Credit Rating: How to Protect It!
YES, YOU CAN Stop Annoying Sales Calls & Junk Mail!
Contacts and Resources
If your efforts to have inaccurate information removed from your credit report fail, make sure to copy this Consumer Rights Organization on all your communications with the credit card and credit reporting agencies:
Helpful Links
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Relevant Topics:
- Your Credit Rating:
- The Importance of Your Credit Rating
- What does your credit score mean?
- How to Get Your FREE Annual Credit Report
- Get your FREE Credit SCORE (you don't have to give your credit card information)
- Tips for Disputing Incorrect Information on your Credit Report
- How Joint Accounts Can Hurt Your Credit
- Know Your Legal Rights
- ID Theft - A Growing Threat!
- ID Theft by Mail - Those unsolicitated credit applications that you receive in your mail are not only annoying, but they also increase your risk of identity theft. You can stop. Follow this link for info.
- Protect yourself from PC Viruses / Worms / Spyware
The Importance of Your Credit:
Your credit rating can impact every aspect of your life, including ...
- your ability ...
- to get a job;
- to get a loan or mortage;
- to obtain insurance
- the interests rate you have to pay to receive a loan; even interests rates of existing loans can be affected by changes in your credit.
Wisely managing your credit, will help you ...
- build wealth instead of paying off debt
- get lower interest rates and better loan terms
- plan a successful financial future
Your credit report documents your financial behavior over the past several years - how much credit you have, how long you've (you have) had it, and whether or not you pay your bills on time.
In order to manage your credit rating, you need to know what is on your credit report - so you can identify any problems and take any actions that might be necessary. Errors can appear in your credit report for many different reasons and, if they do, you need to get them fixed immediately.
Monitoring your credit report is also important for identifying and stopping identity theft.
What does your credit score mean?
Your credit score is based on several elements that measure of your creditworthiness. The higher your credit score, the less risk you present to a lender and, therefore, the more likely they are to give you a loan and the better the terms you will receive (such as lower interests rates).
The most commonly used credit scores are those provided by Fair Isaac Corporation, called FICO® scores. A FICO score can range from 300 to 850. The average American credit score is 692. The three major credit reporting agencies, Equifax, Experian, and TransUnion, may have different credit scores for you - although they usually don't vary too greatly.
The following provides information on the score range and interpretation.
- 700 - 719 - Very Good – qualifies to receive favorable financing
- 675 - 699 - Average – will qualify for most loans
- 620 - 674 - Sub-prime – May qualify but will pay higher interest
- 560 - 619 - Risky. It might be difficult to get a loan.
- 500 - 559 - High-risk.
- Payment history – Your timeliness in paying all credit/debt accounts. Punctuality counts towards a higher score. Points off for past due or delinquent accounts, bankruptcies, and liens.
- Total amount you owe – The ratio of your available credit to your total amount owed.
- Length of credit history – This segment also factors in the time since the last activity on each account.
- New credit accounts and inquiries – This includes the number of accounts you've 10% recently opened, as well as recent inquiries and any efforts to reestablish good credit.
- Types of credit in use – Based on the number of your accounts that are credit cards, installment loans, mortgages, etc.
How To Receive the Annual Free Credit Report You Are Legally Entitled to & Dispute Inaccurate Information:
The Fair Credit Reporting Act requires each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – to provide you with a free copy of your credit report, at your request, once every 12 months. (Note: Residents of the Georgia are legally entitled to two (2) free credit reports a year. )
Many websites claim to offer “free credit reports,” “free credit scores,” or “free credit monitoring.” But, be careful. These sites are not part of the official annual free credit report program. Some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period ends. If you don’t cancel during the trial period, you may be agreeing to let the company start charging fees to your credit card.
The Federal Trade Commission, the nation’s consumer protection agency, wants you to know that, if you want to order your free annual credit report online, there is only one authorized website: annualcreditreport.com.
- To Order the TRULY Free Annual Credit Report that you are legally entitled to ...
- Visit annualcreditreport.com
- Please note that this website will take you to the websites of the different credit reporting agencies and those put the information in a way that you have to LOOK to find your FREE credit report links, enticing you to pay for monitoring and additional services instead. Spend a few minutes going over the webpages and make sure to click on the free credit report link. Make sure you do not provide your credit card information. You shouldn't have to do so to get your free credit report. I went through the process and was able to finally get the information I wanted - without paying a cent.
- Visit annualcreditreport.com
The Problem with Joint Accounts ...
If you have been a victim of an identity theft and have debts popping in on your credit report that don't belong to you, or you have to deal with the remnants of a former marriage or relationship (joint accounts - refer to the below) that impacted your credit rating - you know how difficult and frustrating it is to correct that information.
Joint Accounts - BIG MISTAKE! The most valuable advice I can give you is about "joint accounts." Credit companies LOVE joint accounts because if one person doesn't pay for whatever reason, they legally can and will go after the other. After a "separation of ways" / divorce, whatever, do make sure to close those accounts or at least take yourself off those accounts. Even if you know your former partner / spouse is a responsible person who pays off his or her debts diligently.
- To put it crudely: If he or she gets run over by a bus tomorrow - or has a stroke or some other condition that prevents them from working - you will be responsible for his or her debts.
- If you are divorced YOU will have to prove that all debts have been incurred AFTER your divorce. A lot of time, effort and money is going to go into proving that and having that information taken off your records. If you were just "separated" - not divorced -- tough luck. You will be responsible for the other person's debt.
- Conclusion: Nobody knows what the future will bring ... a simple call to get your name off a joint account can save you a lot of problems, and potential financial hardship, in the future ... Better yet, keep your credit separate.
- According to the Fair Credit Billing Act, creditors have to send you statements to make you aware of any debts before it affects your credit. If they don't do that, they are violating the law.
- According to the Fair Credit Reporting Act, creditors have to give you written notice that they have or are intending to submit negative information about you to the national credit reporting agencies.If they don't do that, they are also violating the law. Knowing this is going to give you leverage when negotiating with those guys.
- If they violate those basic rights, you are entitled to sue for the damages, specifically you can seek up to $1,000 in statutory damages, plus actual damages, punitive damages and reasonable attorney's fees and costs for willful noncompliance with the Act (§ 602 - 15 U.S.C. § 1681). Of course, first you should try work with them to resolve it. If they don't -- then by all means you have the right to sue them for damages.
- Recommended Resources:
- FCRA Information : Summary of Rights
- Federal Trade Commission: Credit Reports & Scoring -- Know your rights!
