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Managing Finances for a Better Credit
Rating
In the world of finances it is all about managing
debt to maximize one’s buying power. Since a
consumer’s credit score has a direct correlation on
any financing or loan authorization, reviewing the
accuracy of a credit report is a consumer savvy.
Consequently, managing one’s personal finances for a
better credit rating is critical.
Did you know that when financial institutions
consider authorizing loan approval, they review your
payment history? Even if you were unemployed when
you were inundated with medical bills, the balance
will appear on the credit report.
FACT: Over thirty-five percent of American consumers
impaired with a low credit score -- due to expensive
hospital and medical bills.
About Your Credit Report Card
A credit report is very similar to an adult life
quality report card. It details such personal
information as:
* Where a consumer works
* Where the individual resides
* Have you ever been convicted of a crime
* Has the individual ever been involved in a lawsuit
or claim
* How you pay your bills
Credit reports or your report card are kept by
organizations referred to as consumer reporting
agencies (CRAs). These credit bureaus collect,
compile and sell consumers credit documents to
businesses. Banks and lending institutions approve
applications based on credit. Certain insurance
companies and employers evaluate one’s credit before
writing a policy or extending employment.
Subsequently, Americans should always review their
credit score to ensure the information is accurate.
Financial advisors recommend that all consumers
should report any updated, omissions or
inaccuracies. Specifically, for the person planning
to apply for a mortgage, auto loan or other personal
loans (secured or non-secured) an exact truthful
credit report is important. Moreover, the Fair
Credit Reporting Act (FCRA) authorizes consumers the
opportunity to submit corrections.
Another aspect of managing one’s finances with a
better credit score is by checking the accuracy of
information detailed on the credit file.
Nonetheless, it may drastically accelerate the
credit-granting process.
On the other side of the spectrum, consumers who are
denied credit have the right to acquire the
following information:
1. The credit bureau’s name (CRA)
2. The CRAs address and all contact information
3. A copy of a free report within 60 days of a
denial
4. In lieu of fraud, being on welfare or
unemployment, consumers a allowed one complimentary
copy of their credit report
Generally, the cost of a credit report starts at
nine dollars.
Credit Reporting Agencies and Credit Bureaus
There are three major credit bureau agencies (Experian,
Trans Union and Equifax). All agencies may have
different information about a consumer. To compare
and check all your credit files from all the top
agencies, here is their address:
Experian
P.O. Box 2002,
Allen, TX 75013
(888) EXPERIAN (397-3742)
Trans Union
P.O. Box 1000
Chester, PA 19022
(800) 916-8800
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
(800) 685-1111
After you obtain a copy of your credit report, the
first step to managing your finances begins with
noting any discrepancies. Then, protect your rights
under the FCRA Act by contacting the source of the
erroneous information and the credit reporting
agency by writing a letter.
Sample Dispute Letter
Date
(Your Information)
Name
Address
City, State, Zip Code
Complaint/Dispute Department
Name of Credit Reporting Bureau
Address
City, State, Postal Code
To Whom It May Concern:
Attached you will find a copy of a report I
received. The items of dispute are circled on the
attached copy of the report I received.
1.) (Detail the disputed items in a list with the
credit account, name of the creditor the type of
item, such as credit account or judgment etcetera)
This above item is (inaccurate) because (detail what
item is inaccurate or incomplete and why). I am
requesting that the above named item be removed or
corrected (or state the specific change).
Attached you will find copies (describe any
enclosures that depict a record of payments or any
court documents) which demonstrate my position.
Please research this issue and (remove or amend) the
disputed item(s) as soon as possible.
Regards,
Your name
Enclosures: (List what you are enclosing)
Remember to include duplicates (only) of the
documents that corroborate the correction.
Facts about Accurate but Negative Credit Report
Information
There are scenarios where negative information may
be accurate. Unfortunately, there is a general
period of time that the information must remain on a
credit report. Usually, the time limit is seven
months; however the following list details the
exceptions:
1. Any information regarding criminal convictions
may be reported for an unlimited time span.
2. Any credit information provided as a response to
an application for a salary position worth over
$75,000 does not have a time limit.
3. Bankruptcy information can remain on a report up
to ten years or more.
4. All credit information reported as a result of an
application worth over $150,000 of credit or life
insurance does not have a limit.
5. Any unpaid judgments or lawsuits have a credit
report life of seven years or more -- until the
statute of limitations has expired (whichever is
longer).
In summation, despite negative accurate information,
paying your bills on time and correcting any errors
is a good way to manage your finances for a better
credit rating.
This article is the property of
www.greatestautoloan.com, which has been
offering Auto Loan services since 2005. To find
out more visit
www.greatestautoloan.com
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