Welcome to Credit Report Tips

Disputing Credit Report Errors

Consumers should check online credit reports on file with Experian, Equifax, and TransUnion regularly to ensure that the information the reports contain is accurate. The Fair and Accurate Credit Transactions Act, or FACTA as it's called, makes it easier to dispute incorrect information in your credit report. Consumers can deal directly with the credit bureaus to dispute errors. Each of the big three credit bureaus offers online, telephone, and mail channels through which to pursue disputes. You can visit the company Web sites for more information. Regardless of whether you choose to deal with the credit bureau or directly with the business, you should dispute incorrect information in writing, and you should keep copies of everything. And remember, fixing an error at one credit bureau does not mean it will be corrected at the others. If the incorrect information is included in more than one bureau's database, you will need to pursue your dispute with each bureau individually. For more information on how to dispute inaccuracies in your credit report, visit www.privacyrights.org. There are links to government publications and other resources that will help you iron out any problems.

Disputing Incorrect Information on Credit Reports

Reading credit reports can be confusing. Before you assume there is an error, make sure you are interpreting the information correctly. The good news is that you can effectively dispute errors. Keep records of all your telephone conversations and correspondence. Get the name, title, and telephone/extension number of the person with whom you are speaking. All three of the large credit bureaus offer tools to register free online credit report disputes. The Federal Trade Commission (FTC) also offers a publication called “How to Dispute Credit Report Errors” for free on its Web site.

Checking Your Own Credit Report

Not only can you check your own credit reports, you should check them regularly. You can order directly through Equifax, Experian, TransUnion, or any number of online credit report companies. Checking your own credit reports will not negatively impact your credit score. Keep in mind, though, that if you order directly, you will be charged a fee. If you'd rather receive a free credit report, you can order an annual credit report from each of the three big credit bureaus at www.annualcreditreport.com. When you check your credit reports, make sure it is error free. Sometimes information from other individuals can be inserted into the wrong record.

About Credit Reports

A credit report is a compilation of information that serves as a persistent record of how you use, abuse and manage your credit responsibilities. It includes basic information about you, such as your name, address, telephone number, Social Security number, date of birth, and employment history. It also includes information on your credit payment history as well as public information such as tax liens, court judgments, and bankruptcies, if any. Credit reports are used by potential businesses and lenders to help determine your creditworthiness. If your credit report is generally positive, you will most likely qualify for better terms on any credit for which you apply. The federal government recently enacted legislation allowing consumers access to a free credit check once every 12 months from each of the three main credit bureaus. For more information, or to get information on an free instant credit report, visit www.annualcreditreport.com.

About Credit Scores

A credit score is a numeric value that most commonly ranges from 300 to 850 and that is calculated based on a number of different factors. The single-most important factor in determining your credit score is your past repayment history. Credit reporting data is maintained by the credit bureaus on more than 170 million Americans. Credit scores are calculated directly based off current credit data, then subsequently pulled by lenders. A score does not exist until they are ordered by a lender or consumer. Since there can be errors in the information contained in a credit report and the corresponding credit score, personal finance and identity theft experts recommend that you check your credit scores all three credit bureaus at least three to six times a year. Federal law entitles consumers to a free credit report and score from Equifax, Experian, and TransUnion once every 12 months.

Credit Cards and Identity Theft

Credit card companies recognize the threat that identity theft poses to consumers and do take steps to protect their customers. For example, many credit card companies monitor usage patterns by consumers. If unusual charges appear on the account, the company may temporarily freeze the account and contact the cardholder to see if the charges are legitimate. Examples of unusual charges include charges at vendors outside the geographic region in which you normally use the card or a big-ticket purchase when you normally use the card for smaller purchases. Most companies also offer other credit card fraud protection services, such as issuing virtual numbers for online purchases. Your credit card company's Web site should include a full description of the identity theft protection services it offers.