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How To "Erase Bad Credit" |
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Page 2 of 4
HOW CREDIT REPORTING AGENCIES WORK
As credit increased throughout the country, there arose a great need to
issue reports concerning those who are NOT a good credit risk as well
as those who are CREDIT WORTHY! Because of this great need, credit
reporting agencies were formed several years ago. These agencies, known
as credit bureaus, receive information about consumers from banks, loan
companies, credit card companies, department stores, as well as from
other credit and lending sources. Credit bureaus earn their profits by
giving a computer printout showing a financial and credit profile of
any individual (such as you or I). These reports are requested by a
lender or an credit issuing firm from which you have requested credit.
Lenders will base their acceptance or rejection of your application for
credit based on the information about you in your personal credit
report. If your credit report shows that you have been reliable in the
past, then in most cases credit will be granted. What if your report
shows that you have NOT been reliable in the past? Perhaps you have
been like others in this country who have encountered circumstances
beyond your control which made it IMPOSSIBLE for you to meet your
credit obligations. What if your credit report shows that you defaulted
on a particular account or were constantly LATE making payments? This
of course can be most embarrassing, and usually leads to CREDIT DENIAL!
There are over 2,500 credit reporting agencies in the United States.
These agencies sell information about you to BANKS, DEPARTMENT STORES,
CREDIT CARD COMPANIES, LOAN COMPANIES, etc.
These credit bureaus keep on file information concerning you and your
credit, but they do not make any final judgements as to your credit
worthiness. The decision is up to the lender which you have dealt with
to decide and report to the credit bureau.
When you receive a copy of your credit profile, you may find some of
the following information in your report. Your occupation, place of
employment, income status, residence record, marital history, court and
arrest records, and most important, details on payments of your past
and present bills and loans.
You have the ABSOLUTE RIGHT to know what is in your consumer credit
report! Because it is YOUR personal credit file, you should want to
know what information the credit bureau is giving out concerning your
good name and your credit!
Most people have thought, and still think, that if they have an
unfavorable credit report or history that there is NO WAY to change it,
and if they want to obtain NEW CREDIT that it's impossible! DON'T
BELIEVE IT! You can change your credit report for the better. You can
change and correct any and all OUTDATED, or INCORRECT INFORMATION that
YOU choose! Remember, it's up to you! No one will do it for you! The
first step in correcting information on your report is to obtain a copy
of your personal credit profile.
{mospagebreak title=How to Obtain A Copy of Your Personal Credit Report)
HOW TO OBTAIN A COPY OF YOUR PERSONAL CREDIT REPORT
You have already learned how this credit information has been gathered,
rated and placed on file for credit reporting. You can obtain a copy of
this report just like a regular consumer would - after all, it's your
report.
There are many different credit reporting agencies in business today,
and there is one in every community. First, this discussion will be
limited for simplification, to one of the largest NATIONAL companies,
TRW, INC. Second, the discussion will include limited information
concerning contacting the LOCAL credit reporting agency in YOUR area.
To evaluate your personal credit profile, you must obtain a copy of it.
You may obtain a copy of your personal credit report by writing to:
TRW, INC., Post Office Box 271, Parsippany, New Jersey 07054. Include
the following inforrnation with your request:
1. Full Name
2. If married, include spouse's name
3. Your Social Security Number
4. Your present address/previous addresses within the past 5 years
5. Your date of birth
6. A check for $10 plus your SIGNATURE on the letter
You may wish to call your LOCAL credit bureau as well. Look in your
local yellow pages under Credit Reporting Agencies. Call up to find out
mailing addresses and fees to obtain your report.
By the way, if you have been refused credit within the past 30 days and
one of the reasons for the rejection was an "unfavorable" credit
report, you have certain rights under the law.
You first have the right to know which credit reporting agency was used
to obtain the report. You also have the right to CONTACT the agency and
find out exactly what criteria on your report has caused the rejection
You also have the right to obtain this information FREE OF CHARGE if
you have been denied credit WITHlN THE PAST 30 DAYS!
Because with almost every important financial move that you make a
credit report is involved, it is very important that you be concerned
with what your credit report says regarding YOU AND YOUR CREDIT!
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