Posts Tagged ‘credit articles’
Why Does FACTA Matter to Me?
FACTA stands for Fair and Accurate Credit Transaction Act. FACTA is the law which allows any American access to their credit report once per year. The law went into effect Jan. 1, 2005. So what does that mean for you as an employer?
On June 1, 2005, a new provision of FACTA goes into effect. It says that any employer (even if you only employ one person, and you have their personal information so that you can pay social security taxes,) whose action or inaction results in the loss of employee information, can be fined by federal and state government, and sued in civil court.
A USA Today article on FACTA from Jan. 14. 2005, stated “Bet you didn’t know that.” But you need to know, and need to know what you can do to protect yourself.
Small Businesses affected the most
‘”A small businessman who makes a mistake could bear the brunt of a regulation like this,” says James Plummer, policy analyst at Consumer Alert, a non-profit group that focuses on a free-market approach to consumer regulations.’
The USA Today article goes on to say that “if you don’t shred and information gets out, there are penalties.” But what if you do shred all potential employee information, and take all necessary precautions to protect your past, current, and future employees’ identities, and the information still gets out somehow? Under FACTA, you could still be held responsible.
You may not think information theft could happen to you, but neither did this short list of companies, universities, government institutions, and businesses that have had employee or customer information stolen from them:
DSW Shoe Warehouse
Lexis Nexis
University of Northern Colorado
California State University (Chico)
University of California ? Berkeley
University of Maryland
Las Vegas Department of Motor Vehicles
Bank of America
Choice Point
Weld County (CO) Employees (information stolen by an inmate while in jail)
How can you, as an employer, minimize your liability?
There are hundreds of things you can do to minimize liability, which are probably things you already do. Document shredding, redaction of electronically stored information, careful screening of employees who will be coming into contact with personal information of customers and employees, physically locking file drawers with sensitive information, and setting up firewalls on computer equipment connected to the Internet, among hundreds of other solutions, are all good ideas.
The old saying that an ounce of prevention is worth a pound of cure is definitely the case when it comes to securing personal information. However, no matter what prevention steps you take, there is no 100% effective way to be sure that employee’s information won’t be compromised. Even if the information doesn’t get out from your company, an employee can claim that it did.
That’s a scary thought! What if an employee claims that their information was stolen through the actions of your company, but there’s no real proof to back it up? You will end up hiring (or using) an attorney to represent and defend your company in court. At $150 – $200/hour for most attorneys across the United States, how long can you afford to defend your company?
So what can you do?
The only sure solution, or at least the only solution that would at least provide an affirmative defense against the fines, fees, and lawsuits you could incur as an employer, is to offer some sort of Identity Theft protection as a benefit to your employees.
As an employer, you can choose whether or not to pay for this added benefit. However, the most important thing you can do is to make the protection available, and have a mandatory employee meeting, similar to what you probably already do for health insurance, to help employees understand Identity Theft and the protection that you are making available to them. When you make the protection available, and when your employees have been educated on the dangers of Identity Theft, they can either elect to have identity theft coverage as a benefit, or they can decline the coverage as a benefit.
If the employee has Identity Theft coverage and becomes a victim, it is beneficial to your business, because an employee with Identity Theft coverage will spend less time, less money, and will experience less frustration while trying to have their information restored. This will get them back on the job and focused on work more quickly.
If the employee declines the coverage, and later claims that the information was stolen as a result of you or your company’s actions, you have a piece of paper, with their signature, saying that they attended the presentation and declined the coverage.
Choosing to not make Identity Theft coverage available leaves you exposed to an unlimited dollar amount that you can be sued for under civil liability, federal fines of up to $2,500.00 per employee per incident, and state fines of up to $1,000.00 per employee per incident.
Recommended course of action? Have a benefits consultant who offers an Identity Theft protection plan present to your employees. Help them set up a 20 minute presentation with your employees, and make it mandatory that all employees attend. You want your employees to be protected from this awful crime. If they choose not to be, but you’ve given the option of being protected, then the liability becomes theirs, not yours, when they become a victim of identity theft.
Jonathan Kraft is a benefits consultant who specializes in educating people about how they can get affordable access to the legal system. Because of his work in the field of electronic Identity Theft, he has come to be known as Colorado’s Foremost Expert on Computer Related Identity Theft. To schedule a time for Mr. Kraft to present Identity Theft and Legal Service protection to your employees, please contact him at (877) 825-7119. You can also find out more on the web at http://www.strive4impact.com/group
Credit Report Hassles
There is no end to the amount of pain that your credit report can cause you. If you have a bad credit history this is something that can follow you around and wreak havoc on your life without you even knowing it. Do you know how many people did not get a job because their credit report was awful? Thousands and how many do you think realized that that was the reason they did not get a call back? I would venture to say a big fat zip. Credit counts for everything nowadays and it is only going to count for more in the future.
Whenever you apply for a job, an apartment, a loan or for credit your report is likely going to get looked at. No one wants to get involved with an unreliable person, especially those who are going to have to depend on this person for some important reason, like a rent check or to keep their business running. That is why people with bad credit find themselves getting the short end of the stick all of the time.
If you have found yourself getting rejected an awful lot lately you may want to sneak a peek at your credit report to see if that is the reason. Even if you have never owned a credit card you may still have bad credit. They are not the only things that get reported to the credit bureaus. If you have any bills in your name, car insurance, heating, anything at all, whether you make your payments or not are all finding their way onto your credit report.
Everyone should be checking their report at least once a year to see how they are doing. If you want to get yours you can visit Equifax, Experian or TransUnion online today to get your free copy.
Martin Lukac, represents, #1 Loans USA, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. http://www.1LoansUSA.com
The Hazards Of Your First Credit Card
You probably don’t need me to tell you credit cards are easy to get a hold of; at least, that is so in the US and UK. How many weeks pass without a glossy brochure promoting a credit card popping through your letter box? And that’s just your mail; the tv advertising budgets for credit card promotion are enormous, with some famous faces often adorning your screen, smiling beautifully as they tempt you. How does anyone resist that promotional onslaught, coupled with the peer pressure, and the “have now, pay later” culture in which we live? Well, the fact is, few people do resist. If you are credit worthy and have no credit card, you are something of a rarity.
Credit cards are almost as easy to get as your fruit and vegetables from the local supermarket. The thing is, you can have a bad credit history, and still get deluged with offers of easy credit. Even if you have just filed for bankruptcy, you may still get more offers of credit cards than you know what to do with!
Because of the ease of availability, credit card debt is all too easy to get into. Not just once, but over and over again. Partly it’s psychological, as we may not feel like we are spending real money. That is, until the chicken comes home to roost, and the bill comes. By then, of course, it’s too late; you have a debt for which you are legally responsible. The credit card companies have slick marketing departments who know we are weak, and that we may easily fall prey to temptation.
It is often recommended, when trying to establish a good credit report, that it is a good idea to get a credit card, and then use it to spend wisely. Experts will advise us to pay our bills on time, and never to exceed the credit limit. However, when you get you first credit card, nobody really goes to any real trouble to warn you, bluntly, of the pitfalls:
1. It is easy to be lured into spending up to the credit card’s limit; before you know it, that one moment of weakness a month has taken you up to the limit.
2. You may have a low interest rate to begin with, but that was an introductory offer; a lure; a bribe; to get your business and your money and tempt you more and more. Soon, the permanent interest rate will kick in. How does 20% pa sound? It could be that much. Were you warned how quickly that builds up? How the monthly interest alone may make it difficult for you to pay your monthly repayment every time, on time?
3. Close on your credit limit and with high interest charges, you miss a payment and go over the credit limit. Unknown to you, you are now getting black marks on your credit report
Unfortunately, when times are difficult, over use of credit cards is far too easy. If you are short of cash for any reason, it is easy to reach for the credit card. But if you find yourself tempted to use it for day to day expenses, then you are on the route to credit card debt problems that will mar your credit report for a long time to come. That can affect mortgage applications, car loan applications, and even your desire to move to a new apartment.
Always bear in mind that credit card debt has long term risks. If you have got this far without a credit card, think long and hard if you really need to apply for one. It is true that if you use credit cards wisely, you can build a credit history that brings rewards instead instead of risks. But the temptation is always there. Always remember that you are paying the bank for the privilege of having a credit card, and you are paying a high rate. If you think you may succumb to temptations too often, then be different: save as much as you can each month, and then if you hit upon hard times, you have the option of reaching for the savings account instead of the credit card fix. For non-cash convenience, you can use a debit card rather than credit card.
Roy Thomsitt is owner and part author of http://www.eliminate-credit-card-debt-now.com
Warning: Free Credit Report Imposter Websites Springing Up on the Web
A recent amendment to the federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer credit reporting companies to provide consumers with a free copy of their credit report, upon request, once every 12 months.
Access to the free credit reports has been phased in beginning last December in the West and will finally be nationwide by 1 September. This is good news to consumers.
However, a new form of phishing, is manifesting itself even before access to free credit reports is available for all Americans.
The new law that requires the three national credit bureaus to provide a free annual credit report to consumers, has met with the law of unintended consequences. Although the law was initially created to help thwart identity theft, the process for requesting the free credit reports may in fact contribute to further identity theft or loss of privacy.
While the intent of the law was to make it easier for consumers to check for errors and possible evidence of identity theft in their credit reports, according to a new report by the World Privacy Forum, more than 200 imposter websites have sprung up trying to exploit one of the methods made available for consumers to apply for their free credit reports.
One of the methods by which consumers can apply for their free credit reports is through a website that was established jointly by the three credit bureaus. The official website for applying for the free credit reports is at http://www.annualcreditreport.com
But, if the identity thieves and other unscrupulous internet swindlers have their way, part of the very process sent up in an attempt to curtail identity theft, will leave consumers vulnerable to further loss of privacy.
The online pilferers create websites with domain names that are very close to the official website www.annualcreditreport.com. By registering similar names or close misspellings, such as wwwannualcreditreport.com (note the missing dot), creditannualreport.com and www.freeannualcreditreports.com they hope to entice consumers to unwittingly enter their private information into online web forms, thinking that they are on the official website.
Depending upon the level of personal information detail captured from the imposter websites, the swindlers can then use the garnered information for illegal purposes, sell the information to purveyors of personal information databases, or they can simply send the unsuspecting consumer to commercial websites.
While the majority of imposter websites, simply gather names, addresses, and email addresses and then send the consumer on to advertising sites, some sites attempt to gather social security numbers, birth dates, and other sensitive information.
To guard against the possibility of entering personal information on an imposter site, consumers can go to the official website from a link off from the www.ftc.gov website or call the official toll free number (877-322-8228) to get the free copy of their credit report.
Note: Strange as it may seem, your free annual credit report does not contain your credit score. For more information on your credit score, what it is, how it is used, and why it is important, see the resource box below.
Copyright 2005 George Dodge
George Dodge has been developing on the Web since 1994 and is owner of http://www.The-Credit-Repair-Center.com a source of information on personal finance management. For information on how you can also get a free copy of your credit score (which is NOT included with your annual free credit report), click here -> http://www.The-Credit-Repair-Center.com/scores/credit-scores.html Your Credit Score – Do You Know What It Is?
Credit Counseling: Could it Work for Me?
In the face of financial hardship, many seeking a responsible solution turn to credit counseling. Credit counseling is, all too often, the last stop before bankruptcy. That is, of course, not to say that credit counseling prevents bankruptcy altogether. There are more cases than one might think that end up in bankruptcy court after credit counseling has failed to remedy the financial woes of the debtor.
It is doubtful that the failure of credit counseling for some consumers can be blamed on the credit counseling company. Sure there are some cases but, more often than not, credit counseling fails to end financial problems because the person who ran up the debt in the first place continues to run up the debt or doesn’t stick to the budgeting that they were taught through credit counseling.
If you are thinking of pursuing credit counseling, it’s important to remember that, as with any counseling, you get back what you put into credit counseling. You can’t expect miracles from your credit counseling company. Credit counseling is all about working with you, not working for you. Credit counseling is not going to solve your financial problems, but rather teach you to solve your own financial problems and avoid getting back into them.
Even if you relapse into debt after successful credit counseling, it is still, most likely, going to be a better option for you than bankruptcy. Credit counseling can be a wealth of knowledge, even if you have a hard time putting it into, or keeping it in, action. Sometimes there are more complexities behind financial problems that just can’t be solved through credit counseling. Once you have dealt with all of the issues surrounding your debt appropriately, the education you have gotten in credit counseling can ultimately lend to your financial success and freedom from debt for good.
Timothy Gorman is a successful webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, bankruptcy and free credit counseling information that you can research in your pajamas on his website.
The Ghost of Expected Surprises
Here, Cratchet, what do you think you’re doing?
Uh, er, leaving sir.
Leaving? It’s 5 minutes to the hour. Shall I dock your pay accordingly.
Uh, er, no sir.
No sir? Well it’s back to work for you then, and be quick about it. And I don’t expect your mind to be off home before your body gets out the door either, what?
Uh, er, no sir.
Quite.
Will you be doing anything for Christmas, sir?
Christmas, Schmissmiss.
Uh, er, what sir?
Schmi, schmish. Smiss.
Are you okay, sir?
Schmee, smaa, ooh.
Mr. Scrooge, sir? Mr. Scrooge? Mr. Scroo?.
***********************************************************************
Oooohhh. Ooooooooooooooh!
What? Who? What? Oh!
EEEIIIIII am the Ghooooost of Expeeeected Surprises.
What? What? Again? Not again. Oh please, spirit, not again. Please no.
EEEIIIIII visited yoooooou laaaast year, Scroooooooooooooge.
Oh, yes, spirit, that you did. That you did. Ooooooooh, and here I forgot!
FOOOOORGOOOOOT!!!!!
Oh, please spirit. Not so loud. Not again. Not again.
Why am I heeere again, Scrooooooooge? Why again?
Uh, uh, because I forgot the very thing that comes around every year. I forgot, yet again, Spirit. Silly me. Oh, silly silly me. I’m a bad man, spirit. Please have mercy. Oh please.
What is the Deeeeefinition of Expeeeected, Scrooooooge?
Um, of course, yes, I know this, why it’s something known in advance. Yes. Known in advance, spirit. Something you can see coming. It’s clear. It’s clear now, spirit. Foresight. Advanced knowledge.
And yet you are caught unprepaaaaaared again this year, Scroooooooge!!
I am, good spirit. I am wholly unprepared. I didn’t see you coming either, I fear. Stupid, silly man that I am. Oh spirit. Please. What is to become of me?
Yoooooouuuuuuu knoooooow.
Oooooh. Not that spirit. Anything but that.
Yeeees. Scroooge. Revise yoooooour buuuuuudgettt.
My, my budget, spirit? But I have a budget.
Muuuuuussssst yooooou beeee reminded agaaaaain? Yooooou have a moooonthleeey budget, Scroooooge. Buuut you have nooooo alloooocation foor annual expeeeennnssses.
I forgot, spirit. I forgot.
Eveerrrry year yooooou have nooooo money fooooor Christmaaaaas. Noooo money foooooor birthdaaaaay gifts, noooooo money foooooor caaarriage insurance, noooo caaaash for property taaaaxes.
No spirit. Never a penny. Never a pound. Never a schekel I fear. I’m tapped out and credit cards haven’t been invented yet!
AAAAAAAAAAAAAAAAAAAAHHHHH! Never meeeention credit caaards, Scrooooooooge!
Sorry, spirit.
The Ghoooost of Future Expeeeeected Surprises is beset with credit caaaaard nightmaaaaares! Yoooooou don’t waaaant a visit from hiiim.
No spirit, no. Not him. I’ve learned my lesson spirit. I have. I know I have. I will budget for annual expenses from now on. No longer will Ebenezer Scroooge be surprised by the expected. Caught without cash for things he knew, and always knew, were coming…yet again.
Caaaaash fooooor Christmaaaaaaas gifts too, Scroooooooooooge?
Wa, uh, ee, well, uh?
About The Author
Rick Hoogendoorn has been in the financial services industry in Victoria, BC since 1991. Happy Holidays from Cheri Crause & Associates Inc.
Establishing Credit ? What You Need To Know Part 2
In my previous article “Establishing Credit ? What You Need To Know Part 1″ I discussed the need for a good credit history and what lenders were looking for prior to loaning an individual money or additional funds based on their credit history. This article will go into the necessary steps someone needs to take in order to initially establish their credit history.
The first and easiest step is to show any potential lenders that you actually know how to handle money. This can be easily achieved by opening either a savings or checking account (opening both would be better) in your name. As you successfully use these accounts you will prove to a lender that you can handle money and are ready for the increased responsibility that comes with having additional credit.
Another means of establishing credit actually involves borrowing funds and then paying them back over time without any late payments. Although this method to establishing a good credit history is quicker and very effective when compared to the long drawn out procedure of making withdraws and transfers to your savings/checking account it comes with the drawback of the cost associated with obtaining the loan in the first place. If you’re having trouble obtaining a loan but still wish to use this method to establish your credit history then seek out a friend or relative with known good credit and have them cosign on a loan for you. Remember this is asking a lot from that individual so please don’t abuse the trust they put into your ability to repay the loan on time and without problems.
Other popular methods of establishing credit include applying for credit cards or department store cards. Again, although this method is very effective for establishing credit (provided you make your payments on time) it could be costly if you start to carry a balance on these cards. Always check to see that there is no annual fee and make sure you are aware of the financial charges imposed against you if you should decide to carry a balance on any card you have. Obviously the best plan is to always pay your balance off in full each and every month. This allows you to build your credit history and avoid being buried under a mountain of high interest debt.
A word of caution ? identity theft and credit theft is a very real and dangerous problem in today’s society so you want to make sure you do everything you can to protect your newly established credit history. Always make sure to secure your credit cards and never let anyone obtain your personal identification number (PIN). If you have numerous credit cards avoid carrying them all at once. Instead just carry the card you normally use and file the rest away in a safe place. Always make sure to keep information such as contact numbers and account numbers of the cards you have been issued. This will help you if you ever lose or have a card stolen.
If you find that you have lost a card or had it stolen simply contact the company that issued the card and report your situation. If the card hasn’t been used prior to your reporting it lost or stolen then you’re relieved of any future financial liabilities against the card. If it has been used prior to your reporting then you may be held accountable for up to $50. Finally, always be cautious about who you give your account number to and remember to keep all receipts and records that are associated with that particular card.
Establishing a good credit history isn’t that difficult if you start small and work your way up. It will take some time but if you do it right it will definitely pay off in the future and allow you the opportunity to obtain credit for the items you really want to purchase or may really need.
Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com He provides more debt relief, consolidation and free credit counseling information that you can research in your pajamas on his website.
Free Credit Reports: From The 3 Major Credit Bureaus!
Get your credit report online for FREE. Many financial advisors suggest that you periodically review your credit report for inaccuracies or omissions.
This could be especially important if you’re considering making a major purchase, such as buying a home. Checking in advance on the accuracy of information in your credit file could speed the credit-granting process, clean credit is a must.
A recent amendment to the federal Fair Credit Reporting Act (FCRA) requires each of the credit bureau`s to provide you with free credit reports, at your request, once every 12 months.
Free Credit Reports, contain information on where you live, how you pay your bills, and whether you’ve been sued, arrested, or filed for bankruptcy. Nationwide credit bureau`s sell the information in your credit report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. There are three nationwide credit reporting companies Equifax, Experian, and Trans Union.
Everyone in the Western states will first be able to order their free credit reports under the federal law beginning December 1, 2004. Consumers in other states will be able to order their copies according to a regional roll-out detailed below.
In recent months, consumers have asked the FTC for more details about their rights under the federal FCRA and the Fair and Accurate Credit Transactions (FACT) Act, which established the free credit reports program. They’ve also asked about credit reports in general. Here are the most frequently asked questions and the answers.
Q: How do I know when I’m eligible to get a free credit report?
A: Soon free credit reports will be phased in during a nine- month period, rolling from the West Coast to the East beginning December 1, 2004. Beginning September 1, 2005, free credit reports will be accessible to all Americans, regardless of where they live.
Everyone in the Western states Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming can order their free credit reports beginning December 1, 2004.
Everyone in the Midwestern states Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin can order their free reports beginning March 1, 2005.
Everyone in the Southern states Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas can order their free reports beginning June 1, 2005.
Consumers in the Eastern states Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia the District of Columbia, Puerto Rico, and all U.S. territories can order their free credit report beginning September 1, 2005.
Q: How do I order my free credit report from the 3 major credit bureau`s?
A: You may order your free credit reports from each of the three nationwide credit bureau`s at the same time, or you can order from only one or two. The law allows you to order one free copy from each of the nationwide credit reporting companies every 12 months.
Q: What information do I have to provide to get my free credit reports?
A: You need to provide your name, address, Social Security number, and date of birth.
If you have moved in the last two years, you may have to provide your previous address.
To maintain the security of your file, each nationwide credit bureau`s may ask you for some information that only you would know, like the amount of your monthly mortgage payment.
Each company may ask you for different information because the information each has in your file may come from different sources. The nationwide credit reporting companies will not send you an email asking for your personal information. If you get an email or see a pop-up ad claiming it’s from any of the three nationwide consumer reporting companies, do not reply or click on any link in the message it’s probably a scam.
Forward any email that claims to be from any of three credit bureau`s to the FTC’s database of deceptive spam at spam@uce.gov. Any of three credit bureau`s also will not call you to ask for your personal information.
Q: Why would I want to get a copy of my free credit reports?
A: You may want to review your free credit reports:
because the information it contains affects whether you can get a loan and how much you will have to pay to borrow money. 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. to help guard against identity theft.
That’s when someone uses your personal information like your name, your Social Security number, or your credit card number to commit fraud.
Identity thieves may use your information to open a new credit card account in your name. Then, when they don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.
Q: How long does it take to get my report after I order it?
A: If you request your free credit reports online, you should be able to access it immediately. If you order your report by mail using the Annual Credit Report Request Form, your request will be processed and mailed to you within 15 days of receipt.
Whether you order your report online, by phone, or by mail, it may take longer to receive your report if the 3 major credit bureau`s needs more information to verify your identity.
There may be times when the major credit bureau`s receive an extraordinary volume of requests for credit reports. If that happens, you may be asked to re-submit your request. Or, you may be told that your report will be mailed to you sometime after 15 days from your request. If either of these events occurs, the 3 major credit bureau`s will let you know.
Q: Are there any other situations where I might be eligible for a free credit report?
A: Under federal law, you’re entitled to a free credit report if a company takes adverse action against you, such as denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action.
The notice will give you the name, address, and phone number of the credit reporting company. You’re also entitled to one free credit report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is inaccurate because of fraud, including identity theft.
Otherwise, a credit reporting company may charge you up to $9 for another copy of your report within a 12-month period.
To buy a copy of your report, contact:
Equifax 800-685-1111 www.equifax.com
Experian 888-EXPERIAN (888-397-3742) www.experian.com
Trans Union 800-916-8800 www.transunion.com
Under state law, consumers in Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey, and Vermont already have free access to their credit reports.
Q: Should I order a credit report from each of the 3 major credit bureau`s?
A: It’s up to you. Because the credit bureau`s get their information from different sources, the information in your credit report from one company may not reflect all, or the same, information in your reports from the other two companies. That’s not to say that the information in any of your reports is necessarily inaccurate; it just may be different.
Q: Should I order my reports from all three of the major credit bureau`s at the same time?
A: You may order one, two, or all three free credit reports at the same time, or you may stagger your requests. It’s your choice. Some financial advisors say staggering your requests during a 12-month period may be a good way to keep an eye on the accuracy and completeness of the information in your reports.
Q: What if I find errors either inaccuracies or incomplete information in my credit reports?
A: Under the Fair Credit Reporting Act, both the credit bureau and the information provider (that is, the person, company, or organization that provides information about you to a credit bureau`s) are responsible for correcting inaccurate or incomplete information in your report. To take advantage of all your rights under this law, contact the Credit Bureau and the information provider.
Tell the credit bureau, in writing, what information you think is inaccurate.
They must investigate the items in question usually within 30 days unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the credit bureau, it must investigate, review the relevant information, and report the results back. If the information provider finds the disputed information is inaccurate, it must notify all three credit bureau`s, so they can correct the information in your file.
When the investigation is complete, the credit bureau must give you the written results and free credit reports if the dispute results in a change. (This free report does not count as your annual free report under the FACT Act.) If an item is changed or deleted, the credit bureau`s cannot put the disputed information back in your file unless the information provider verifies that it is accurate and complete. They also must send you written notice that includes the name, address, and phone number of the information provider.
Tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider reports the item to a credit bureau, it must include a notice of your dispute. And if you are correct that is, if the information is found to be inaccurate the information provider may not report it again.
Q: What can I do if the credit bureau or information provider won’t correct the information I dispute?
A: If an investigation doesn’t resolve your dispute with the credit bureau`s, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the credit reporting company to provide your statement to anyone who received a copy of your report in the recent past.
You can expect to pay a fee for this service.
If you tell the information provider that you dispute an item, a notice of your dispute must be included any time the information provider reports the item to a credit bureau.
Q: How long can a credit bureau report negative information?
A: A credit bureau can report most accurate negative information for seven years and bankruptcy information for 10 years.
There is no time limit on reporting information about criminal convictions; information reported in response to your application for a job that pays more than $75,000 a year; and information reported because you’ve applied for more than $150,000 worth of credit or life insurance.
Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.
Q: Who else can get a copy of my credit report?
A: The Fair Credit Reporting Act specifies who can access your credit report. Creditors, insurers, employers, and other businesses that use the information in your report to evaluate your applications for credit, insurance, employment, or renting a home are among those that have a legal right to access your report.
Q: Can my employer get my credit reports?
A: Your employer can get a copy of your credit report only if you agree. A credit bureau may not provide information about you to your employer, or to a prospective employer, without your written consent.
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Check Your Credit Before Shopping For That Home Loan
Review Your Credit Score.
Nearly every bank, credit union, and mortgage lender relies on a three digit score provided by one of the three major credit bureaus to help them make lending decisions. A credit score can range from the perfect 850 all the way down to the abysmal 300. Scores under 720 may not qualify for the best interest rates, so you should check your credit scores with all three bureaus before shopping for a loan. You may discover you have some cleaning up to do before you can take advantage of a great loan deal.
Scan Your Report for Mistakes.
Though some consumers struggle with debt, many more would-be borrowers suffer needlessly because of mistakes they made in the past or mistakes that credit bureau systems made when compiling their reports. To avoid embarrassment and wasted time during the loan origination process, you should review your report carefully before you start shopping for loans. Dispute any inaccuracies both with the credit bureau and with the creditor using certified mail. If you find any long-lost bills you left unpaid, pay them. A bill as insignificant as $100 can actually stall or derail the closing process, costing you the chance to buy your dream home.
Avoid Credit Applications.
In the weeks leading up to your home purchase, you may consider switching banks or responding to attractive credit card offers. Resist the urge to earn those frequent flyer miles, because a flurry of applications can show up on your credit report simultaneously. Therefore, lenders may grow concerned about potential identity theft. Even worse, lenders might assume you’ve lost control of your spending, making you an unsuitable candidate for a home loan.
Do All Your Shopping on the Same Day.
For the same reasons, you should choose one day to make inquiries from your favorite mortgage lenders. A few weeks after your inquiries, your applications will show up on your report and drag down your score by a few points. Because the bureau assumes that every application may result in an approval, the amount of your potential debt load increases significantly. In addition, the market changes so frequently that quotes made on different days cannot be compared directly. Be prepared to make your phone calls, run the numbers, and accept a locked pre-approval all on the same day.
Kevin Adelsberg is a writer for FDLoans.com. For additional articles and an extensive resource for everything about loans, please visit us at http://www.FDLoans.com
Choosing A New Credit Card
1. Choosing A new credit card
There are many reasons for choosing a new credit card.
It may be your first card or you may wish to reduce the amount of interest you’re paying each month or if you’re lucky enough to pay off your balance each month you may wish to take advantage of one of the many reward schemes around.
To help you choose we have compiled a set of questions and answers. One thing to consider is that you need more than one new card. For example if you have an outstanding balance and use still make purchases you should consider switching to a balance transfer card for the outstanding balance and a seperate card for the ongoing purchases. This is provided you pay off the ongoing purchases of course.
2. What To Ask – Standard Questions
Scenario : You pay off your existing balance each month Solution : Choose a reward scheme card. These will either pay be cash or may be points that can be used to purchase certain products.
Scenario : You have an outstanding balance but still make ongoing purchases Solution : Transfer the existing balance to 0% balance transfer card and at the same time get an introductory purchase offer card. This way you can allow the introductory purchase card balance to build up, while you pay off the balance transfer card. You need to be very disciplined with approach though. If you have taken up a balance transfer then try to avoid new purchases on this card as repayments are weighted towards the lower interest part of the balance.
Scenario : You have a large purchase coming up Solution : Apply for an introductory purchase card and then pay off the balance over the period of the offer.
Scenario : You have a poor credit history Solution : There are some high interest cards around for people with a poor credit history. If you do obtain one of these cards then make sure you always make your repayments. This way you will slowly build up your credit rating, which will eventually make the lower interest cards available to you.
3. Can your existing card be improved
This is one option that most people completely ignore. It is entirely possible that you may be able to negotiate a new rate on your card, especially if you have another card with a lower rate. They can only say no, so what have you got to lose.
4. Should I close my existing card
Not neccessarily is the answer. You may be able to use this card in the future for a balance transfer. Also, don’t forget that you normally get around 58 days interest free credit. So you may be able to make the odd one-off purchase and spread the cost over a couple of months.
5. Finally …
Please remember the golden rule. Only borrow what you can avoid to borrow. If you are careful you can make the credit cards work for you, but if the credit card companies make a lot of money out of people allowing the spending to get out of control. Don’t allow yourself to be one of these people.
Neil Brown is a freelance writer who makes regular contributions to Credit Card Applications, Loan Applications and Credit Card Companies.
