If you are over the age of 18, live in the United States and consume products and services, then in some way shape or form there is a credit report about you. There are the 3 big credit bureau who keep track of how we all pay our bills and they evaluate our credit worthiness via technology. They know with whom we have credit card accounts, how we pay the bills and they know all about the loans we take out.
This is because the merchants and banks that we do business with report report credit histories to:
- Trans Union
These 3 are the big record keepers of us and how we use money as consumers.
However, sometimes mistakes can be made in their record keeping or how information is reported to the credit bureau. This happens a lot.
Luckily for us who reside in the USA have some federal laws that protect our rights when it comes to credit reporting.
The Fair Credit Reporting Act is what protects us consumers regarding everything that is reported to our credit files.
The Fair Credit Reporting Act promotes the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies. If your company meets the definition of a “consumer reporting agency,” if you furnish information to CRAs, or if you use that information for certain purposes, you may have obligations under the FCRA.
If the entity that is reporting information inaccurately or if the credit reporting agency is doing the same… then we consumers have the right to dispute that information that is being reported. This is sometimes referred to as credit repair.
Get a Copy of Your Credit Report
The most common times when someone discovers that something could be wrong with their credit report is either when they apply for credit and get a denial or by just checking by using https://www.freecreditreport.com for a free annual credit check. (credit scores not provided though)
So if you discover that something is not right with your credit report and notice inaccurate information, then you can dispute that information and the credit bureaus have 30 days to investigate your dispute. Once their investigation is complete, if it is discover the info is incorrect, regardless of what is being reported, they will delete it.
The deletions of negative reported credit information can increase your credit score and purchasing power.
Sometimes depending on how well the economy is going there can be times when it just might not be easy for someone to maintain a good credit rating. So even the little things like being one payment behind on a credit card could affect your credit score. The same goes with collection agencies, even if it is a past due bill being report for a small amount like $100 could cause a big drop in your credit scores. Further it will damper your ability to apply and obtain new credit, loans or a mortgage. Several blemishes on a credit report will certainly cause low credit scores and denial of credit.
What Happens with a Bad Credit Rating?
On a credit report information that is being negatively reported can cause higher interest rates on loans and credit cards and some times additional fees for the establishment of credit. Being unable to buy what you may need could also be a problem if you are denied credit because of a negative credit rating.
Inaccurate Information Can Be Removed from Credit Report
When the time comes to getting a credit report cleaned up there are a couple of ways to do it. You can try to do it your self and learn the laws regarding the Fair Credit Reporting act and initiate the disputes yourself. Or you can use the service of a credit repair specialist, since they already have the knowledge and experience to challenge negative credit items. Credit repair companies do charge a fee for their service, usually a monthly fee.