Credit is synonymous with American culture. It is actually a godsend, helping you buy your house or car, get an education, and take advantage of special offers and sales. Meanwhile, imprudent use of credit will only leave you cash-strapped. Understanding your legal defense and third-party actions is a start to fixing those issues.
Your credit report
So, one key to a stable financial future is your credit report. The report is used by employers, insurance companies, and potential creditors to get a glimpse of you. Finally, your credit report is so important that laws protect you from having incorrect information reported about you.
Request your credit report in the following way:
If your credit application is declined, you can obtain a copy of the report to verify that all information has been accurately reported. The name of the credit reporting agency that issued the report used to justify your denial in writing. You have a right to decide which one to choose. State law allows you to receive a free credit report from the agency, prepared for any given creditor, if the application is made within sixty days of denial. Just so you know, laws change and are different in every state, so pleasemake sure to do your research.
You also are entitled to a credit report at no cost once every calendar year, regardless of whether or not you were denied credit. Check to ask for a copy every year, so your report remains clean from bias.
Fixing Your Credit Report
If any of the information in your credit report is wrong, you can dispute it with a credit reporting agency. Within 30 business days after you alert a CRA of your credit dispute, the agency must investigate by asking the creditor to review its records unless it deems that something in your denial request is just not right. The credit bureau must correct any unconfirmed, incorrect, and error info.
Furthermore, you should know that bad credit information older than seven years may not be on your report. Start with the introductory rule. There are a few exceptions to this, and most of you are probably aware that bankruptcy may be reported for up to ten years.
If you disagree with the outcome of a credit bureau investigation about an error, you have the right to write a brief statement in your file explaining how or why it is wrong. If you enclose the credit showing the agency a small shielding statement, it will attach that assertion to your account whenever you submit it for application.
If you have credit problems:
Negative information that is accurately reported must stay on your credit file for a set amount of time, often seven years. This information includes late payments, bankruptcy, liens, and accounts given to a collection agency.
Having negative information in your files does not necessarily mean you will be refused open credit. Creditors look at your credit report differently.
Credit repair clinics promise to clean up or fix your credit record for a fee. Typically, these clinics cannot have accurate information removed or changed on your credit report. You can do it yourself, but a consumer reporting agency is not authorized to charge you for removing inaccurate information from your credit report or restoring lost points on an aging disputed account that caused actual harm.
How to Cancel Junk Mail — Credit Card Edition
You can remove your name and address from pre-screening by the credit reporting agencies — companies that allow businesses to look at a summary of their clerk reports to see if they will offer you a card. One example of this is pre-screening, as in the case where you get a credit card application from Capital One with “You’ve been Pre-Approved” written across the top. You can now “opt out” of having your credit report pre-screened by calling 1-888-5 OPT-OUT.
While it will be impossible to stem the tide of all your junk mail, this step will end many offers from companies that dink into credit communication layers.
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