The credit agencies and your lenders work behind the scenes to keep the most accurate and up-to-date tabs on your financial habits for your credit report. However, you might cause some negative information to appear on your credit report. In any case, you may be able to remove certain negative items from your report.
Creditors
The national credit bureaus get most of their information from your lenders. If you miss a payment, your creditor can report it to the bureaus, but does not have to. Sometimes, creditors give you a break and do not report the occasional error, such as a 30-day late payment. Lenders do not have to subscribe to the national credit reporting bureaus and many small lenders do not due to the extra time and money it costs them.
Credit Bureaus and Public Records
Ultimately, the credit bureaus are responsible for maintaining your credit history and putting negative items on your record. They also seek information that relates to your ability to repay a debt through public information databases from all levels of government, such as bankruptcies, tax liens and small claims judgments.
You, the Borrower
When you apply for a loan, the lender sends all of the information from the application to the credit agencies, including demographic information, such as your job and address. While demographic information does not hurt your credit score, lenders do take it into account when reviewing your application. If, for example, you change jobs or addresses all the time, they may interpret this as lack of stability.
Tip
The Fair Credit Reporting Act gives consumers the right to object to any negative item on their credit reports if they feel the agencies have listed it in error. You can write, phone or email the credit bureaus with your dispute. You might want to ask the creditor to correct a mistake, even if he only needs to contact the agencies to correct an error. No matter whom you talk to, always include copies of your evidence and only dispute items you truly feel are wrong.
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