Credit reports disputes contain information related to the concerning person’s address, bill payment methods, parole history or the fact, whether he or she has filed for bankruptcy or not. The credit report bureaus sell these details and information to insurers, creditors, businesses, employers and others who might make use of the information for evaluating the person’s application for employment, insurance, renting a home or credit.
FCRA or federal Fair Credit Reporting Act aids in the promotion of privacy and accuracy of such information in the files of credit reporting companies of the nation.
The country’s 3 largest agencies of credit reporting under the state and federal law, will require maintaining accuracy of records and information on consumers and their credit history. The 3 top agencies are Experian, Transunion and Equifax. The information present in these files, also called credit report, are usable for determining whether credit and loan application of a consumer is acceptable by a creditor or not, as well as, the value of interest rates.
Incomplete, outdated, disputed and inaccurate information of a consumer’s credit report will be considered as a violation of the Fair Credit Reporting Act (FCRA). A consumer can also sue a creditor or a credit bureau for such a violation and get the necessary compensation from the person or agency.
Why does a consumer lawyer suggest periodical review of credit report?
A consumer lawyer, as well as, financial advisors suggests consumers to review their credit report on a periodical basis, because of the following:
– The contained information will affect your loan acquiring status and the amount of money you might have to pay in order to take the loan.
– In order to ensure accuracy of the information and also the fact that it is updated and complete prior to the loan application process, especially, if you plan to purchase insurance, car, house or even for a job application process.
– In order to safeguard against any kind of identity theft. Many imposters and scammers make use of other personal information for committing frauds. Such inaccuracy will cause a barrier in the path of getting insurances, credit or a job.
Why it is important to improve your credit score?
Low credit score will only put a bad light on your financial standings, especially in the process of credit application. If you are planning to get a car loan, a new home mortgage or even a personal loan, your low credit score will hamper the chances of getting through the loan acquirement process.
You can improve your credit through certain ways and means. Before you go ahead with any of the methods, you should remember that credit score reports of yours are easily accessible by credit card companies, banks and lending agencies. They will decide your request status on the dependence of your report only availed from credit reporting agencies.
Why is it important to dispute credit report errors?
If you notice any error in your credit report, you should immediately file a credit report dispute before they get circulated in many institutions. Follow the steps given below:
- First and foremost, you will have to get a copy of the report from the 3 top reporting agencies. Checkout every detail and information thoroughly.
- Errors and omissions, irrespective of their importance, should not be taken lightly or overlooked.
- When you file a credit report dispute, keep important documents in their right order. Send copies of the same to the agencies and ensure they are corrected. Everything must be maintained in written documents, for example, change of address, inclusion of social security number etc. You can consult with your consumer lawyer and avail the necessary assistance and guidance in the process of a credit report dispute.
- A letter of dispute sent to the agencies is not enough. As a consumer, you will also have to check out whether the top 3 agencies have taken any sort of tangible action within 30 days on your complaint or not. The agencies will require communicating all the details in a written document. If they fail to do so, send them a written reminder. If the written reminder does not work, you will have to take the necessary legal action.
Who all are allowed to checkout a credit report of a consumer?
Credit reports are sensitive sources of information, containing personal information of consumers. The reports can be provided by the Credit bureau to:
– Lenders from whom consumers are seeking credits
– Lenders who have granted credits to the consumers
– Cell phone, telephone, as well as, utility companies that might provide services to consumers
– Insurance companies
– Consumer’s employer
– Government agencies who are solely responsible for reviewing the concerning consumer’s financial status
If you find errors in your credit report, you can file a credit report dispute, with the help of your consumer lawyer. You can request the deletion or correction of the concerning information. In order to do so, you will first have to get in touch with the credit bureau or the person who provided wrong information to the bureau itself.
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