How to Get Your Free Credit Report and Keep A Check On It

CEO & President Y. English shows how deleting one simple negative phone bill added 144 points to a clients credit.

You can get your report online as well as through mail and you can then use it for credit repair. For getting it online, you need to use the Annual Credit Report website. This is where you can get the reports for free from one or all of the credit agencies. You need to make sure that you provide accurate information in this website so that you get the correct report. This website would ask you for your personal information including name, address, date of birth and SSN as well. Once you have supplied this information, then you can select which reports you want (whether from one credit bureau or all three of them)?

All your credit information and negative activity gets reported to the three credit agencies which are TransUnion, Experian and Equifax. It is good practice for you to do regular credit repair on a periodical basis so that you can correct any discrepancies in the report by raising it as a dispute with associated documentation. The FCPA act makes it free for any person to get his credit report from any or all of the credit agencies once a year. You need to make sure that you make full use of this and get your reports on an annual basis and study it carefully for any discrepancies.

Once you have specified this, you will then be redirected to the appropriate website of the credit bureau and there you can view your credit report. Make sure that it is your report that you are viewing and also study it very carefully for any items which may appear as discrepancies. It is very much possible that the report from the 3 agencies would be different from each other as it is not necessary for any creditor to report the activity to all 3 agencies. He can choose to report it to only one agency and this can lead to discrepancies across the 3 reports. This is ok as long as the information is true.

There might be a couple of other alternatives to the annual credit report website and if you feel like it, you can get the report from there as well. The reports are necessary for credit repair and so it is better that you get the report in any way that you like.

You can also choose to receive the free report by mail. For that, you need to visit the FTC government website or call their toll free number and place a request to get the annual credit report request form. Once you have received the form, fill up the details in there. As in the online form, this form would also require you to fill up your personal information like your name, address, DOB and SSN. Make sure that all this information is correctly specified and then you need to mail it to the Annual Credit Report Request Service located in Atlanta. After this is done, you have to then wait for you to receive the free credit report by mail.

Whichever way you choose to receive the report, make sure that you study it and mark off the items that contain wrong information so that you can do credit repair. Raise these as a dispute to get it corrected so that you can maintain a good correct credit score and avoid the hassles that may arise later.

Piggybacking, meant to jump-start credit, but look to build your own as well

Thinking about becoming an authorized user on another person's credit card account?

Yes, becoming an authorized user -- also called "piggybacking" -- on someone else's credit card account can boost credit scores of people who have no credit histories of their own or bad credit records. But if the primary account holder's credit profile begins to deteriorate, the piggybacker rides downhill, too, losing points off her credit score and maybe being turned down for loans so it is best to use them to build your credit score up and get your own credit as primaries. That downside risk is becoming more important, especially for young people. That's because becoming an authorized user on a parent or other adult's account has become one of the few alternatives for people under 21 to get credit cards, since the advent of the Credit CARD Act of 2009 in 2010.
Among other things, the law bans credit card companies from issuing cards to anyone younger than 21 unless parents or other adults co-sign on the accounts. Young adults are able to obtain credit cards in their own names only if they can show they have the means to repay the card loans. Having a co-signer means both the young adult and the parent are responsible for repaying the debt. It's different from being added to a card account as an authorized user or piggybacker, in which the primary account holder is solely liable for the bill.

Drilling mom and dad on their finances
Consumer advocates and credit counselors say it's a good idea for young adults to ask their parents or other adults a few questions before piggybacking on their accounts. Put bluntly, the important questions are:

• "How is your credit, Mom and Dad?"
• "Are you making your payments on time?"

" ... Students have to know more than they are likely to know about their parents' finances," says Gail Hillebrand, an attorney and consumer advocate with Consumers Union, the nonprofit publisher of Consumer Reports magazine. She acknowledges quizzing parents about their financial health can be difficult conversations, "especially if mom and dad are writing checks for tuition ... It's an awkward situation."

Getting off a 'piggyback'

Young adults need not be saddled with their parents' bad credit records if they are authorized users on accounts. They can call the credit card issuer to request immediate removal from the account. The primary account holder's payment history will then no longer appear on the young person's credit report. But the bad news is that young adults will again have no credit record if they haven't established some credit history of their own.

She notes parents may hide their true financial situation out of embarrassment or in an attempt to shield their hard-studying children from extra stress.
"If you suspect that's an issue, it probably means you don't want to be an authorized user on that account anymore," says Hillebrand.
How 'piggybacking' works
Credit card issuers report both positive and negative payment information about an account to the three major credit reporting agenies: TransUnion, Equifax and Experian. With some exceptions, the account's entire payment history appears on the credit reports of both the account holder and any authorized users on the account with notations indicating whether they are authorized users. Thus, an authorized user's credit score could be hurt if the primary account holder begins to miss payments.
The good news is that the major card issuers allow authorized users to call or write to request that their names be taken off the accounts. In most cases, the change takes effect immediately on the credit card account, but may take longer to be removed from the piggybacker's credit report.

How credit reporting bureaus handle authorized user accounts
"The name changes typically occur in real time," says Sam Wang, vice president of public affairs for Citi. "We suggest that the cardholder contact us to reconfirm the change in case they have questions."

Different rides for piggybackers
Credit bureaus' reports inconsistent ...
Credit bureau	All of main account holder's information reported on authorized user's credit report?
Equifax	Yes
TransUnion	Yes
Experian	No (positive data only)
... As are the resulting credit scores
Credit scoring model	Considers authorized user accounts in credit score?
FICO	Yes
VantageScore	No
TransUnion proprietary score	No

Experian spokeswoman Maxine Sweet says it could take 30 to 60 days from the time the credit bureau receives the request for information from the primary cardholder's account to no longer appear on the authorized user's credit report. "It will be updated with the credit reporting companies after the next reporting cycle and will no longer be reported for that individual," Sweet says.
Experian, however, will allow authorized users to request that information be removed sooner, according to Sweet. She says people who want the account information removed quickly can contact Experian. The data will be removed only from Experian's report -- not the two other reporting agencies. Consumers are still advised to contact the credit card issuer and request removal from the account to ensure that the issuer will no longer send information about the authorized user to all three credit bureaus.
Experian accentuates the positive, eliminates the negative
Not every credit reporting bureau treats authorized user information the same. Experian -- unlike TransUnion and Equifax -- does not include negative payment information on the authorized user's credit report.
"Experian does not report the account for an authorized user if there are missed payments," says Experian's Sweet. "So, young people do not have to worry about having their credit ruined by mom and dad if they do not have responsibility for the account."
She adds: "A bankruptcy would only be reported on the individual who filed for bankruptcy. Any negative condition we do not put on the authorized user's report."
How credit scores factor in authorized user accounts
According to Equifax spokeswoman Jennifer Costello: "Equifax reports information on the account that is sent to us by the creditor whether it is an individual, joint or authorized user account."  Steven Katz, director of consumer brands for TransUnion, adds: "The history of the account (both positive and negative) will appear on the file for an individual reported as an authorized user on that account."
Effect on credit score
Credit scores are generated by taking snapshots of consumers' credit reports from each of the three major credit bureaus. When deciding whether to approve a mortgage, car or credit card loan, lenders may consider credit scores generated from one or all of the bureau reports. Some lenders may retrieve all three scores, toss out the highest and lowest scores and use the middle score. How lenders use credit scores varies based on the lender and type of loan.
As for how piggybacking can affect the authorized user's credit score, according to Craigs Watts, spokesman for FICO, the company that produces the most widely used credit scoring model, FICO, factors in all information (both negative and postive) reported by creditors when determining an individual's credit score.
"If the account has been reported as delinquent or has a high balance relative to its credit limit, the FICO scores of both users will likely be lower as a result," Watts says.
VantageScore handles it differently
The VantageScore, a less used credit scoring model developed by the three credit bureaus, handles authorized user credit scores differently.
"TransUnion's proprietary scoring models and the VantageScore do not factor authorized user accounts into the scores they generate," according to Katz. That means a young person would neither benefit from nor be penalized by their parents' credit records if lenders use the VantageScore to assess their creditworthiness.
Thus, someone who is an authorized user and is applying for a loan from a lender who pulls the Experian credit report to generate a credit score may have a higher score than if the lender used his or her TransUnion or Equifax reports to generate the scores. And, the scores may vary, depending on which scoring model the lender chooses to use.

Decline the ride: Rules of major card issuers for removing authorized users
Credit card issuer	How to remove authorized users from accounts	How long does it take?	Who can make request?
American Express	Write or call	Up to 24 hours after request is received	Either primary cardholder or authorized user
Bank of America	Write or call	Immediately	Either primary cardholder or authorized user
Capital One	Write or call	Immediately	Either primary cardholder or authorized user
Chase	Write or call	Immediately	Either primary cardholder or authorized user
Citi	Write or call	Immediately	Either primary cardholder or authorized user
Wells Fargo	Call and then put request in writing	Not final until written request is received	Either primary cardholder or authorized user
To reach a credit card issuer, call the toll-free number listed on the back of the card. Source: CreditCards.com research, January 2010.

Back at square one
If the primary account holder's credit starts to tank, and the young adult has to request removal from the account, this could leave him or her back at square one with no credit history of his or her own. What should they do then? Credit counselors advise young adults to consider getting secured credit cards -- which may allow them to build credit histories by using money they put into an account. Instead of borrowing money from a credit card issuer to make purchases, they are borrowing and repaying their own money. Payment information on secured credit cards are often reported to the credit bureaus.

More than having a good credit score, young people need good financial habits and a keen grasp of the value of patience.

-- Craig Watts FICO spokesman

However, because the new credit card law limits credit cards issued to people under 21, young adults won't be able to obtain these cards on their own after Feb. 22, 2010, it's unclear whether secured cards are an option.
FICO's Watts cautions young adults that there is no quick fix to good credit and building a good credit history takes time.
"The point and purpose of adding someone (or of being added) to a credit card as an authorized user or co-signer should be access to credit, not manipulation of one's credit history or credit rating," according to Watts.
"Parents can provide coaching about credit to their older children in addition to access to credit," Watts says. "More than having a good credit score, young people need good financial habits and a keen grasp of the value of patience. Cultivating those traits should be goal No. 1 for card users whether primary or authorized users. Trying to manipulate one's score without having those traits is a prescription for frustration."

Groundbreaking Good News For Consumers In Agreement With The CRAs

There was a “groundbreaking” agreement reached between the New York Attorney General and the three major credit bureaus, Experian, TransUnion and Equifax (the “CRAs”). If you do not want to read the 47 page agreement, the multi-page press release or watch the 31 minute YouTube clip, I will break it down for you concisely below.

1) Handling Disputes

Under the agreement, the CRAs will:

• conduct an investigation into the dispute you submit to them, pursuant to standards already imposed by the Fair Credit Reporting Act (the “FCRA”).
• employ trained personnel to handle the disputes and
• not simply rubber stamp the dispute as closed if a creditor “verifies” through an automated system.

In fact, the employee at the CRA will have the “discretion” to resolve the dispute. This is potentially a huge advantage for consumers and the goal of accurate reporting. Very Important !!!!!! Leverage.

2) Medical Debt

If you are human and have lived in the United States for a few years, you probably have medical collections in your credit file (and they are potentially erroneous). Under this new agreement, CRAs will:

• wait 180 days (that’s 6 months) before reporting medical related tradelines on your credit report.

This will allow you to challenge or pay the item and clear it up before it damages your credit rating.

3) Access to Free Credit Reports

Under the FCRA, you are entitled to 1 free credit report per year, only from annualcreditreport.com (this is the only official source for the free credit report). However, there are thousands of credit report websites out there, burying annualcreditreport.com from being discovered by you. The agreement makes the annualcreditrepair.com site more “visible” from the CRAs’ websites.

4) From 1 free report to 2 free reports

The free report referenced above was limited to 1 per year. Now, under the agreement, you get two per year.

5) No reporting of debt derived from predatory lenders (New York only)

The idea of preventing the reporting of debt derived from predatory lending (such as payday loans, etc.) is great. Unfortunately, for consumers that do not live in New York, this aspect of the agreement does not apply to you.

6) “Furnishes” must investigate and work with “work groups”.

I’m not going to go into this one, because I see it as great idea on paper, but will end up causing more problems than it purports to solve.

7) Media Campaign (New York only).

The agreement forces the CRAs to participate in an educational media campaign, public service announcements, etc. However, only in New York.

Conclusion:

Overall, this is great news for consumers (like you), in the real world vs. “feel-good legislation” that ultimately hurts consumers and protects CRAs. Most of our customers need credit repair prior to buying tradelines from us. Since agreement has taken effect, consumers will be able to purchase from us much sooner.

Credit Mistakes vs. Inaccurate Reporting.

 
Credit mistakes originate in many ways. To pretend that making a credit mistake before the age of 30 is newsworthy is more laughable than newsworthy. Nevertheless, a new study by Credit Karma as cited by CNBC suggests just that… 68% of consumers are likely to make a “credit fumble” before the age of 30. While this may be true, and obvious to anyone, the implication is less than laughable. Yes, people are likely to make credit mistakes. But, this does not account for the totality of credit issues in an individual consumer’s credit reports.

Do credit mistakes come from consumers?

If you’ve ever applied for or used credit, you know that it is possible to make a mistake. You could miss a payment, you could get a medical collection, etc. There’s no question that consumers can make credit mistakes. So yes, consumers can make credit mistakes. However, that’s not the focus of this article. Let’s focus on both sides of the fence, not just harping on the “68%” who have had a credit fumble.

Do credit mistakes come from credit bureaus?

You may think a multibillion dollar industry is devoid of mistakes. And if you do think this, you’re wrong. The credit bureaus are sued more often than the Obama administration. The credit bureaus were sued so often that the government created multiple laws regulating the way in which credit information is reported and corrected. In fact, many studies have showed that these mistakes (some reporting that as many as 79% of consumer credit reports contain errors) have misplaced some consumers into subprime markets.

Do credit mistakes come from creditors?

Similar to the credit bureaus, creditors also are the cause of credit mistakes and consumer credit reports. Clark Howard recently reported that consumers were being taken advantage of by legal proceedings. You can read the article here, but they were essentially filing lawsuits hoping that you did not respond and getting default judgments against you in order to avoid all the legal requirements of collecting on debts and reporting them accurately to the credit bureaus.

Conclusion.

We all have a responsibility to ensure that we take our financial obligations seriously. And when I say “all,” I am talking about you, the credit bureaus, creditors, bureaucrats, judges, etc. So, while the CNBC article and the credit karma survey are technically correct that 68% of consumers have a credit fumble before the age 30, I’m more concerned with the other side of the equation. That is, the fact that the remaining 32% also experience the negative effects of inaccurately reported credit information without having a credit fumble (thanks to the credit bureaus and creditors). Finally, the next time you hear what appears to be outlandish surveys, remember that there’s two sides to every story.

Things to know when renting an apartment credit wise

Credit scores have a substantial influence on your ability to do just about anything. Whether you want to apply for a new credit card or buy a car, your score will be evaluated for creditworthiness and it will determine whether you are approved for a loan, no matter the size. If you are worried about your current score, this can be quite troublesome – especially because so much depends on your credit history.
Applying to live in a new apartment is among the many things that require a decent credit score. If you are concerned about your eligibility for a place to call home, keep these tidbits in mind:

Consider getting a co-signer
If your credit is especially low and you don't see yourself improving it in the time, Apartment Guide suggested asking someone to co-sign for the apartment. Ensure he or she is either a close friend or family member who is willing to assume both legal and financial responsibility should you default on any payments throughout the duration of the lease.
You also want to ensure the person you select as a co-signer has good credit.

Understand additional factors considered 
While your credit score helps a landlord evaluate your ability to pay bills on time, there are other factors he or she will likely consider when looking over your apartment application. Apartment Guide indicated you will need to provide:

• Bank statements or pay stubs
• Letters of recommendation        
  
• Rental history 
• Previous employment 

If you can prove yourself as a trustable tenant with these items, you can increase your chances of approval without worrying about your credit score.

Offer a security deposit 
While many landlords already require a security deposit, you may want to consider offering more to increase your chances of approval. However, keep in mind there may be strict rules regarding deposits for some properties, so this should not be your only tactic.
Usually you want to offer a deposit in relation to the monthly rent charge. Consider offering between three and six months' rent in advance depending on your credit score and other factors that may keep you from qualifying for an apartment.

"Consider offering between three and six months' rent in advance."

Indicate your plan for staying current 
Since landlords view a low credit score as an issue because it may translate to late or missing rent payments, letting the individual know how you plan to stay on track may be beneficial. Write your own recommendation letter can be a great way to humanize your application and demonstrate that you can be a trustworthy tenant.
You can indicate that you will have rent payments automatically deducted from your bank account each month and funneled into an account the landlord can access. Ensure you have support from your employer up front when suggesting this solution.
Consider explaining the reason behind your lower credit score as landlords may be more sympathetic toward identity theft or medical debt than they would be for other types of debt, such as bankruptcy. If your credit score was negatively impacted due to a situation that was out of your control, provide bank statements or other documents that support your story.

Solve issues on your credit report 
If you have inaccurate negative items contributing to a lower score, address these right away. Working with a credit repair company is a great way to get the ball rolling. These experts have the experience necessary to build a case you can present to creditors and credit bureaus to ensure your financial history is accurately represented by your credit score.
If your credit score is low for reasons within your control, working on fixing those should be a priority – especially if it is noticeably impacted your ability to qualify for apartments.

Improve your score 
According to U.S. News & World Report, paying bills on time and in full is essential to bringing your score to a higher and more acceptable range. Fair credit usually lands somewhere between 600 and 690, while good credit is above 700.
When it comes to credit cards, keep your balance below 30 percent of your credit limit. However, keeping it below 10 percent is ideal.
After paying off your cards, avoid closing them as having the history of paying it off is actually better for the final calculation.

Know how apartment credit checks impact your score 
Whenever a hard inquiry occurs, your credit score is impacted. However, soft inquiries do not negatively affect your credit, according to the San Francisco Chronicle.
Unfortunately, when a landlord looks up your credit report, this is categorized as a hard inquiry. To protect your credit score, limit how many apartment applications you send out. However, keep in mind that these hard inquiries may not diminish your score too greatly.
Improve your credit score and know how to present yourself to a landlord when applying for an apartment, and you will thank yourself.