that actually states just how long negative information really stays on credit report.

The federal act specifically provides that any person who willfully or negligently fails to comply with any requirement imposed under act with respect to any consumer is liable to that consumer for, among other things, “the costs of the action together with reasonable attorney’s fees as determined by the court.” (15 U.S.C.) As used in this section, “consumer report” shall have the same meaning as that term is defined in the federal Fair Credit Reporting Act, 15 U.S.C., Sections 1681 et seq .

The Federal Fair Credit Reporting Act (FCRA) is a law that enforces accuracy, fairness and privacy of information in the files of every consumer credit reporting agency (CRA). These CRAs are agencies that collect and sell information about you — whether you pay your bills on time or have ever filed for bankruptcy — to other creditors, employers, landlords and businesses. This is the best place to find out how long negative information really stays on credit report.

Generally, the Federal Act does not preempt state consumer credit reporting laws, except to the extent that the state law is inconsistent with the federal Act, and then, only to the extent of the inconsistency. However, the Act does specifically preempt some state enactments. Generally, an action under New Hampshire’s Fair Credit Reporting Act must be brought within two years from the day on which the statute was violated.

Getting a loan is difficult enough without a negative credit history causing problems. It’s a good idea to look into your credit history several months before you want to get a loan. Applications are often denied based entirely on negative credit history information, such as excessive delinquencies, bankruptcies, or foreclosures, disclosed in consumer credit reports.

FCS institutions also use consumer credit reports to verify the obligations and monthly payments reported by applicants. Once your loan goes into repayment you will be building either a positive or negative credit history. Federal law specifies how long negative information remains on your credit report. The Feds have the definitive word on just how long negative information really stays on credit report.

Credit inquiries remain on your report for two years. Although inquiries stay on your credit report for up to two years, they are not necessarily negative information. However, too many inquiries may indicate to lenders that you are trying to take on more new debt.

Carla

neblitocatracha asked:


Countrywide home loans is the creditor that is still showing open and I also get a bill every month even thought that this creditor was discharged I have been disputing this for the last 7 months and I’m not getting anywhere(I have notify and dispute the account with them as well as the credit reporting agencies). As a consumer how I’m protected under the fair credit reporting act? what kind of rights do I have ? I know that my credit is less than perfect and it will be like that for the nex 10 years but Countrywide is making this long recovery process a big hassle! Any ideas please let me know.
Thank You,

Leo

Roger Passman asked:




Many Americans have had problems with credit, sometimes through no fault of their own. Perhaps you are one of those Americans that have experienced difficulty with credit, perhaps you have maintained a stellar credit history, but your credit report tells a different story. The sad fact is that nearly 80 percent of the credit reports issued in the United States contain correctable errors.

Whether you have experienced some problems with credit in the past or your credit report does not clearly or truthfully represent your credit history, a less than flattering credit report may mean the you are denied credit altogether or will be asked to pay a significantly higher rate of interest than someone with a higher FICO credit score.

There are some very simple things that can be done to improve one’s credit score that require little or no effort on your part. For example:
Avoid overspending by establishing a realistic and manageable budget If your debt to income ratio exceeds 25% take steps to reduce that ratio. Try to keep your debt to income ration under 15% thereby allowing a cushion for emergency needs. If you haven’t done so, establish a savings account, an investment account and begin to build a financial cushion. Even when money is tight, one can save a minimum amount each paycheck. If you can save through tax sheltered savings through your employment all the better. The point is save for your future. Get regular copies of your credit reports. Read and understand those reports. It often helps to consult a professional in the field to help you interpret what the reports mean. If you discover errors on the report, and the probability that you will is high, get them fixed immediately. If you don’t know where to start, consult an expert. Don’t avoid your creditors. If you have come on hard times the worst thing you can do is avoid your creditors. The bottom line is they want to get paid without having to take drastic steps to collect what is due them. Talking to the creditor, negotiating a deal you can live with, and making the agreed upon payments goes a long way to add positive information to your credit report. If your credit report is less than perfect it helps to get positive information added to your credit report. If you don’t know how to do this, consult an expert in the field. Finally, protect your Social Security number at all costs. Don’t give the number out to anyone but a trusted person. Don’t ever fill in your SSN on an unsecured web site. When asked to verify your SSN ask the person to read it off to you and you will tell them if they are correct. If they won’t do this you are being scammed. Ask if you can just verify the last four digits of your SSN. If this is not acceptable then you are being scammed. Ask if there are alternate identification numbers you can use other than your SSN. If not, then you must conclude that you are being scammed.

This advice is simple to follow. The consequences for not following these simple suggestions can be devastating. One client I am currently working with is paying over 20% interest on a car loan because of errors on his credit report. His car payments include over $300.00 of interest each and every month he makes a car payment. If he cannot refinance this car he may pay up to $15,000 extra in interest over a 60 month period than if he were able to finance the car at a reasonable rate through a prime lender. Your credit report tells an important story. Make certain it tells the right one.

Dawn

Louie Frias asked:




Depends…

On, how much debt you have.

What your intentions with counseling are.

On whether you understand how CCC on your credit report appears to a lender or underwriter.

On what an attorney advises you of.

On why you are even considering them in the first place.

Let’s begin with what “exactly” CCC is.

CCC’s are treated as non-profit entities whose goal in life is to assist a prospective home mortgage borrower or overwhelmed consumer manage their “out of control” debt. All CCC’s are governedy the FTC and anyone can own one. They are NOT a Federal Agency.

Credit card, auto loans, personal loans, school debt. By themselves these debts can be managed. However, when combined with increasing interest rate adjustments and dwindling personal income, they can quickly and easily become an alligator from which there is little hope of escape.

Many consumers are conditioned to react with knee-jerk responses to bankruptcy due to being innundated with attorneys advertising how easy it is to file bankruptcy.What they fail to disclose to the consumer is the changes in bankruptcy laws.Those laws were changed to prevent consumers from simply abusing credit. Charging astronomical amounts of goods and services with the intention of never paying them back – via bankruptcy.

Uninformed consumers who arrive at an attorneys office expecting this loophole to still be available are surely in for a disappointing shock. At that point morality steps in. Pay it back or not? Bankruptcy or CCC? Legalman pursuades a high percentage to go the route of bankruptcy.

Since I’m NOT an attorney, I cannot provide legal advice, however, I can provide information on why you might consider CCC.

In 2005 Congress enacted a new bankruptcy law that require consumers to attend pre-filing briefings and financial management skills classes by an approved credit counseling agency. A cursory investigation of numerous CCC websites reveal that while their “intent” is admirable, they do not fully disclose the effects of having CCC appear on a consumers credit report.

They’ll gladly tell you what’s on it and how to “manage” it through a debt management plan, but they won’t tell you how a mortgage underwriter will view their appearance. At best, they might attempt to explain “how” a FICO score works. (Lack of) Full disclosure is partly the reason Congress has investigated many over the years.

First understand that CCCS agencies represent the Credit Card industry – not the consumer. Think about it. When a consumer calls the card issuer, (which is VERY rare) the treatment received is overall demeaning; hence the avoidance of the call. Therefore, the card companies place a “middle-man” between themselves and the consumer. The card companies dictate the acceptable scope of terms and those terms are issued to the consumer.

So, if the consumer does not pay a fee for counseling, how does CCCS make money?

Credit card company subsidies AND the consumer may be presented with a bill for CCC services as well.

The consumer take a HUGE leap of faith in using CCC’s and here’s why. Remember, these are someone’s “business”. Businesses go “out of business” all the time. CCC’s exist to structure a repayment plan between the consumer and the creditor.

The “plan” is this. Negotiated, reduced monthly payments to your creditors.You send in adequate funds each month to CCC to cover the new monthly total.CCC then forwards the designated payment to the creditor. HERE’S the danger:

What if CCC fails to forward the payment? On time? Or in full? Any glich between CCC and the creditor and YOU get the harassing phone calls! Not CCC!

Some abuses have been so rampant, congress has even stepped in. Read about those here:

http://www.cccsnct.org/index2.php?option=com_content&do_pdf=1&id=53″

http://www.ftc.gov/os/2003/11/031120testimony.shtm

If you do decide to use a CCCS, investigate them. Ask for references.Ask if they supply you with monthly statements you can compare to your credit card and other debt statements. You need to account for every penny you send them and you need to be aware if those pennies are being received as scheduled.

Once you have accurate information, only then can you make an informed decision.

Victoria

Ras Reed asked:




What is the work of a consumer credit agency? Its major role is to help people like you get a copy of his or her consumer credit report. This is a report that anyone involved in borrowing should keep. In case you don’t know what a consumer credit is, it is a debt that an individual incur for the purpose of buying good and services. I want you to know that using a mortgage to buy a home is not regarded as a form of consumer credit. A very good example will be when you buy a vehicle, television, radio, or similar items with your credit card.

The major goal of a consumer credit agency is to keep track of all your entire financial history. But this holds if you make use of credit or lending to purchase items. You are assigned a score, also known as FICO score. This score helps us to know if you have the ability to repay the loan according to schedule. A higher score means that you can repay back the loan while a low score tells a lender that you are not good at repaying back the loan.

It is the duty of the consumer credit agency to store and supervise your borrowing and any debt you incur. In addition, it can help recognize identity theft and correct any error that may be found in your credit report. But you should be aware that the agency does not permit you to eliminate accurate information from your credit report. This is beneficial for you as the will be able to help you if your credit report contains error that may damage your financial history in the future. Hence, it is very important that you keep track of your financial history. If you don’t know how to go about this, hop online and you will discover many websites that can help you do it easily.

It is very easy for you to engage the service of any consumer credit agency that comes in a search engine while looking for one. This is dangerous. Remember, we are talking about your financial history here. If you or the agency you hire got it, you may live the rest of your life regretting your decision. Take your time. Look before you leap. It is even better if you patronize a well known agency. And agency that is known for a good track record of helping people like you in the same situation.

Jeff

Christopher Wright asked:




So, you’re ready to begin straightening out your credit. The first step is to obtain your credit reports from all three major bureaus. Equifax, Transunion, and Experian. The good news is that all three have coloberated to create one central location where you can obtain a free copy of your credit file, AnnualCreditReport.com

Keep in my that you can only request one free file from each bureau once every twelve months. Also know that that free request only includes the credit file and NOT the credit score. Didn’t think it would be that easy did you!?

There are other situations that can occur that will allow you to get a copy of your credit file for free also.

-A consumer credit report was used as the basis for turning you down for a loan, insurance policy, or job, and you request a free consumer credit report within 60 days of being notified of the denial by the creditor, insurance company or potential employer or other source that turned you down. The source that turned you down must tell you why you were denied. You should include that information in your request to the consumer credit reporting agency when you ask for a free report.

-You are unemployed and will apply for unemployment within 60 days from the date you certify your unemployment with the consumer credit reporting agency from which you seek the report;

-You receive public assistance; or

-If you believe your file contains inaccurate information because of fraudulent activity, you can file a fraud alert.

Kristen

Johnny asked:


Reason being,
about 3 weeks ago we started getting harassing phone calls from a junk debt collection agency. 10 years ago I settled a 10k cc debt for 5k. I got it in writing and it was on my credit report settled. Well now 10 years later I have a company called Palisades calling me on that. I have received 4 messages from them telling me I am facing a lawsuit that will freeze/seize my assets. They left two at my parents telling them they I am in serious legal trouble. I also got a letter informing me they are doing a employment and asset search to avoid this you must pay 7k. I finally spoke to them and told them i don’t owe them anything that was paid off 10 years ago. They then told me it was for the defency and they will get a defency judgement if I do not comply. I stoped contact with them, but I could not find my settlement letter. I was refered to a consumer rights attorney, they told me to see if I have old credit reports. Lucky I found one with my closing papers for my home and that debt was listed on there as settled in 1999. I pull up a credit report now and it is not on there as it fell off of the 7 year period.
I went to the attoneys office last week to play all of the messages and the letter, with copies of my credit report.
Today I got a call from them, telling me they found 14 violations. 7 where threating and abusive language on the letter and phone calls. 7 others were bringing up the intention of a lawsuit where the statue of limitations is up. They told me this case has a merit up to 14,000 as it is 1k per violation plus attorney fees. I signed a retainer agreement last week stating I dont have to pay anything unless there is merit. The attornies office is looking a filing the papers next week in the federal court system. Anyone ever hear of this?

Martin

abfabmom1 asked:


A few months ago, I inquired with my bank about some options for an auto loan (which I ended up not needing, thankfully). At the time, the loan rep said that my Experian credit score came back to them as 0.

This didn’t make sense to me, since I was holding a freecreditreport.com report, that showed numbers from all three agencies, averaging about 660, and within ten points of each other. Also, my two most recent credit accounts were with this very same bank.

I tried getting numbers from FICO, but they can’t issue a report to me, since I don’t have any open accounts, and my most recent accounts were closed more than six months ago.

All the experts say I should know my credit score, in order to be an intelligent consumer. But how can I possibly really know it, if the agencies are reporting one thing to me, and something else to the lending agencies?

Do I really have to be stupid enough to continue paying interest, in order to get more credit? It seems to me that living within my means should show that I’m smart enough to be worthy of getting a loan.

I’m confused and frustrated. How can I really be smart about what I’m doing, if I can’t get straight answers?
But I DO have debt and payment history. I simply got rid of the debt, and haven’t needed credit lately.

My last two car loans have been from this same bank. The last loan was paid off in April of 2008…I guess just long enough ago that FICO won’t look for it. (?) That’s really stupid. (Grrr).

Eva

Thomas Morva asked:




The Fair Credit Reporting Act (FCRA) regulates the quality of a credit report and any errors occurring in the report should be corrected immediately so that future financial disasters can be avoided. Under the FCRA, the credit reporting companies as well as the person concerned are responsible for correcting the mistakes in a credit report.

Proactive action is the best method for disputing any of the items in a credit report. A letter should be sent to the consumer reporting company stating the inaccuracies or discrepancies in a credit report. A copy of the documents that prove the inaccuracies in a report should also be attached to the letter. It is important to keep receipts of the certified mail in case it is required as a proof in further investigations.

The consumer reporting company must oblige within a month and correct the inaccuracies present in the report. If there are no inaccuracies then a letter intimating the concerned person ought to be sent. However, if the consumer reporting company does find any mistakes then a written notice must be sent to all three consumer reporting companies stating the exact inaccuracies in a report.

If the disputed items are corrected then the company is legally bound to send a corrected copy of the report to the consumer. This free report does not count as a person?s annual free report. If an item is changed or erased, the consumer reporting company cannot put the disputed information back in the file unless the information provider verifies that it is precise and comprehensive. The consumer reporting company must also send a written notice that includes the name, address, and phone number of the information provider.

If an investigation does not resolve the dispute with the consumer reporting company, then a person can ask that a statement of the dispute be included in the consumer?s file and in future reports. The consumer can also ask the consumer reporting company to provide your statement to any party who received a copy of the report in the recent past.

Roland

Amy Cooper-Arnold asked:




Whether you have no credit or damaged credit, secured credit cards are a good tool for building a good credit history.

Several months ago Tom, a member of CreditBoards.com, filed for a Chapter 7 Bankruptcy. Now he is in the process of rebuilding his credit history. It’s a task that is not easy, but with patient persistence he is seeing progress already. Daily he checks his credit score and is slowly seeing improvement.

1 – In addition to correcting every mistake, even the smallest ones, on his credit report, he is using a secured credit card.

2 – This secured card is an important tool in the overall process of building or rebuilding credit.

Who should consider a secured credit card?

Someone who has no credit history.

Someone with a damaged credit history.

What is a secured credit card?

Secured cards are credit cards opened with a deposit into a savings account, money market or certificate of deposit. The amount of deposit required varies from card to card, but generally minimum amounts range from $250 – $500. These funds are considered your security and will even earn a little interest since they are being held in a savings account. Your credit limit is determined by the amount you deposit into the savings account. Sometimes the limit will be for the full amount of the deposit; other times it will be a percentage of the total.

It is important to keep in mind that a secured card is a credit card, not a debit card. If full payments are not made each month, then interest is charged on the outstanding balance. And the lending institution uses the security money to pay off the debt only as a last resort. Even though the card is secured, it is still possible to damage credit.

What are the benefits of a secured credit card?

Establishing credit. If you have never had a credit card, a good first step in establishing good credit is applying for a secured credit card. Assistant Professor of Economics at Austin Peay State University in Clarksville, TN, Jerry Plummer says, “A secured card is most useful for the person starting out on their credit history, since it says that the person is willing to take the extra step to establish credit.”

Reestablishing credit. If your credit history is damaged, you may only be able to qualify for a secured credit card. Using this secured card appropriately and within the set parameters will help rebuild your credit and qualify you for an unsecured card. If you have had to file for bankruptcy, however, you may not qualify until it has been discharged.

Preset limit cannot be exceeded. If poor spending habits were part of the cause for bad credit, then a secured credit card will help keep spending in check.

Useful for transactions that require a credit card. Hotels and car rentals require the use of a credit card. If you don’t qualify for an unsecured card but you do for a secured card, then you are still able to make the transaction.

What should I look for or avoid when shopping for a secured credit card?

Fees. This is the area you will really want to research when shopping for a secured credit card. Some cards will come with fees that run into the hundreds of dollars, eating away much of the credit you secured with the savings account. Professor Plummer says a card with no fee is the best, but a small one-time fee can be okay. Annual fees for attractive secured cards typically range from $20-$35. Be sure to watch out for hidden fees such as “registration charges” and “setup fees.”

Interest Rate. Just because you have no or poor credit doesn’t mean you have to settle for the highest interest rate. Interest rates for attractive secured cards should not exceed 19%. Shop around and get the most competitive rate available.

Read the fine print. Linda Tucker, Director of Education for Consumer Credit Counseling Service for Arkansas and Memphis, TN, stresses the importance of reading the fine print. Doing so will let you know your exact obligations to the issuing company: for example, the grace period, what happens if you don’t make a full payment, and what fees are attached if you don’t make the full payment. Understanding these details will help make sure you are not further damaging your credit.

Fraudulent Offers. As with unsecured cards you need to watch out for fraudulent offers.The Federal Trade Commission gives the following advice to protect yourself from credit card fraud:

Offers of easy credit. No one can guarantee to get you credit. Before deciding whether to give you a credit card, legitimate credit providers examine your credit report. A call to a ’900′ number for a credit card. You pay for calls with a ’900′ prefix — and you may never receive a credit card. Credit cards offered by “credit repair” companies or “credit clinics.” These businesses also may offer to clean up your credit history for a fee. However, you can correct genuine mistakes or outdated information yourself by contacting credit bureaus directly. Remember that only time and good credit habits will restore your credit worthiness.

When will I qualify for an unsecured credit card?

It can take several months to see an improvement in your credit history. Bankrate says it’s a good indicator when you start receiving flyers in the mail for unsecured cards that your credit is improving. However, it’s a good idea to continue taking things slowly. Using a secured card will help you learn healthy habits so that when you do get an unsecured credit card you remain in control of your spending and credit.

Where can I find a secured credit card?

Most companies don’t advertise secured cards. But you can visit the Card Reports section of http://www.CardRatings.com to find out where and how to apply. Click on the link entitled “Cards for Consumers with Poor or No Credit”.

Other tips

Tom recommends sticking with only one or two cards and keeping spending to a minimum. The goal is to pay the card off each month.

Tucker emphasizes the importance of paying the amount due each month; otherwise late fees can be charged, interest rates raised, privileges lost, and credit history negatively affected.

Make sure you are getting a credit card as opposed to a gas card or a department store card.

Make sure a reputable bank or credit union, even a local one, is issuing the card. And, don’t automatically assume a bank is issuing the card.

Not all issuers report to the three major credit agencies (Experian, Equifax, and TransUnion). It’s important to get a card that does report to all three agencies; otherwise you will be wasting your time. Fortunately, secured cards normally report to the credit agencies just like unsecured cards (you should verify this before applying).

If you have filed for bankruptcy, you may need to wait until it has been discharged before qualifying for a secured card.

Get one only if you cannot get credit, since you have no credit record; or if you have poor credit. Plummer says, “Many companies will not even count them as credit, such as automobile F&I (Finance and Insurance) people, although they will not admit it.” So, if you don’t really need a secured card, you will be doing more harm than good.

Finally, whatever situation you are in, no credit or poor credit, the best way to build good credit is to set up a budget and then stick with it.

1 You can pay membership fees to any one of the three credit bureaus – Experian, TransUnion, and Equifax- to be able to check your credit score online daily. Visit our Credit Information section for more details. Tom recommends purchasing Microsoft Money 2004, which comes with a one-year membership to Experian (value of $99.00).

2 To find out more about correcting errors on your credit report, read our article How to Correct Mixed or Split Credit Reports.

June