Taking Control of Your Credit
by Mona Sestert on February 1st, 2009If you want to take control of your financial life, reviewing your credit report is a good place to start. To ignore this document is to leave the state of your credit in the hands of strangers. Your credit report defines how lenders, creditors, insurance companies and even employers view your relationship with money.
In order to get the most accurate view of your credit, it’s important to know where to find your credit report. There are three national credit bureaus-Equifax, Trans Union and Experian, and a multitude of local credit reporting agencies who may be maintaining a credit file on you. The Fair Credit Reporting Act entitles you to a free copy of your credit report from Equifax, Trans Union and Experian once every 12 months. Visit annualcreditreport.com or call 1-877-322-8228 to obtain your report. You can find local agencies by consulting your local yellow pages. You will have to contact each agency individually to inquire as to whether they keep a file on you and a copy of their report can normally be purchased for $8.00 or less, depending upon your location. All credit reports are not created equal. Each agency uses its own methods and resources for gathering information. To get a complete picture, obtain your free annual credit reports, and at least one local agency report.
Potential and current creditors and lenders, landlords, insurers, collection agencies, government agencies and potential employers may see your credit report. Any party who denies you credit based upon your credit report is obligated to disclose to you the name, address and phone number of the reporting agency that provided the report. You then may request a free copy of your credit report from the named agency, within 60 days of the creditor’s notice.
When you get your credit reports, you need to read all the information thoroughly and verify that all personal information, public records and reported accounts (positive and negative) is correct. If you find incorrect or outdated information on any of your credit reports, you will then need to file a dispute with each agency that reports inaccurate information. You can find a sample dispute letter here: How to Dispute Credit Report Errors. You will need to contact the creditor who has provided the incorrect information, as well. Reporting agencies must investigate disputes and correct or remove inaccurate information, normally within 30 days. When you file disputes, send all correspondence by certified mail with return receipt to document your dispute and progress of the situation. If your dispute results in a correction of your report, the reporting agency must provide you with a free copy of the corrected report. If, however, your dispute is not resolved, you can request that your statement of the dispute be included on future reports and placed with your file. This ensures that anyone requesting your credit report will see those items which you have disputed.
No matter what condition your credit is in, you need to stay informed as to what is being reported about you. Your credit report affects not only whether you can get any new credit but also how much interest will be charged. It also can affect your chances for obtaining employment, especially when the position in question revolves around handling money. Keeping track of your credit report is also an important tool in protecting yourself against identity theft. Exercising the rights available to you and working to improve your credit report are key steps in taking control of your credit.
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