Free Credit Report

Know Your Credit Score

April 5, 2018 By Twila VanLeer

Your credit score is an essential facet of your personal finances. Even so, a great number of people don’t ever know what their credit score is or how to affect it in their favor.

It makes a difference. Your credit score is one of the factors that lenders look at when they consider whether to loan you money for a home or other big-ticket item. A lower score could mean a higher interest rate or otherwise affect the mortgage agreement. Your goal should be to have a score above 760.

So find out what your score is and then apply these five steps to upgrade:

• Know your risks. You can learn what your current credit report contains by contacting one of the three main credit reporting agencies, TransUnion, Equifax and Experian. Once a year they are obligated to provide a free report. It won’t include your overall score and you usually will have to pay a fee to see that bottom line. Usually, the score will come with a list of risk factors. Study them as a starting point for improvement. There can be as many as 300 risk factors. If you choose not to pay one of the reporting agencies for a score, many credit card companies will include it on statements and there are third-party websites that provide a simulated score. They include credit.com and creditkarma. Their scores may not exactly match those of the reporting companies, but it is close enough to set you on a correction course.

• Pay your bills on time and every time. The biggest factor in determining your credit score is how faithfully you pay your bills. Obviously, no potential lender wants to hand its resources to someone who has a patchy record of repaying. Even a few days late matter. A single missed payment can drop your score by 100 to 300 points. Start by refusing to allow yourself to add to your debt. Charge only what you can afford to pay off every month in full.

• Manage the debt you have. Keep your balances low to build your credit score. Debt utilization – how much of your available credit you actually use is an important part of how you score. Your balance should never be more than 30 percent of the credit limit on any single charge card or on the total of all your cards. If your balance now exceeds that goal, plan to get them paid off as soon as possible. Add as much money as possible on each payment. Decide if you want to concentrate on the smallest balances first or whittle away at those with the highest interest.

• If you don’t have a credit card, open one. A wallet full of credit cards isn’t necessary, but one or two, carefully managed, can help you establish a good score. Don’t just apply without a plan. Know how much credit you need and how you plan to repay it. If you opt not to have a credit card, open a credit account and faithfully pay it. You need some evidence that will get back to the credit reporters to enhance your score.

• Be patient. Good credit is not built in a day. It may take a few months of faithfully paying bills, keeping credit lines tidy and controlling your spending to produce the results you are looking for. But it will all be worth it when you face a mortgage lender across the desk or have other credit requests to make.

Building A Good Credit Score

October 8, 2016 By Twila VanLeer

Use card responsibly and pay each month's bill on time. — Use card responsibly and pay each month’s bill on time.

Building a good credit score doesn’t happen overnight. There are steps you can take to assure good credit from the outset and establish yourself on a positive note. They include:

Credit Reports

Check to see if you have a credit report. You could have established credit without being aware of it. For instance, if you have been authorized to use a family member’s credit, you might have a credit report. It is also possible that you have been a victim of identity theft, and that definitely needs to be cleared up before you start building credit in earnest. WalletHub is one site that offers credit reports and scores that are updated daily. If you find a report under your Social Security number, analyze it and if necessary, dispute errors, fraudulent accounts and negative records related to unauthorized use.

Get A Credit Card

Starting with a clean slate, open a starting credit card. It is usually pretty easy. There are some that don’t charge an annual fee or require you to incur debt as loans do. They report to the major credit bureaus on a monthly basis.

Three options for a starter card include student credit cards, general use cards for people with limited credit and secured credit cards. You have to have an active college or university email address to get a student credit card. A secured card offers the best opportunity to get guaranteed approval without the risk of overspending. The alternative to a starter card is a loan, usually for home, car, student use or other need that requires debt with interest.

Use Your Credit Card For 6 Months

Use the card responsibly for at least six months. That will generate a credit report and score. The score could range from bad to well above average, depending on what you did with the card and how well you paid. This first report is critical, because it puts you under the credit score microscope. Mistakes will be magnified beyond what they would be if you were a seasoned credit user.

Pay Bills On Time

Pay each month’s bill on time and keep your utilization of the card below 30 percent – 10 percent for the best result. Never use all the credit they extend to you. Setting up automatic payments from a deposit account is helpful in meeting these standards. Responsible handling of the initial card will help when you are ready to apply for a higher credit limit.

Study Your Credit Report

When you have a sense of how your initial foray into credit card use went, continue to study your credit report regularly. By looking at all of the components of the report, you can gain a sense of how the system works and be prepared for long-term credit use. You can learn to adjust course if any element of your report seems out of sync.

A responsible journey into the world of credit can set you up for life in what is an important element in ongoing personal finance.

Be Wary of Fake Debt Scams

March 28, 2016 By Twila VanLeer

Be wary of bill collectors claiming you owe them money.

When a thief gets your credit card info and runs up a huge debt, who is responsible for paying? Some scammers are making an art out of trying to get the money from the card holder and there are steps you can take to protect yourself. The elderly are particularly vulnerable since they tend to be less savvy about electronic finance issues.

One unfortunate retirement-age woman found herself being dunned for $8,500 after someone named “David” used her credit information illegally. She received more than 60 calls over a three-week period, often late at night, as she was hassled to pay the debt. The harassment didn’t end until she hired a lawyer.

The Consumer Financial Protection Bureau (CFPB) reports that 8,700 similar complaints were filed with the agency over a 15-month period, half from elderly persons who reported unrelenting attempts to collect money they didn’t owe.

In the period from July 2013 to December 2014, the agency received overall 110,000 complaints regarding debt collection. The Federal Trade Commission lists such complaints as its most consistent industry problem.

The debt collectors report they are trying to collect some $756 billion in debt. It isn’t possible to estimate how much of that staggering total involves “false debt” claims. But based on complaints by those 62 and older, there are several identifiable tactics that collectors use to weasel money not owed from the elderly, according to an AARP magazine article. They include:

Common debt collector scams:

Threats to garnish Social Security or veterans’ benefits if the person doesn’t pay the claimed “debt.” CFPB experts say this is not possible. Garnishees from these government sources are only possible for delinquent state or federal debt such as unpaid taxes, student loans or government-backed mortgages. Alimony or child support payments also can be withheld from Social Security payments, but Supplemental Security Income benefits cannot be garnished due to any debt.

Pressure to pay medical bills that supposedly were generated by a late spouse. Widows are the frequent victims of this particular scam, which are purposely imposed on them when they are emotionally frail, just learning to cope with their loss. Or the scammers may make repeated attempts to collect debts that they falsely allege were owed by deceased family members.

Frequently repeated calls, offensive language and threats of public shame are among the scammers’ arsenal to intimidate so-called debtors into paying. The experts stress that persons being subjected to these annoying tactics should not respond under pressure simply to be rid of the annoyance. Verify the debt before even considering payment. Be aware that collectors cannot collect on debt that has expired under statute of limitations provisions. The period ranges from two to 10 years, depending on state laws.

There are instances of mistaken identity in which legitimate collectors simply have their information wrong. In some instances, they are able to collect from the wrong party because those being dunned are reluctant to provide identifying information over the phone for fear of identity theft. But if you think you may have wrongfully paid a debt under such circumstances, contact the CFPB and your state’s attorney general to report your concerns.

To protect yourself against fake collectors, follow these steps:

Ask for specific information about the alleged debt. If the collector fails to respond, you can assume it is a scam. Visit go.usa.gov/Fsge for information about bogus collectors.

Keep close tabs on your credit transactions. You are entitled to three annual free reports from the three major credit reporting firms. Visit AnnualCreditReport.com for information on obtaining these reports. Look for unrecognized debt in your name and report discrepancies immediately.

Visit go.usa.gov/FsY3 to get information about alleged debt. Dispute claims that are not correct. You can obtain sample letters from that address that you can use as patterns to report your disputes. Send the information by certified mail and with a “return receipt” to the collector and to the creditor. Copy to the CFPB, the Federal Trade Commission and your state attorney general.

If you are being dunned for alleged credit card debt, insist on written proof, such as statements detailing unpaid charges. If the collector claims medical debt, ask for documents detailing services, dates and names of providers. Cross-check with Medicare and private insurers.

Correcting Your Credit Report

May 31, 2014 By Twila VanLeer

Errors can keep you from qualifying for a home purchase.

What used to be “a brick wall” consumers crashed into when they tried to correct information on their credit reports is falling, Money Magazine reports. Errors on your credit report often influence an individual’s ability to buy a home or make other major financial decisions.

The Consumer Financial Protection Bureau has pushed for easier ways to make corrections in the reports. Three major credit reporting companies, Equifax, Experian and TransUnion, have always been convinced that they need to allow customers to dispute mistakes but now they are making that process streamlined by offering a way for consumers to do it online and in greater detail. The companies have changed their complaint systems in response to the CFPB pressure, the magazine states.

Under the new processes, the reporting agencies are obligated to forward materials provided by the customer to the creditor. If the alleged errors are confirmed, the creditor is obligated to fix the errors with all three of the reporting agencies. In 2011, the agencies received about 8 million complaints about errors in their reports.

To submit disputes online use these addresses:

Trans Union
Equifax
Experian
To receive a free report once a year go to:
Annual Credit Report

You must have the number of your credit report to access these sites.

To expedite the correction of mistakes, contact both the credit bureau and the organization that provided the information to the bureau. Both are obliged under terms of the Fair Credit Reporting Act to correct inaccurate or incomplete information in your report.

Usually after you have reported specific mistakes in your credit report, the credit bureau must investigate within 30 days, unless they consider your complaint frivolous. Include copies of documents that support your complaint, not the originals. It might be well to include a copy of the erroneous report with the information you are contesting clearly identified. State your complaint and add material to support your position. Request that the erroneous material be deleted or corrected. Be sure your complete name and address are included. Make copies of the correspondence and send the letter by certified mail.

Notify the creditor who has received the erroneous report that you are disputing the information and are in touch with the credit bureau. If the provider chooses to correspond with the bureau, he should include a notice of your dispute. Ask for copies of their correspondence. The process takes 30 to 90 days.

Check your credit reports on a regular basis so that you can keep your buying power strong.

How to get your free triple credit report

May 11, 2009 By Sherry Tingley

Getting your credit report from the major three credit reporting agencies, TransUnion, Equifax and Experian is easy to do and something you should put on your to do list if you haven’t done so already.

Tracking your credit is always a good idea. You never know when there have been errors made that will negatively affect you or if there has been activity on your credit cards that shouldn’t be there. Ordering credit reports can help you be aware of your credit power or in some cases your lack of power.

TransUnion Credit Bureau

TransUnion will send your credit report to you for free:

Phone number: (800) 888-4213.

You can actually get a credit score mailed to you by calling 1-866-726-7388.

You can file a credit dispute online if you see any errors.

Equifax Credit Bureau

The easiest way to get your credit report from Equifax is to call them at: 1-877-SCORE-11.

Their address is:

Equifax Information Services LLC
P.O. Box 105314
Atlanta, GA 30348
(866) 224-9235

Experian Credit Bureau

You can order a credit score for $6 by calling 1-888-322-5583.

You can get unlimited access to your credit report at CreditExpert.com

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Experian has corporate headquarters in Dublin, Ireland, and has operational headquarters in Costa Mesa, Calif., and Nottingham, UK. The Group employs approximately 15,500 people in 38 countries worldwide, supporting clients in more than 65 countries around the world. Revenue for the year ended March 31, 2008, was $4 billion.

I thought that was interesting. The other interesting thing about Experian is that it owns hitwise.com. Hitwise “provides insights on how 10 million US Internet users interact with more than 1 million websites, across 165+ industries.”