How to Obtain a Credit Report for the Deceased

As the executor or administrator of your loved one's estate, one of your fiduciary duties is to make sure that outstanding debts are paid from the estate's assets. Obtaining a credit report for the deceased can help you identify existing loans, credit card balances and other types of debt of which you may be unaware. However, this also lets you make sure that an identity thief has not acquired the deceased's personal information to coast on your loved one's good credit history.

Instructions

1

Gather the information you need about the three major consumer reporting agencies (CRAs)you will need to make contact with Experian, Equifax and TransUnion individually. Contact information is as follows:

Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
1 (800) 685-1111

Experian
P.O. Box 2104
Allen, TX 75013-0949
1 (888) 397-3742

TransUnion
P.O. Box 1000
Chester, PA 19022
1(800) 916-8800

2

Put your request in writing, advises financial adviser Lucy Lazarony. In your letter, specify your name and contact information and your relationship to the deceased. Specify your loved one's full name, Social Security number and most recent address. Also make sure the CRA puts a "do not issue credit" notice in your loved one's credit filethis is also known as a "security freeze." Include copies of the deceased's death certificate as well as documentation supporting your legal relationship with the deceased as executor or administrator of the estate.

3

Make copies of all correspondence sent to the CRAs and send the originals by certified mail, return receipt requested. By doing so, you ensure that the CRA receives notification of your loved one's death, as well as your request for his credit report.

4

Further protect your loved one from identity theft by contacting the Social Security Administration, which assembles a "Death Master File," advises MSN Money (although CRAs will defer to this file, they typically do not do so right away). Once informed of your loved one's death, her Social Security Number will be marked as "inactive"a further deterrent to identity theft. For more information, see the Resources link below.

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Does Co-Signing an Apartment for Someone Go Against Your Credit?

If you co-signed a lease, or you're thinking about it, you should be aware of the potential impact it can have on your credit. The act of co-signing a lease in itself does not go against your credit. However, if the tenant for whom you've co-signed ends up owing the landlord money, you can ultimately be held liable.

Rent Owed or Damages

If a tenant falls behind on rent, landlords have the right to begin the eviction process. If a tenant is evicted and owes back-rent, the landlord can file a claim -- usually in small claims court -- to recover rent owed. Often, both the tenant and the co-signer will be named as parties to the civil suit. Additionally, if a tenant caused damage to the apartment beyond normal wear and tear, a landlord can sue a tenant for the cost of damages.

Collection and Civil Judgment

Once a landlord receives a civil judgment against the former tenant and co-signer, the tenant's wages and/or bank account can be garnished. The landlord also has the right to seek out the co-signer and collect money owed from the co-signer's wages or bank account. In lieu of obtaining a civil judgment, a landlord can turn the matter over to a collection agency.

Impact on Credit

A co-signer's credit is negatively affected if the tenant defaults on the lease and the landlord obtains a civil judgment or turns to a collection agency. Whenever debt is turned over to a collection agency or a civil judgment for money is obtained, it is reported to credit reporting agencies and credit scores are negatively impacted. For the co-signer, this can cause future difficulty obtaining loans or lines of credit.

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Credit Score FAQs

Your credit score determines whether you can qualify to borrow money. It also determines the interest rate you will pay when you buy something on credit. If you have a high credit score, you can qualify for lower interest loans and ultimately pay back less money over the course of your life. Your credit score is based on formula developed by the Fair Isaac Corporation, called your FICO score. FICO scores range from 300 to 850, and whatsmyscore.org says most Americans score in the 600s or 700's. In addition to your score, you also have a credit report that contains details about your borrowing record. Three different companies maintain credit reports- Experian, TransUnion and Equifax.

How is My FICO Score determined?

Your FICO score is determined by several different factors. Thirty-five percent of your score is based on your payment history, and how responsible you have been about making on-time payments in the past. Thirty percent of your score is based on the amount of money that you owe to your creditors. Fifteen percent is based on the amount of time that you have had credit. Ten percent is based on whether you are applying for a lot of new credit. The last 10 percent is based on the specific types of credit you have used.

What factors impact my payment history?

There are a couple of different things that go into determining the part of your score that deals with payment history. Any bankruptcies or judgments against you affect this portion of your score. A bankruptcy or a home foreclosure has the most adverse impact on your credit score, and can stay on your credit report for up to 10 years from the bankruptcy. Likewise, if you settle a debt for less than what you owe (for example you have a short sale on a house) then this adversely affects your "payment history." In addition, even a simple late payment can lower your credit score. Creditors report payments that are 30 days late, 60 days late or 90 days late, and these records can also stay on your account for up to seven years and have an adverse impact on your payment history record.

Does carrying a balance lower my credit score?

Carrying a balance on your credit cards that nears the limit of your card can adversely impact your credit score. In addition, owing a lot of money in relation to what you make can impact your score. These two components make up the portion of your score determined by amount owed, or 30 percent of your score.
The first factor, the amount you owe in relation to the amount of credit available, is called your debt-to-credit ratio. Credit card companies do not like to see cards "maxed out." In other words, if you have $10,000 available to you, you should not borrow the whole $10,000. Your credit score would be higher if you had two cards with $10,000 available and borrowed $5,000 on each of those cards, than if you had one card with a $10,000 balance and a $10,000 limit.
The second factor, the amount you owe in relation to what you make, is your debt-to-income ratio. The more money you make, the more money you can borrow.

What if I open new credit cards?

Opening new credit cards hurts your credit score in two ways. First, when you open a new card the creditor will "pull" your credit report (request it from the company). This shows up as an inquiry. Having multiple inquiries lowers your credit score because creditors get nervous that you are running up large debts you won't be able to pay. Second, opening new cards lowers the average age of your credit accounts, which lowers your overall credit score.

What else can I do to improve my score?

Having a mix of different types of credit can help raise your credit score. You should try to achieve a good mix of secured loans (like mortgages and car loans) and unsecured debt (like credit cards). You also want to ensure that there are no mistakes on your credit report. You can obtain a free copy of your credit report annually from each of the three major credit bureaus, and should do this periodically to ensure accurate reporting of information and to protect against possible identity theft by looking out for any new cards opened in your name or other suspicious activity.

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What Are the Functions of Equifax, Experian & TransUnion?

Equifax, Experian and TransUnion are the three major consumer credit reporting agencies that operate in the United States. All three companies are for-profit enterprises that function to earn revenue. The Fair Credit Reporting Act requires that the businesses abide by certain rules and restrictions as to how they manage personal and financial data of U.S. consumers. Thus, the agencies play an important role in compiling individual credit histories and disseminating that information.

Identification

Equifax, with world headquarters in Atlanta, Ga., trades on the New York Stock Exchange under the symbol EFX. According to the company's website, Equifax offers a wide range of products from fraud protection to prescreening mortgage applicants. Equifax's largest customers are financial institutions that lend money to consumers.

Experian, headquartered in Dublin, Ireland, trades on the London Stock Exchange under the symbol EXPN. Experian has what the company calls four principal lines of business. These include providing credit information on consumers to lenders and providing software to help businesses refine approaches to lending.

TransUnion claims 45,000 customers on five continents and provides credit histories on consumers to clients in several markets. According to TransUnion, the key markets in which the company conducts business include financial services, collections and healthcare, among others.

Distributors

All three agencies compile and distribute information related to consumers' credit-related activity. Consumer credit reporting agencies gather data, assemble credit histories on individuals, assign credit scores based on the histories and sell the reports to others. Insurance underwriters, healthcare providers, rental property managers, employers, mortgage companies and banks are a few of the types of businesses that use the services of consumer credit reporting agencies. The histories and credit scores assigned by the reporting agencies can affect what the consumer pays in insurance premiums and interest rates or whether a consumer is approved for credit.

Free Annual Report

Under the provisions of the Fair Credit Reporting Act, each of the three major consumer credit reporting agencies must provide consumers with a free copy of their credit report on file at the consumer's request once per year. Free copies of your credit reports can be obtained through the Annual Credit Report website. It is possible to stagger when you receive the reports so that individual credit history can be checked every four months free of charge. For example, request one report in January from one agency, request one in May from the second agency, and request the third in September.

Fraud Alert

Federal regulations require the major consumer credit reporting agencies to place a fraud alert on a consumer's file if requested by the individual. This protection makes businesses aware that the consumer believes identity theft could have occurred. According to federal law, a consumer does not have to contact all three major agencies. When one is contacted, the company is required to notify the other two. In this role, the agencies function as a warning system.

Clarification

When news anchors or financial pundits refer to credit rating agencies, most often the reference is to another big three -- Moody's, Standard and Poor's, and Fitch's. These three companies are the major players in rating the credit quality of businesses and governmental agencies in the United States and should not be confused with consumer credit reporting agencies.

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How to Compare Credit Reporting Companies

Credit reporting companies, also known as credit bureaus, are storehouses for consumer credit history. Throughout the United States, there are more than 1,000 local and regional credit reporting companies, but the majority are under contract or owned outright by three primary national credit bureaus: TransUnion, Experian and Equifax. Each uses its own version of the FICO (Fair Isaac Corporation) credit-scoring method to rate consumer credit. Your FICO score plays a central role in your ability to acquire loans, insurance, credit cards, jobs and in some cases, housing.

Instructions

1

Research the three credit reporting companies to learn about the products and services each offers, such as identity theft protection, continuous credit monitoring, credit reports and scores. They each have their own websites online, and you can find comparison information offered by other companies online as well, such as HowToEstablishGoodCredit.com and Credit-Report-Review.com. Credit-Report-Review offers rankings and detailed information about products available from some of the smaller credit reporting agencies, including which of the three major bureaus each agency uses for their credit monitoring services.

2

Order your credit report from each of the three national credit bureaus. You are entitled to one free report from each agency every 12 months. The three bureaus have established a central website -- AnnualCreditReport.com -- where you can order your reports, either one at a time or all at once.

3

Check over your reports carefully for erroneous information. The credit bureaus don't gather and report your information in exactly the same manner, and mistakes do get made that could affect your credit rating, so you should report any errors to the particular reporting bureau immediately. Occasionally, someone else's information could end up on your report, such as someone with the same name or a similar Social Security number.

4

Decide on your purpose for ordering your credit report. Comparing credit reporting companies may simply come down to a personal preference on your part and how well you can interpret the information within the varying formats offered by each bureau. If you require the reports because you will be getting a home or car loan soon, keep in mind that lenders may look at any one of the three reports, and they are not obligated to tell you which one they use.

5

Purchase your credit report with a score. Unfortunately, the free yearly reports you are entitled to do not come with a credit score. You can purchase individual reports from each bureau (fees range from $14.95 to $15.95), or they each offer a three-in-one credit report and score that includes a score from each bureau, which typically costs around $39.95.

6

Compare your scores from each of the credit reporting companies. Do not expect to see an identical score, as all three bureaus may not have the same credit information about you, and all lenders do not necessarily report their data to all three bureaus.

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Why Do Companies See a Different Credit Score From You?

When you apply for a loan, your creditor wants to know whether you're likely to repay that loan. One way a creditor tries to gauge this likelihood is by using a credit score, a numerical representation of your history as a borrower. Not all credit scores are the same, and even if you know one score, your creditor may use a different score.

Credit Scores

There are a wide variety of credit scores, each with different strengths and weaknesses. The most widely used score, the FICO score, ranges from 300 to 850, with scores of 700 or higher representing good credit histories, according to the Federal Consumer Information Center. When you apply for a loan, the creditor might look at one or more of your scores to determine if you should get your loan.

Types of Scores

Apart from the FICO score, so-named because it was created by the Fair Isaac Corp., creditors and consumers have access to a variety of types of scores. The VantageScore, for example, was created by the three consumer credit reporting agencies, Equifax, Experian and TransUnion. Other scores include the PLUS score, TransRisk score and CreditXpert score, each using slightly different calculation methods. According to Consumer Reports, the score provided by one company might indicate you are an excellent borrower, while a score provided by another might list you as merely an average borrower.

Updates

Even if you and your creditor request the same credit score, your creditor may see a different score based on when you requested the scores. Credit scores change as credit reporting bureaus add new information to your credit report. If, for example, you received your score a week before applying for the loan and a new item has since been added to your report, the score the creditor sees might be different because it reflects new information.

Other Factors

Even if the credit score your lender looks at tells the lender you are a safe borrower, that doesn't mean it will approve your loan application. Lenders also look at other factors, such as how much income you earn and how much debt you currently have. For example, if you have an excellent credit score but have a debt-to-income ratio of about 36 percent or higher, a mortgage lender is much less likely to give you a loan, according to Lending Tree.

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Comparison of Prepaid Debit Cards to Rebuild Credit

About 50 million people in the U.S. have no credit history because they do not qualify for a credit card or use lenders that do not report to the major credit bureaus. Although prepaid credit cards, which require the customer to load funds into the account, look and act like a credit card, they rarely build a traditional credit history. Instead, they report to "alternative" credit agencies.

Considerations

Prepaid debit cards do not build credit history with the national bureaus, according to Maxine Sweet, head of Public Education at Experian. The credit bureaus do not list information on prepaid accounts because they lack firm data suggesting that this type of account predicts a person's willingness to repay a debt. Also, issuers of prepaid cards often do not have the technological requirements and financial resources to report to the major bureaus.

Alternative Agencies

When a prepaid credit card claims it can help build credit, the issuer usually means it reports the account to an alternative agency, such as PRBC. Alternative credit agencies allow consumers to report just about any type of account as long as it can verify the payment history on the account. Alternative credit reports are usually designed to meet or exceed accuracy of traditional credit histories, so some lenders are very welcoming on alternative histories, according to Market Watch.

Potential Benefit

Even though alternative credit histories can have a better predictive value than a traditional history, alternative reports are not widely adopted in 2011, but the trend is to increase the acceptance of nontraditional histories. The company that develops the major credit scoring scoring system in the U.S., the Fair Isaac Co., has a scoring system similar to the FICO risk model preferred by most lenders that incorporates alternative payment data. In 2010, the FICO Expansion score helped 10 million people establish a credit history, so building alternative credit data now could help borrowers gain credit in the future.

Secured Account

Borrowers can probably find some kind of account that reports to the national credit bureaus. Secured accounts are notoriously easy to acquire, because the lender requires a security deposit on the line of credit. Retail and gas cards are also good options for borrowers with bad or no credit. However, consumers should use these types of accounts to eventually apply for a regular credit card account with a national bank.

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