Correct Credit Report

Credit scoring came into wide use in the 1980s. Your Credit Score affects you every day. Your Credit Score ranks your credit risk in many financial markets. Your HOME, APARTMENT, AUTO, RENTAL/LEASES, EMPLOYMENT AND INSURANCE RATES are being affected by your Credit Score at this moment. "Credit scoring is a system creditors use to help determine whether to give you credit," says the Federal Trade Commission.

MORTGAGE APPLICANTS: When you know your Credit Score you can more carefully consider any loan terms, down payment, rates. Do you know you can shop for better lenders and more favorable terms? All credit terms including your loan interest rate, down payment and other terms can be most favorable to you based on your CORRECTED AND UPDATED Credit Score.

CREDIT REPORT MISTAKES mean lower Credit Scores. Some sources state 80% of credit reports contain errors. Other suggest 30% are erroneous. EQUIFAX, EXPERIAN AND TRANSUNION argue the error rate is less than 1%. Whatever. Population percentages do not describe you. Correct errors on your credit report will ensure accurate data is being read by the credit score system. Only you can define your unique credit situation and GET THE CREDIT SCORE YOU DESERVE.

CORRECTING ERRORS on your credit report assures that you get the CREDIT SCORE YOU DESERVE, that the mortgage loan process will go smoother with less potential credit difficulties, that you may qualify for more credit and that the terms of your credit will be most favorable to you.

My first piece advice when talking about risk scores has nothing to do with the risk score number. The first thing you should do is get a list of the risk factor statements that most affected the score at the time it was calculated.... Many models, many scales and meaningless numbers: There are many, many different models that analyze risk for a wide range of credit decisions. General creditworthiness and bankruptcy risk are two examples. There also are models specific to mortgage lending, auto lending, credit card decisions and other industry-specific and lender-specific requirements.... Inquiries indicate you may have additional debt not yet included in your credit history. If you already are a marginal credit risk, that unseen debt can push you over the edge.... experian.com/ask_max Ask Max credit advice

Credit Inquiries: To learn about credit inquiries and how they may or may not affect your FICO® score.... Will my FICO score drop if I apply for new credit? If it does, it probably won't drop much. If you apply for several credit cards within a short period of time, multiple inquiries will appear on your report. Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on the credit score.... myfico.com/CreditEducation

The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies... Here is a summary of your major rights under the FCRA... You must be told if information in your file has been used against you... Inaccurate, incomplete or unverifiable information must be

removed or corrected, usually within 30 days... You may limit “prescreened” offers of credit and insurance.... ftc.gov/credit

You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail ... Do yourself a favor and save some money, too. Don’t believe these statements. Only time, a conscious effort, and a personal debt repayment plan will improve your credit report ... Even if you don’t have a poor credit history, some financial advisors and consumer advocates suggest you review your credit report periodically ... to make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job. ftc.gov Credit Repair: Self Help May Be Best

... Under the FCRA, both the consumer reporting company and the information provider ... are responsible for correcting inaccurate or incomplete information in your report... Consumer reporting companies must investigate the items in question—usually within 30 days—unless they consider your dispute frivolous.... If an investigation doesn’t resolve your dispute with the consumer reporting company, you can ask that a statement of the dispute be included in your file and in future reports.... many consumer reporting companies will add verifiable accounts for a fee. Federal Trade Commision How to Dispute Credit Report Errors

For years, creditors have been using credit scoring systems to determine if you’d be a good risk for credit cards, auto loans, and mortgages. These days, many more types of businesses — including insurance companies and phone companies — are using credit scores to decide whether to approve you for a loan or service and on what terms... A higher credit score means you are likely less of a risk, and in turn, means you will be more likely to get credit or insurance — or pay less for it... The Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to know how credit scoring works. ftc.gov What is Credit Scoring?

If you are a victim of identity theft, take the following four steps as soon as possible... Place a fraud alert on your credit reports, and review your credit reports... Call and speak with someone in the security or fraud department of each company. Follow up in writing... File a complaint with the Federal Trade Commission... When you go to your local police department to file your report, bring a printed copy of your FTC ID Theft Complaint form, your cover letter, and your supporting documentation... Credit freeze laws vary from state to state. In some states, anyone can freeze their credit file, while in other states, only identity theft victims can. .. a new Social Security number does not necessarily ensure a new credit record because credit bureaus may combine the credit records from your old Social Security number with those from your new Social Security number. ftc.gov Deter, Detect and Defend against identity theft

If you've ever applied for a credit card, a personal loan, or insurance, there's a file about you... Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses with a legitimate need for it... The Federal Trade Commission (FTC), the nation's consumer protection agency, has written this booklet to help explain how to build a better credit report. It has six sections:

Section 1: Explains your rights under the Fair Credit Reporting Act and the Fair Accurate Credit Transactions Act.

Section 2: Tells how you can legally improve your credit report.

Section 3: Offers tips on dealing with debt.

Section 4: Cautions about credit-related scams and how to avoid them.

Section 5: Offers information about identity theft.

Section 6: Lists resources for additional information.

... The Federal Trade Commission enforces a number of credit laws and has free information about them:

The Equal Credit Opportunity Act prohibits the denial of credit because of your sex, race, marital status, religion, national origin, age, or because you receive public assistance. The Fair Credit Reporting Act gives you the right to learn what information is being distributed about you by credit reporting companies. The Truth in Lending Act requires lenders to give you written disclosures of the cost of credit and terms of repayment before you enter into a credit transaction. The Fair Credit Billing Act establishes procedures for resolving billing errors on your credit card accounts. The Fair Debt Collection Practices Act prohibits debt collectors from using unfair or deceptive practices to collect overdue bills that your creditor has forwarded for collection. ftc.gov Building a Better Credit Report

Debt relief deals ‘preying on consumer’s trust’ Many of these 'too-good-to-be-true' offers are run by con artists …With a legitimate credit counselor, there is no right answer for everyone. They sit down with you and give you a free and objective assessment of your financial situation. At Credit Counseling Northwest, they saw 6,000 people last year and found that debt management was the right option for only 19 percent of them. The rest were given a plan to work things out on their own… Ask a lot of questions and get those answers in writing. Find out about the fees. The Consumer Federation of America says you shouldn’t pay more than $50 for the set-up fee and no more than a $25 monthly maintenance fee... Some companies now claim they can negotiate a one-time settlement with all of your creditors that will reduce your principal by as much as 50 to 70 percent. By doing this, they say, your monthly payments will drop dramatically.

“That is virtually impossible under any circumstances,” says Travis Plunkett, Legislative Director of the Consumer Federation of America. That’s why CFA warns consumers not to use debt settlement programs. “They are promising something they can’t deliver,” Plunkett says…

msnbc.msn.com Don't Fall for debt relief scams