Thursday

Credit Score Agencies: Where to get your FREE credit report

There are three primary credit report agencies in the US today. People who put the information into the computers aren’t perfect and mistakes can happen when entering the information into your file.

Equifax Credit Information Services, Inc. www.Equifax.com
Experian: www.experian.com
Trans Union: www.transunion.com

The Federal Trade Commission mandated by law that everybody is allowed free access to these reports annually. The place to get it is Annual Credit Report Request Service. AnnualCreditReport.com is a centralized service for consumers to request free annual credit reports. It was created by the three nationwide consumer credit reporting companies - Equifax, Experian and TransUnion.

AnnualCreditReport.com provides consumers with the secure means to request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies in accordance with the Fair and Accurate Credit Transactions Act (FACT Act).

All these sites provide a wealth of information and resources to help keep your report accurate.

The websites explain how to read and analyze the reports and how to contact them, if they contain information that you want to dispute. The credit reports show which bills you pay on time or don’t pay on time. They show your employer, any bankruptcy within the last ten years, and your child support agency. They list all accounts that you have had open for the last seven years and the dates the accounts were opened and closed. Every time you are denied credit, this information gets on your report. They list high and low balances on consumer accounts, interest rates on these accounts, and how much your payments are.

Once you get the reports, examine all the reported information. The first thing to look at is any negative items that are over seven years old. Except for a bankruptcy, which stays in the file for ten years from the date of discharge, other things can generally be challenged and removed.

There may be closed accounts or accounts showing late payments when in fact, they never were. There could be debts of your former spouse, accounts which aren’t yours or civil judgments that aren’t yours.

Remember accounts showing inaccurate information usually simply means information was entered wrong into the computer.

Another thing to look for is recent requests to open accounts or credit inquiries that were not initiated by you. This could be a sign of attempted identity theft. It’s estimated that up to 50% of the files have at least one error.

The Fair Credit Reporting Act gives consumers the right to review and challenge the items in their reports. Challenge every item you don’t agree with. When challenging items in the report, it’s best to do it in writing, via registered or certified mail, and keep a copy of the letter. Credit agencies are required by law to prove the accuracy of the information within 30 days. If they are unable to do so, the item must be removed.

The agencies will help you in correcting any errors and making your file as accurate s possible. They are not involved in decisions to give credit or deny credit, because it’s not their role to evaluate the data. They just collect and report information to current and prospective creditors, as requested.

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