In Part 2 of our credit series we review how to correct errors on your credit report! Topics covered include:
-How to access all three credit reports
-When and how to file a dispute with credit bureaus
-Bankruptcies and negative transactions on your credit
For more information please check out Part 1, and also head to our website at www.brentonharrison.com
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When you dispute false information on your credit reports normally the credit reporting agencies (Equifax, Experian, and Trans Union) do NOT believe you but instead believe the creditors (furnishers of information).
As we have explained in other videos and on our blog and website, when there’s something inaccurate on your credit report, generally you need to go directly to the credit bureaus and dispute that.
The credit bureaus, even though they have an independent obligation to investigate, generally won’t do anything other than go to the furnisher of the information (in other words, the creditor) and say, “So and so disputes this. Should we keep it or not keep it on the credit report?” Then they will do whatever the furnisher or creditor tells them.
That’s puzzling to people. People will ask us, “Why do they do that? Why do they give such deference to the furnisher? I’m telling them this is not my account. Why do they believe the furnisher over me?”
There’s one very simple answer. It’s money. That’s the reason why they do it. You are not their customer. I understand that you may pay them to get your credit report or you may be in some monitoring program with them. They love that money. Don’t get me wrong. But you’re not their customer.
Their real customer is the furnisher and the creditor. That’s the customer that’s paying them a lot of money every month.
What it comes down to is, “Are we going to believe you, or are we going to believe this company that provides us enormous revenue?” It’s not hard to see why they do that.
That doesn’t make it right or change their obligation under federal and state law. When they just defer to these furnishers and keep false information on your report, then you’re entitled to sue the credit bureau and the furnisher.
This is no excuse for why they do it. I’m just telling you the real reason why. It comes down to money.
Here are the frequently asked questions on credit report errors – http://www.alabamaconsumer.com/CM/Custom/FAQs-about-Fair-Credit-Reporting.asp
If you have any questions about what we’ve talked about in this video, feel free to call us at 1-205-879-2447.
Thanks for watching!
John G. Watts
Watts & Herring, LLC
Serving consumers across Alabama
You definitely can fix credit report errors on your own.
The only exception is if you have to sue in court.
In that case, you may need to hire an attorney to sue the credit reporting agencies and/or the furnishers of the false information. This suit is normally brought under the FCRA (Fair Credit Reporting Act).
Hope this is helpful to you.
If you have any questions, give us a call at 1-205-879-2447.
Thanks for watching!
John G. Watts
Watts & Herring, LLC
Serving consumers across Alabama
Your credit report contains vital information that affects your credit score. Every time you take up a loan or apply for credit, your lenders will access your credits report to see if you qualify for the it. Thus it is imperative that you constantly monitor your credit report to make sure it is in good health.
Given the monstrous amount of data each credit bureaus process on a daily basis, there are bound to be errors in one form or another. Here are a few common errors found in credit reports:
1. Incorrect spellings
This can happen to your name, addresses, telephone number, email address, social security number and so forth. Misspelling can means your report contains negative records that belong to someone else! Just fixing these minor details can give you a significant boost in your credit score.
2. Information that should not be there
Most negative records should disappear from credit report in seven years or less. The exception being bankruptcy which can stay in the report for up to ten years. Make sure to go over the negative records in your credit report and look out for those records that should not be there.
3. Double listing of loan information
This may come as a shock for many people when they noticed that their mortgage loans (or other loans) have been listed more than once in their credit reports. This will inflate the debt amount artificially and increase the debt-to-credit ratio (which is not a good thing).
Lenders may not notice the double listing errors and instead focus more on the debt-to-credit ratio and debt amounts to make their decisions.
4. Missing positive information
If you review your reports from the three major credit bureaus, you probably notice that they are not entirely identical. If you look closer, you will probably find some positive records that exist in one report but not the others.
Don’t ignore them. List them down for each report and call up each credit bureau to report the discrepancy. Positive records can give your credit score a big boost so make sure all of them are included in the three reports.
The three major credit bureaus handle a large volume of data each day and thus it is inevitable that errors will occur. However, it is your responsibility to ensure that your own credit reports contain the correct data. Review your credit reports once every six month and take action quickly when you find any errors.
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If you think there’s one on your own credit report, be sure to submit a particular dispute utilizing the correct bureau. Along with a letter explaining the error, distribute the incorrect report and highlight the disputed information. The bureau must start processing your dispute within monthly of your distribution. If a negative error is fixed, your credit score will enhance.
regardless if you are repairing your credit or simply keeping good credit, you need to inspect your month-to-month bank card statements carefully. Demonstrably you intend to get and dispute any charges that appear incorrect to you. Your dispute will go better the sooner you begin it, so finding dubious charges as quickly as possible is essential.
An important tip to think about whenever attempting to fix your credit could be the benefit it has together with your insurance coverage. This is really important since you might save much more cash on your automobile, life, and residence insurance. Generally, your insurance rates are based at the very least partially from your credit score.
Even though you could be afraid you certainly will fall back into the charge card pitfall, steering clear of the utilization of bank cards entirely does little to boost your credit rating. Use each card for at least one acquisition each month to help keep the account energetic and stating on your credit history. Holding also a tiny stability and spending it off next thirty days could cost you a little bit of interest, but is really worth showing your potential lenders which you make appropriate payments.
Bills should never be left outstanding for enough time to come up with belated charges when a person’s credit needs repair. Customers that incur belated costs regularly are those that organizations are most likely to make bad credit reports about. It is best to get hold of businesses about costs payment dilemmas rather than dismiss them. They will certainly only worsen with time.
Consolidate a lot of your greatest interest credit cards into one huge balance with a lower life expectancy interest rate. One chance for doing this would be to always check a peer to peer providing web site. These sites provide interest rates that bypass typical costs that you’d bear with conventional financial, and permit other folks just like you to finance your loan at a diminished rate than a bank usually would.
Save the accounts that you will be in good standing with despite your credit issues. For those who have great standing records, you wish to make certain that they remain that way as they are stopping your credit from decreasing any more. You intend to work with those accounts which are in default, but remember accurately those that are not for preserving your credit.
Make certain to create your repayments promptly whenever you subscribe a phone service or the same energy. Most phone organizations ask you to pay a security deposit whenever you signal a contract together. Through your instalments promptly, it is possible to boost your credit history to get the deposit that you repaid.
Methods like these will help you restore your credit and learn how to withstand the temptations of effortless money. Credit repair just isn’t simple or fun, nonetheless it can be a learning experience. If you have conquered your individual credit crisis it is possible to hold your face large and get confident of avoiding such issues within the times forward.