The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies  Equifax, Experian, and TransUnion  to provide you with a free copy of your credit report, at your request, once every 12 months. The FCRA promotes the accuracy and privacy of information in the files of the nations consumer reporting companies. The Federal Trade Commission (FTC), the nations consumer protection agency, enforces the FCRA with respect to consumer reporting companies.

A credit report includes information on where you live, how you pay your bills, and whether youve been sued or arrested, or have filed for bankruptcy. Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.

Here are the details about your rights under the FCRA and the Fair and Accurate Credit Transactions (FACT) Act, which established the free annual credit report program.

Q: How do I order my free report?

A: The three nationwide consumer reporting companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report.

To order, visit annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The form is on the back of this brochure; or you can print it from ftc.gov/credit. Do not contact the three nationwide consumer reporting companies individually. They are providing free annual credit reports only through annualcreditreport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

You may order your reports from each of the three nationwide consumer reporting companies at the same time, or you can order your report from each of the companies one at a time. The law allows you to order one free copy of your report from each of the nationwide consumer reporting companies every 12 months.

A Warning About ImposterWebsites

Only one website is authorized to fill orders for the free annual credit report you are entitled to under law annualcreditreport.com. Other websites that claim to offer free credit reports, free credit scores, or free credit monitoring are not part of the legally mandated free annual credit report program. In some cases, the free product comes with strings attached. For example, some sites sign you up for a supposedly freeservice that converts to one you have to pay for after a trial period. If you dont cancel during the trial period, you may be unwittingly agreeing to let the company start charging fees to your credit card.

Some imposter sites use terms like free report in their names; others have URLs that purposely misspell annualcreditreport.com in the hope that you will mistype the name of the official site. Some of these impostersites direct you to other sites that try to sell you something or collect your personal information.

Annualcreditreport.com and the nationwide consumer reporting companies will not send you an email asking for your personal information. If you get an email, see a pop-up ad, or get a phone call from someone claiming to be from annualcreditreport.com or any of the three nationwide consumer reporting companies, do not reply or click on any link in the message. Its probably a scam. Forward any such email to the FTC at spam@uce.gov.

Q: What information do I need to provide to get my free report?

A: You need to provide your name, address, Social Security number, and date of birth. If you have moved in the last two years, you may have to provide your previous address. To maintain the security of your file, each nationwide consumer reporting company may ask you for some information that only you would know, like the amount of your monthly mortgage payment. Each company may ask you for different information because the information each has in your file may come from different sources.

Q: Why do I want a copy of my credit report?

A: Your credit report has information that affects whether you can get a loan and how much you will have to pay to borrow money. You want a copy of your credit report to:

• make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job.
• help guard against identity theft. Thats when someone uses your personal information  like your name, your Social Security number, or your credit card number  to commit fraud. Identity thieves may use your information to open a new credit card account in your name. Then, when they don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.

Q: How long does it take to get my report after I order it?

A: If you request your report online at annualcreditreport.com, you should be able to access it immediately. If you order your report by calling toll-free 1-877-322-8228, your report will be processed and mailed to you within 15 days. If you order your report by mail using the Annual Credit Report Request Form, your request will be processed and mailed to you within 15 days of receipt.

Whether you order your report online, by phone, or by mail, it may take longer to receive your report if the nationwide consumer reporting company needs more information to verify your identity.

There also may be times when the nationwide consumer reporting companies receive a high volume of requests for credit reports. If that happens, you may be asked to re-submit your request. Or, you may be told that your report will be mailed to you sometime after 15 days from your request. If either of these events occurs, the nationwide consumer reporting companies will let you know.

Q: Are there any other situations where I might be eligible for a free report?

A: Under federal law, youre entitled to a free report if a company takes adverse action against you, such as denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. Youre also entitled to one free report a year if youre unemployed and plan to look for a job within 60 days; if youre on welfare; or if your report is inaccurate because of fraud, including identity theft. Otherwise, a consumer reporting company may charge you up to $10.50 for another copy of your report within a
12-month period.

To buy a copy of your report, contact:

• Equifax:1-800-685-1111; equifax.com
• Experian: 1-888-397-3742; experian.com
• TransUnion: 1-800-916-8800; transunion.com

Under state law, consumers in Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey, and Vermont already have free access to their credit reports.

Q: Should I order a report from each of the three nationwide consumer reporting companies?

A: Its up to you. Because nationwide consumer reporting companies get their information from different sources, the information in your report from one company may not reflect all, or the same, information in your reports from the other two companies. Thats not to say that the information in any of your reports is necessarily inaccurate; it just may be different.

Q: Should I order my reports from all three of the nationwide consumer reporting companies at the same time?

A: You may order one, two, or all three reports at the same time, or you may stagger your requests. Its your choice. Some financial advisors say staggering your requests during a 12-month period may be a good way to keep an eye on the accuracy and completeness of the information in your reports.

Q: What if I find errors either inaccuracies or incomplete information  in my credit report?

A: Under the FCRA, both the consumer report­ing company and the information provider (that is, the person, company, or organization that provides information about you to a consumer reporting company) are responsible for correcting inaccurate or incomplete information in your report. To take full advantage of your rights under this law, contact the consumer reporting company and the information provider.

1. Tell the consumer reporting company, in writing, what information you think is inaccurate.Consumer reporting companies must investigate the items in question  usually within 30 days unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the consumer reporting company, it must investigate, review the relevant information, and report the results back to the consumer reporting company. If the information provider finds the disputed information is inaccurate, it must notify all three nationwide consumer reporting companies so they can correct the information in your file. When the investigation is complete, the consumer reporting company must give you the written results and a free copy of your report if the dispute results in a change. (This free report does not count as your annual free report under the FACT Act.) If an item is changed or deleted, the consumer reporting company cannot put the disputed information back in your file unless the information provider verifies that it is accurate and complete. The consumer reporting company also must send you written notice that includes the name, address, and phone number of the information provider.
2. Tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if you are correct  that is, if the information is found to be inaccurate the information provider may not report it again.

Q: What can I do if the consumer reporting company or information provider wont correct the information I dispute?

A: If an investigation doesnt resolve your dispute with the consumer reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the consumer reporting company to provide your state­ment to anyone who received a copy of your report in the recent past. You can expect to pay a fee for this service.

If you tell the information provider that you dispute an item, a notice of your dispute must be included any time the information provider reports the item to a consumer reporting company.

Q: How long can a consumer reporting company report negative information?

A: A consumer reporting company can report most accurate negative information for seven years and bankruptcy information for 10 years. There is no time limit on reporting information about crimi­nal convictions; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because youve applied for more than $150,000 worth of credit or life insurance. Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, which­ever is longer.

Q: Can anyone else can get a copy of my credit report?

A: The FCRA specifies who can access your credit report. Creditors, insurers, employers, and other businesses that use the information in your report to evaluate your applications for credit, insurance, em­ployment, or renting a home are among those that have a legal right to access your report.

Q: Can my employer get my credit report?

A: Your employer can get a copy of your credit report only if you agree. A consumer reporting company may not provide information about you to your employer, or to a prospective employer, without your written consent.

For More Information

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To learn more about credit issues and protecting your personal information, visit ftc.gov/credit.

To file a complaint or to get free information on other consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Posted under Useful Info

You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services. They all make the same claims:

• Credit problems? No problem!
• We can erase your bad credit 100% guaranteed.
• Create a new credit identity legally.
• We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!

Do yourself a favor and save some money, too. Dont believe these statements. Only time, a conscious effort, and a personal debt repayment plan will improve your credit report.
This article explains how you can improve your creditworthiness and gives legitimate resources for low or no-cost help.

The Scam
Everyday, companies nationwide appeal to consumers with poor credit histories. They promise, for a fee, to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, they cant deliver. After you pay them hundreds or thousands of dollars in fees, these companies do nothing to improve your credit report; most simply vanish with your money.

The Warning Signs
If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam:

• Companies that want you to pay for credit repair services before they provide any services.
• Companies that do not tell you your legal rights and what you can do for yourself for free.
• Companies that recommend that you not contact a credit reporting company directly.
• Companies that suggest that you try to invent a new credit identity ” and then, a new credit report ” by applying for an Employer Identification Number to use instead of your Social Security number.
• Companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.

You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. Its a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.

Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.

Posted under Useful Info

Love ‘em, hate ‘em, it’s the same old story. Credit cards themselves are not bad. There are advantages and disadvantages. Lets take a look at some of those advantages…

1. Access to money

By being able to use your credit card you can actually save money! Here’s an example: My dentist gives a 5% discount if you pay at the time of service.

Because I can pay with my credit card I get the 5%. Even if I paid interest on this amount, at 10% APR I can still take 6 months to pay it back and break even!

2. Protection from merchants

When you buy stuff with your credit card you are very protected. For example, if a merchant won’t give you a refund for a return you can always contact your credit card bank and dispute the charge. The bank will probably decide in your favor and chargeback the merchant.The merchant would have to take you to court to fight further.

On the other hand, if you paid cash instead of using your credit you would have to pursue the matter in court with the merchant.

3. A chance to build a positive credit history.

You must have a good credit history in today’s society. Many people look at your credit report to judge you so it’s vital that your report is the best it can be!

Potential employers, insurance companies, mortgage companies, and many more will try to get an idea of your character from looking at this information. Having a credit card and using it wisely will help create that positive history.

4. Other perks and cash back rewards

There are many cards that actually pay you to use them. They provide a cash-back bonus or other reward. If you can take advantage of that reward then you can actually save money.

5. Warranty protection

Some credit cards will extend the warranty of an item purchased with that card. Contact your credit card companies to learn about these benefits so you know which card to use when purchasing that new computer.

6. Money in an emergency

If your car breaks down late at night you may not be able to get an ATM machine or your personal bank. However, by having a credit card you’ll have access to the money you’ll need in these tense situations.

7. Better deals than other loans

So many banks, so few good customers. They are fighting for our business! You may be able to get better rates from your credit card bank than from a personal loan or auto loan. Right now I have four, count ‘em, four banks that are offering me 0% until near the end of this year!

8. No chance of losing cash

If you lose your wallet you’ve lost your cash. If you have $100 in there, it’s gone. If you carry little cash and use credit, then, if you ever lose it you can call the credit card bank and report the card lost and you won’t owe a dime. The bank loses the money, not you, HA HA!

9. Better than a debit card If someone steals your debit card information they may be able to steal money from your accounts. If that happens, your checks will bounce and you’ll have to deal with each place you wrote a check too plus the bouncing fees from your bank. You’ll have to fight to get your money back.

If someone steals your credit card then you would call the credit card bank and tell them cancel the account and you wouldn’t be responsible for the charges that you didn’t make. That’s the risk banks take for the profit they make. Hey, that rhymes.

10. Customer service 24/7

Most credit card banks have reps there 24/7. That’s great because you can deal with them at your convenience. If you pay your bill late Thursday night, and you have a question, you can talk to someone. Granted that you’ll be dealing with their voice menu for a while before you speak to a human, but you will eventually speak to one

Posted under Useful Info

NEW YORK (CNN/Money) - Twenty-five percent of credit reports contain errors serious enough to deny consumers access to credit, favorable loan rates and in some cases a job, a new study said Thursday.

“It is outrageous that inaccurate credit reports could damage one in four consumer’s ability to buy a home, rent an apartment, obtain credit, open a bank account, or even get a job,” Ed Mierzwinski, director of consumer programs at consumer group PIRG, said in a statement.

The report defined “serious” errors as those that could result in an automatic denial of credit, such as incorrectly marking accounts as delinquent or in collection.

Some of the key findings in the study conducted by PIRG include:

Fifty-four percent of the credit reports sampled contained personal information that was misspelled, outdated or belonged to a stranger. One report, for example, listed a consumer’s birth year as 1952, when she was actually born in 1975.

Thirty-percent of those reports contained credit accounts that had been closed by the consumer but were still listed as open. Incorrectly listing closed accounts as open gives creditors the impression a consumer’s credit is over-extended.

Twenty-two percent of the reports had the same mortgage or loan listed twice. Again, this gives creditors the impression a person has over-extended his credit, or is delinquent on one loan.

In all, seventy-nine percent of the credit reports sampled contained errors of some kind.

A spokesperson for a credit industry trade group disputed the claims, saying that credit decisions are based on a consumer’s overall credit report and that one negative claim may not have significant impact on the total score.

He also noted that under federal laws credit reporting errors must be corrected within 30 days.

“I don’t think there ought to be an error in any credit, but we update credit files 4.5 billion times a month,” said Norm Magnuson, vice president of public affairs for the Consumer Data Industry Association. “When there is an error, it is our obligation to correct it, which in 80 percent of the cases is done in 10 working days.”

PIRG recommends that consumers examine their credit reports at least once a year, noting that the three major credit bureaus– Equifax, Experian, and TransUnion–maintain files on nearly 90 percent of all American adults.

The report also took aim at the Fair and Accurate Credit Transactions Act (FAIR Act) of 2003, which grants consumers the right to request a free credit report each year. The FAIR Act, finalized June 4, 2004, allows credit agencies to gradually roll out the program over a nine-month period, beginning in December for those who live on the West Coast before ending on the East Coast in September 2005.

California, Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey, and Vermont already have laws requiring credit agencies to provide their residents with one free report a year.

PIRG’s report is based on 197 surveys received from 154 adults in 30 states. PIRG collected 73 surveys from Equifax, 60 from Experian, and 40 from TransUnion. Five of the responses did not indicate the credit bureau and 19 indicated the respondent ordered a report from all three bureaus.

Posted under Useful Info

While companies that develop credit scoring systems do not disclose the exact formula for rating a score, they do show what factors have a major impact on the score.

• Payment History Payment history typically is a
  significant factor. Your score will be affected negatively, if your credit report indicated you have paid bills late or have been referred to collections.
• Outstanding Debt Many credit scoring models evaluate the amount of debt you have compared to your credit limits.  Balances above 50% of your credit limits will harm your credit.  It is best to keep balances under 30% of your credit limit.
• Credit Account History Establishing a consistent credit history with creditors indicates less risk. Do not opt to close accounts, if you are considering taking out new loans.
• Types of Credit A healthy credit profile has a
  balanced mix of credit accounts and loans.
• New Credit The credit score also takes into account how many accounts have been opened recently, and how many times recent inquiries have been made.
• Length of Credit History Generally, the longer you have had accounts open, the better they appear on your credit score.  Also, there should not be long spans of time between account activity.

What else determines my score?

The Equal Credit Opportunity Act states that a credit scoring system may not use certain characteristics like race, sex, marital status, national origin, or religion as factors. However, creditors are allowed to use age in properly designed scoring systems.  Any scoring system that includes age must give equal treatment to elderly applicants.

If you feel that you have been discriminated against, you should file a complaint with the Federal Trade Commission.

How can I improve my credit score?

These simple steps can help improve your credit report and score:

• Know what is in your credit report and be sure to check it periodically
• Correct inaccurate information in your credit report
• Pay bills consistently on time
• Keep balances on credit card accounts low
• Pay off debt when you are able to do so
• Do not open or apply for several new
  accounts at once

If you are unfamiliar with credit reports and want to know how to read them here is a good sample report that describes each section of the report. This is a free PDF download. You will need Adobe Acrobat Reader which is also free here.

Posted under Useful Info