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useful credit resource links
to learn more about credit
repair
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fair credit reporting act
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U.S. Public Intrest Research
Group 79% of Credit Reports
Have Errors!
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USA Today Credit Repair - No
Small Task
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CNN Reports 25% of Credit
Reports Contain Error
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Compare the Cost of Our
Service To the Cost of Bad
Credit
How To Read Your Credit Report
First off, there are three major
credit-reporting agencies in the
United States: Experian, Trans Union
and Equifax. Every 12 months, you
can print a copy of your credit file
from all three agencies by going to
a single Web site, CLICK LINK TO
"check credit free".
"Looking at one is a useless
endeavor; you need to look at all
three," says Director of Operations
at Favore Credit. "People tend to
pull one and think everything is the
same on all of them. That's not
normally the case."
The reports will have different
information because it's a voluntary
system, and creditors subscribe to
whichever agency they want -- if any
at all.
Favore Credit, stresses the
importance of ordering the report
directly from the credit bureau --
or through our website link for the
free report -- instead of asking a
buddy who works at a bank to pull
one for you. Those are written for
people who work in the credit
industry. The one you get from the
credit bureau is designed for
consumers.
"The information is the same, but
it's much more consumer friendly,"
according to Favore.
Well, not quite the same. The
report sent to a lender will list
the credit bureau member numbers of
your creditors and it won't have the
complete list of every company
that's pulled your credit
information for promotional
purposes, like pre-approved credit
card offers.
"If you compared the two reports
side by side, the consumer one will
have a couple more pages of
information," says Revolution credit
Solutions spokesman.
Anatomy of a credit report A
credit report is basically divided
into four sections: identifying
information, credit history, public
records and inquiries.
Identifying information is just
that -- information to identify you.
Look at it closely to make sure it's
accurate. It's not unusual,
Revolution says, for there to be two
or three spellings of your name or
more than one Social Security
number. That's usually because
someone reported the information
that way. This is how most CRA
blunders begin.
Other information might include
your current and previous addresses,
your date of birth, telephone
numbers, driver's license numbers,
your employer and your spouse's
name.
The next section is your credit
history. Sometimes, the individual
accounts are called trade lines.
Each account will include the
name of the creditor and the account
number, which may be scrambled for
security purposes. You may have more
than one account from a creditor.
Many creditors have more than one
kind of account, or if you move,
they transfer your account to a new
location and assign a new number.
The entry will also include:
· When you opened
the account
· The kind of
credit (installment, such as a
mortgage or car loan, or revolving,
such as a
department
store credit card)
· Whether the
account is in your name alone or
with another person
· Total amount of
the loan, high credit limit or
highest balance on the card
· How much you
still owe
· Fixed monthly
payments or minimum monthly amount
· Status of the
account (open, inactive, closed,
paid, etc.)
· How well you've
paid the account
On Experian's report, your
payment history is written in plain
English -- never pays late,
typically pays 30 days late, etc.
Other comments might include
internal collection and charged off
or default.
"Charged off means the creditor
has given up, thrown in the towel,"
Other reports use payment codes
ranging from 1 to 9; an R1 or I1 on
a report is an indication of a good
payment history on a revolving or
installment account.
Better off blank The next section
is the part you want to be
absolutely blank. The public records
section "is never a good story,"
Revolution says. "If you have a
public record on there, you've had a
problem."
It doesn't list arrests and
criminal activities; just
financial-related data, such as
bankruptcies, judgments and tax
liens. Those are the monsters that
will trash your credit faster than
anything else.
The final section is the
inquiries. That's a list of everyone
who asked to see your credit report.
Any time anyone gets into the
report, it'll post an inquiry" . "If
you call the credit bureau and ask
for a copy, it will be on there.
It's a very detailed entry record.
It's great for the consumer.
Inquiries are divided into two
sections. "Hard" inquiries are ones
you initiate by filling out a credit
application or taking your child to
the orthodontist. "Soft" inquiries
are from companies that want to send
out promotional information to a
pre-qualified group or current
creditors who are monitoring your
account.
You may have heard that a large
number of inquiries can have a
negative impact on your credit
score.. This is not always true but
in most cases the rule does apply.
For instance, the model has a
buffer period that ignores inquiries
within 30 days of getting a mortgage
or a car loan. It also counts two or
more "hard" inquiries in the same
14-day period as just one inquiry.
"You could have 30 in two weeks
and it only counts as one"
If you find a mistake on your
credit report -- an account that
isn't yours or Any information you
believe to be unverifiable -- you'll
need to get help or you may attempt
to go it yourself
The process takes time because
the creditors have 30 days to
respond to a charge of a
discrepancy. The CRA’s are very
rarely helpful and will attempt to
deter you from hiring a third party.
However when a company like Favore
Credit & Assoc. Credit Team gets
involved, the process moves much
smoother for the consumer.
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