Credit Reports, What You Need To Know!

Have you ever seen your credit report? Your employer probably saw it before hiring you. The landlord likely considered it before accepting you as a tenant. And long distance telephone carriers even look at it before giving you a long distance line. And youve never even seen your own credit report? If your answer in no, youre not alone. In fact, according to a recent study, less than 20% of all Americans have ever seen their credit report. Most people become concerned about their credit report only when they are denied credit. By that time, its usually too late.

You should take a look at your credit report at least once every 2 years. This way, information is still accessible and verifiable in the case that you may need to have it corrected. You should also look at your credit report before applying for any credit. This may help to avoid any unwelcome surprises.Allowing you to look at exactly what your loan manager will look at, can prepare you for any questions

If youve never had credit problems, you might think that you need not be concerned. But according to a recent government study, one out of every four credit reports contain errors, one out of every six contain errors that could cause denial of credit. Sometimes Credit reports are accidentally combined, and people with similar names or social security numbers actually share a credit report! Its not at all uncommon for family members to have overlapping data. Nor is it uncommon for a credit card or loan company to accidentally list you as having missed a payment.

Have you ever received a late notice or collection letter on something that you already have paid? Im sure you made a phone call or two and straightened it out immediately. But what about the monthly report to the credit bureau? You cant help but wonder if the mistake got corrected on that report. The only way to find out what is actually on your credit report is to look at it for yourself. When you do, you may be surprised to see that your credit record looks quit different than you expected. The past and present credit accounts that you expected to see, may not be listed, and still other accounts that you did not expect to see might be listed.

This is not at all uncommon because creditors are not required to report our account to a credit bureau. They are free to report only the information that they see fit. And they can report that information to whichever credit bureau they prefer. Some creditors report all credit account transactions to all of the large credit bureaus. Some creditors prefer to report an account only when it becomes delinquent. And still other creditors do not report to a credit bureau at all.This situation may provide for a pleasant surprise, if a past loan that became delinquent doesnt show up on your report. It may also provide a very unpleasant surprise, if something you thought unimportant was reported. Like maybe a non paid magazine subscription, or even worse, someone elses delinquent account record. The only way to find out what is on your report is to see a copy for yourself!

If you have bad marks on your credit report because of some past credit difficulties, Im sure youre wondering about credit repair. The advertisements tell you its possible, the banks and credit bureaus tell you its not! Yes, it is possible to remove bad marks from your credit report even though the information is true. Yes, legally! However, beware of credit repair clinics and agencies that make exaggerated claims and charge exorbitant prices.

Where to go for help.

Consumer Credit Counseling Service.
A Non-Profit organization offering free or low cost financial counseling to help solve your financial problems. Services include, budget counseling, debt consolidation, and dealing with creditors. Over 600 offices nation wide. For the office near you call 1(800)388-2227

Debtors Anonymous
A self help organization based on the same basic principles as Alcoholics Anonymous.
For the phone number of your local chapter, call (212)297-6102

QUESTIONS AND ANSWERS

What does it mean to have good or bad credit?

Having good credit means that according to your past creditors, your record (credit report) is clean. You made payments, and paid off your past debts satisfactorily. Having bad credit is just the opposite. Your record (credit report) shows that you have not paid off your past debts as agreed. This could mean late payments, collections, non-pays etc. This information is held at the