Finding Debt Solutions

Credit Reports And You

Credit reports are often regarded with dread, especially by those who have entered turbulent financial waters. But reality is never your enemy, even when it is unpleasant. In order to promote financial health, and resolve any debt problems you may have, it’s essential to have the best information possible about your credit status. That information is found – both by the lender and, more importantly, by you – in your credit reports.

Three Organizations, Three Reports

Those reports are maintained – at least in the U.S. – chiefly by the three major credit reporting agencies: Equifax (PO Box 740241, Atlanta, GA 30374; www.equifax.com), Experian (PO Box 2002, Allen TX  75013, www.experian.com) and TransUnion (PO Box 2000, Chester, PA 19022; www.transunion.com).

Contents Of A Credit Report

The reports contain a multi-year history of your credit cards, home loans and other debt. They also record any late payments that occurred and how late they were, 30-day past due, 60-day past due, etc. The reports will list any current and old address, and often your phone number and social security number.

Available To Many Who Ask

That information is readily available to any qualified party – a bank, a mortgage lender, a credit card issuing company and certain others during legal proceedings. But, though the companies all genuinely try to maintain accurate records, the reports may contain errors.

Important Information May Be Incorrect

They may list loans as active that have been paid off. They may list current credit cards you canceled long ago. And, they may fail to list payments made to make up overdue amounts. Often, this isn’t sloppiness on the part of the credit bureaus but simply a reflection of timing and other common human errors in keeping records. The world may be computerized, but those databases still don’t always communicate effectively between companies using different systems.

Get Your Own Copies And Review Them

The only thing an individual can do about this – out of self-protection, if nothing else – is to get copies from all three agencies and review them thoroughly. Make a note of any errors, establish proof of the error, then send a registered letter with the proof to the agency asking them to correct the data.

Thanks to recent legislation, you can obtain one free copy of your credit report per year. There are numerous ways to do that by filling out a form online or calling. One way is to go to: annualcreditreport.com.

This Information Can Be Used Advantageously

On a more positive note, having the information at your fingertips allows you to develop a debt-free plan for your future. Understanding your past credit history is the first step in creating that plan.

Review your history and note any current overdue amounts. Clear those up first, as quickly as possible. One method is to pay off any smaller outstanding amounts first. That frees up funds to be used on the next larger outstanding amount. Working your way up, you will eventually begin to see light at the end of the tunnel.

More on Credit Reports

• Good Credit Report Score. Your credit report score determines not only the rates and conditions of loans, but whether or not you can even get them. Is yours too low? What can be done to fix it?
• Average Credit Report Score. Three different credit reports make up your credit score. How are they made, what’s part of them and what impact do they have on you?
• Charge Off On Credit Report. Charge offs are when credit card companies declare debts unlikely to be collected. What does this mean, and what does it do to your credit score?
• Bad Credit History Repair. Credit report scores can be repaired through a simple process you can perform yourself from at home. Find out how to repair your credit.