Your credit report is very important in determining whether you get the house, car, or credit card you desire. How do you go about finding out what your credit report says to the lenders, and what can you do to establish a good credit report rating?
The first step to understanding what lenders see and obtaining a good credit report rating is to obtain a copy of your credit report. Your credit history is maintained by three agencies, called “repositories,” that collect information about you. Under the Fair Credit Reporting Act, you are entitled to a free copy of your credit report if you have been turned down for any credit issue within the previous sixty days. You may also receive a free credit report if you are a resident of Colorado, Georgia, Massachusetts, Maryland, New Jersey or Vermont. If you were turned down for credit, follow the instructions in the denial notice you received. Otherwise, a copy may be obtained from any or all of the three credit companies for about $8.50 each.
The three major credit-reporting agencies to contact are:
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Equifax Credit Information Services
PO Box 740256
Atlanta, GA 30374-0256
800-685-1111
www.equifax.com
Experian National Consumer Assistance Center
PO Box 949
Allen, TX 75013-0949
800-682-7654
www.experian.com
Trans Union National Disclosure Center
PO Box 390
Springfield, PA 19064
800-888-4213
www.tuc.com
To request a copy of your credit report, include the following:
- Your full and complete name, including Jr., Sr. and III
- Your current address
- Your previous addresses, if any, for the past two years
- Your Social Security Number
- Your date of birth
- Your phone number
When you receive your credit report, carefully check the information listed to ensure that your history is up to date. Creditors can be slow in reporting bills that you have paid off. Sometimes they do not bother to report when your debt is paid. Next, look for other flaws or mistakes in your credit report. Make sure that the information reported on the credit report is yours. Your adult child’s credit, or a total stranger’s credit could be included in your credit report.
Search for incorrectly dated account closings, especially when you have had to ask repeatedly to terminate your account. Often, when companies are notified that they have failed to close accounts as previously requested, they close the account on the date of the most recent request instead of the original one. And that can lead to problems because recent account closures are often taken as a sign of financial difficulty.
If your credit report has been less than perfect, there are certain things that may help you restore your credit report. A consumer credit agency in your area can work you’re your creditors to develop a payment plan that works for both you and your creditors. Some companies will accept a reduced monthly or lump sum payment to write off the debt.
A secured credit card may help you restore your credit report. Creditors look more closely at how credit is handled presently. Paying your payments on time will assist in repairing a damaged credit history.
By R. S. Wagner