 Helpful
Real Estate Tips
For more real
estate tips, see our Tips Archive
 TIPS
& INFORMATION FOR YOUR CREDIT FILE
I chose this month’s topic in
hopes that it will enlighten everybody as to how credit is a
factor in almost everyone’s adult life. This is not a
perfect world, and we are not all perfect. Many of us as young
adults may have foolishly not paid a credit card account, paid
back a personal, or car loan. We might have received a notice to
go to small claims court and threw it in the trash. Whatever the
reasons, it is important that we realize that in this day and age
of computers, your credit whether bad or good is usually
reported to three major credit bureaus. Companies that have
granted you credit supply the information.
You are probably wondering why “usually”
is in bold. Why? Because some creditors just do not report to the
bureaus. That is
another reason why it is important when checking your credit file;
that you contact all three credit bureaus. You may have
some of your credit grantors reporting to only one bureau
or all three. If there is incorrect information being
reported in one of these credit bureaus, it may or may not also be
reported incorrectly in the others.
- There is also information
supplied to the bureaus from medical facilities. The
information may be past due bills for hospital stays, doctor
visits, or medical testing.
- Another source of information
supplied to the bureaus is from courthouse sources. If
you were sued by a private party, company, etc. and have not
paid the judgment it will be included in your credit report.
In other words if you have a judgment because of child
support, a repossessed car, a small claims dispute, it may
be reported to the credit bureaus.
IDENTITY
THEFT
Have you ever heard of identity
theft? The FBI has reported this as one of the fastest growing
crimes in America! Protect yourself by knowing WHAT is contained
in your credit file and that it is being reported correctly! There
are unscrupulous individuals that will get a hold of your social
security number or credit card number and ruin your credit!
- Whether you are planning to
purchase a home or not it is important for you to request your
credit file from each of the bureaus. It is very simple, so
please at some point do this!
The addresses and phone numbers
I have currently are:
- TRANSUNION
1561 E. Orangethorpe Ave.
Fullerton, CA 92831
Attn: Consumer Relations
(714) 738-3800
- TRW/EXPERIAN
P.O. Box 2070
Phoenix, AZ 85001
Attn: Consumer Relations
(602) 252-6951
- CBI EQUIFAX
P.O. Box 740256
Atlanta, GA 30374
Attn: Consumer Relations
(800) 685-1111
INCORRECT INFORMATION
There can be incorrect
reporting information in your file that will state that you have
been late on some of your credit obligations now or in the past.
You might have accounts that have been closed but are being
reported that they are still open and therefore will have a
bearing on your debt to ratio (your outstanding monthly bills
against your monthly income) that may prevent you from getting an
auto loan, mortgage, credit card, etc. (“Credit Reports”
chapter)
- A SAMPLE LETTER TO THE (3)
CREDIT BUREAUS
Date:
The Creditor Bureau’s Name
& Address
Dear Sir or Madam:
Please be advised that I am
writing in regards to my complaint that the above credit agency
persists in reporting inaccurate and incomplete information
associated with my name.
Please review the following and
make the appropriate changes.
I respectfully request an
answer, in writing, within 21 days of receipt of this notice. I
understand that failure to verify these disputed items require
that they be deleted.
Social
Security#___________________
Account#_________________________
Account
Name__________________________________
Reason for Dispute:
(You should also send a copy of
this letter to the respective Creditor who is reporting the
incorrect information, so that they may correct the information in
their records also. You will need to send this letter to all three
Credit Bureaus to be sure they all have the correct
information)
When you receive your updated
corrected credit file, you will be surprised as to how you will
raise your Beacon Fico Score. (For more information regarding
Beacon Fico Score, please see the chapter in my book)
CREDIT
INQUIRIES IN YOUR CREDIT FILE
- Please be aware when car
shopping, mortgage shopping, store credit shopping, that each
time your credit report is ran for these reasons or any
other reason, you may lower your credit
score calculation. (See “Credit Inquiries” chapter)
HOW TO REMOVE YOUR NAME FROM
‘CREDIT’ JUNK LISTS
Many credit card companies and
lenders utilize the bureau’s database to offer pre-approved
credit to you by mail. You know the annoying “garbage mail”!
If you prefer not to receive these offers, please call the Option
Out Request Line at 1-(888) 567-8688.
Many direct marketing mailers for
services and consumer products gather information from your credit
file. If you would like to reduce the amount of direct market
mailings you can write to:
Direct Marketing Association
Mail Preference Service
P.O. Box 9008
Farmingdale, NY 11735-9008
State
that you would like your name to please be removed from Direct
Marketing Association member lists. Please remember to include
your complete name, full address, and signature.
SOME
FACTS REGARDING YOUR FILE
If you have paid off your account
it does not remove your payment history with the creditor.
If you had made some late payments they will still be viewed in
the account information.
The following items will remain in
your file:
Credit Accounts – Paid
as agreed (positive) – can be up to
10 years.
Not paid as agreed (negative)
– remain for 7 years.
Collection Accounts – Any
accounts that were placed in a collection agency. If you paid the
delinquent account in full, it will report, “paid” which will
raise your score somewhat but still remain in your credit file for
7 years!
(The time periods above are
measured from the “date of last activity” accompanying the
particular credit or collection account in your file)
Courthouse Records – Remain
for 7 years from the date filed:
Except:
Bankruptcy
– Chapters 7 and 11 remain 10 years from the date filed.
Bankruptcy
– Chapter 13 non-dismissed or non-discharged remain 10 years
From the date filed.
- Unpaid tax liens remain
indefinitely.
- Paid tax liens remain for up to
7 years from the date released.
New York State
- Residents Only:
Satisfied judgments remain 5 years from the date filed;
paid Collections
remain 5 years from the “date of last activity”
.
California State
- Residents Only:
Unpaid tax liens remain 10 years from the date filed.
A divorce decree does not
supercede an original contract with your creditor. It does not
release you from legal responsibility on any accounts. You can try
contacting each creditor individually and try to seek a legal
binding release of your obligation. If they agree, then you should
ask them to report it to the bureaus. If your spouse has any
creditors in their name only, that should not be
reported in your credit file. If you are divorced or married a spouse’s
individual account should not be in your file whether it be an
auto loan, store credit card, etc.
- Be aware of an account
being reported twice! You should request that one be removed!
- Be aware of your account
balances being reported incorrectly. You don’t want your
debt to appear more than what it is!
- Be aware that a
collection agency may report a delinquent account you have or
had, as well as the Creditor itself. Have the Creditor account
removed! You don’t have two delinquencies for that
amount, do you?
For more Be
Aware topics, tips, and real-life real estate experiences, please
order your copy of:
The
Be Aware of Real Estate Handbook Today!!
|
