If you don't know your weaknesses in any given aspect of your life, how are you supposed to improve? In the same vein, you must know your weaknesses as a credit user in order to raise or maintain your score, and this is where credit reports become an essential tool. A credit report lists every bank account and line of credit you've ever had, and monitors your history as a consumer. It judges your creditworthiness based on bill payment history, ratio of debt to credit, number of accounts open, length of credit history and history of bankruptcy.
Your One Free Report
Every U.S. consumer is entitled to one free credit report every 12 months, and there is only one authorized source for this free report: annualcreditreport.com. This website allows you to choose through which of the three main agencies you'd prefer to obtain your report: Experian, Equifax or Transunion. You can obtain one free annual report from each of these agencies, so technically you can obtain up to three free credit reports in any given year.
Exceptions
You can obtain your credit report for free more than once a year in a few situations. If your identity is stolen or fraudulent charges have been made to your accounts, you may obtain a free report. You also qualify for a free report if information in your report has caused a person to taken adverse action against you, if you are on public assistance and if you are unemployed but plan on applying for work in the next 60 days.
How to Get Your Report
Order your report in one of three ways: online, by phone or by mail. To order online, go to annualcreditreport.com and submit an online form. You need your personal information and recent addresses to access your report. To order by phone, call 877-322-8228. To send a request by mail, print out the Annual Credit Report Request form (see Resources) and mail it to:
Annual Credit Report Request Service
PO Box 105281
Atlanta, GA 30348-6281
Dealing with Inaccuracies
If you've found an error on your credit report, it's your right and responsibility to dispute it. Credit reporting agencies are bound by law to maintain updated and accurate information on your report, but people make mistakes and sometimes an inaccuracy will pop up. If this happens, write a dispute letter explaining what you believe is wrong and why it should be removed, and make a request for its removal. Attach copies of any documents that support your point. Contact the FTC at 877-FTC-HELP for assistance in compiling your letter.
Fair Credit Reporting Act
The Fair Credit Reporting Act protects the privacy of consumers and gives them the access they need to their credit history. For example, you have the right to know whether information in your report has been used against you --- maybe you've been denied a mortgage, a car loan, or even a job. Whoever denied you credit must tell you the name, address and number of the agency who provided the information. The FCRA also allows you to know what's in your file and what your credit score is (which will cost a fee), and to dispute information in your file.
0 comments:
Post a Comment