In today's society, we can't function without credit. We need it to pay bills, borrow money, and to buy our homes and cars. A luxury of the current age is that credit is often granted easily and quickly, a result of years of automation and refining of record keeping. The glue that holds it all together is the credit report, a document made available to lenders by the three major credit bureaus. When an individual applies for credit or a loan, the lender can see the financial history of the applicant and make a decision quickly. But what if the information on that person's credit report is wrong?
It turns out that more often than not, the information contained on a credit report may not be accurate. While most mistakes are simple ones, such as address problems, others are more serious. Here are a few examples:
Mistaken identity ? People with similar names or dates of birth are occasionally confused by the system, which can lead to credit reports that have completely erroneous entries. If you live in Minneapolis and have lived there all of your life, it would be pretty shocking to see your credit report indicate that you have defaulted on your mortgage on a home in Miami. Sometimes it's even worse than that some individuals have had problems obtaining loans because their credit reports indicated that they were dead!
Administration errors ? Sometimes correct information gets entered incorrectly. A bill paid on time and in full might be recorded as only partially paid. An open account may be shown as closed. A loan paid in full may be recorded as in default. Sometimes these are human mistakes and sometimes they are computer errors.
Identity theft ? A problem caused when someone obtains your personal information and obtains credit or loans by posing as you. This is one of the most difficult problems to fix, and it often takes more than a year to even find out that you have been victimized.
The best way to fix these problems is to be vigilant. Check your credit report often and report errors as soon as you find them. The longer you wait to report a mistake, the harder it will be to repair since paperwork and other documentation often gets misplaced over time. A few minutes spent check your report once or twice a year may save you hundreds of hours of work later.
?Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to establishing credit, debt consolidation and credit counseling.
Government Free Credit Reports
Most Americans are aware that any time they try to borrow money, the lender consults with a credit report outlining the borrower's credit history. These reports are prepared by the major credit bureaus ? Experian, Equifax and Trans Union, and the reports, along with the accompanying credit score, contain a distillation of the borrower's entire financial history. Armed with that information, the lender can make a decision as to whether granting a loan or credit would be wise. What many Americans don't know is that most credit reports contain errors. Worse, it can take months or even years to correct those problems. In the meantime, the errors may prevent the borrower from obtaining a loan or credit.
A recent study shows that nearly four out of five credit reports contain errors. Worse, roughly one in four contains an error that is serious enough to prevent the individual from obtaining credit or borrowing money. Most of these errors are minor they may simply consist of an incorrect address, phone number or perhaps date of birth. Others can be more serious, such as listing a paid loan as being in default, or including information from another person's credit history. These types of problems can be serious, as they can adversely affect the credit score of the individual involved. The lower the credit score, the harder it is to obtain credit or to get a loan at a favorable interest rate.
According to the Fair Credit Reporting Act, consumers are supposed to be able to fix these problems quickly, but it often doesn't work out that way. Sometimes, even if the person has proof that the information contained in the report is wrong, the bureaus are reluctant to correct it. A reason often given is that the bureaus would prefer to believe the lenders who provided the information rather than the consumer adversely affected by it.
The best way to avoid such credit report problems is to check your credit report regularly and to report problems or incorrect information immediately. You can do this, for free, by visiting http://www.annualcreditreport.com, a Website that allows Americans to obtain one free credit report per year from each of the three major credit bureaus.
?Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to establishing credit, debt consolidation and credit counseling.
Admin has sinced written about articles on various topics from Infidelity, Tax and Class Action. Charles Essmeier. Admin's top article generates over 368000 views. Bookmark Admin to your Favourites.
Become A Used Car Dealer Having knowledge about the pricing patterns and car terminology having concise information is necessary to deal with a potential buyer