An area that is often overlooked until it is too late is our credit reports and FICO scores. Here's a suggestion that could head off any potential problems in being approved for a mortgage, refinance or any other type of loan. At least once per year (every six months if possible) click on the link below to be able to arrange a viewing of your combined credit report from the three major Credit Bureaus. Look for reported late items that need to be dealt with as well as whether closed accounts and paid off, auto leases have been removed, etc…. These items lower your FICO scores, which is what lenders look at to determine your credit worthiness.
Order your credit report - http://www.equifax.com/home/
Find out more about Credit Reports and FICO scores - http://www.fool.com/ccc/check/check01.htm
How to Handle Disputes with Credit Bureaus
If you have been denied credit, insurance or employment because of information supplied by a Credit Reporting Agency, the FCRA says the company you applied to must give you the Credit Reporting Agency's name, address and telephone number. If you contact the agency within 60 days of receiving a denial notice, the report is free.
The three major national credit bureaus are:
Equifax
P.O Box 740241
Atlanta, GA 30374
(800) 685-1111
Experian
P.O Box 2002
Allen, Texas 75013
(888) 397-3742
Trans Union
P.O. Box 1000
Chester, PA 19022
(800) 916-8800
If an error shows up on your credit report, both the Credit Reporting Agency and the organization that provided the information to the agency, such as a bank or credit card company, have responsibilities for correcting inaccurate or incomplete information in your report. Your job is to tell the Credit Reporting Agency in writing what information you believe to be inaccurate. Include copies (NOT originals) of documents that support your position.
In addition to including your name and address, your letter should clearly identify each item in your report that you are disputing. State the facts and explain why you dispute the information, and request a deletion or a correction. You may want to enclose a copy of the report with the items in question circled. Send your letter by certified mail, return receipt requested, so you can document what the Credit Reporting Agency received. Keep copies of your dispute letter and enclosures.
The Credit Reporting Agency must reinvestigate the items in question within 30 days.
If the creditor finds the disputed information to be inaccurate, it must notify all nationwide Credit Reporting Agencies so they can correct the information in your file.
When the reinvestigation is complete, the Credit Reporting Agency must give you the written results as well as a free copy of your report if the dispute results in a change. Also if you request, the Credit Reporting Agency must send notices of correction to anyone who received your report in the past six months.
Below is a sample letter – feel free to use it.
Date
Your Full Name
Address
City, State ZIP
Date of Birth January 1, 2000
Telephone (000) 000-0000
Name of Credit Reporting Agency
Address
City, State ZIP
Dear Sir or Madam:
I am writing to dispute an item in my credit report. The following account status should be updated. My credit report indicates that I have made late payments or that the account is in default. I have never missed payments or made late payments on this account.
Company Name: ABC
Account Number: 123
Account Status shown on credit report: Status (paid as agreed, 30 days late, etc )
I have enclosed a copy of my credit report with this item circled.
Please investigate this error immediately, and update my credit report accordingly. Please send me a copy of your investigation results and an updated copy of my credit report.
Sincerely,
Your Signature
Your Name
