Credit Report Information

Specific information regarding your identification and financial history are contained in your credit report. Your credit report is often referred to as a 'credit file' or a 'credit history.' One of the underlying purposes of maintaining a credit report of your financial behavior is efficiency for the lenders when reviewing your credit history. This allows lenders to efficiently make decisions regarding whether or not to lend you money or extend you a credit account. Your credit report typically contains four specific pieces of information.

Federal Law, including HIPPA, prevent disclosure of certain medical information typically related to mental, physical, or behavioral health conditions. Even though the credit bureaus do not collect this specific information, they will report the names of data furnishers which report your payment history, i.e., "Regional Hospital." The data displayed on the report regulated to medical payment information. Your report will also include any consumer statements made at your request.

Bankruptcy filings usually appear on your credit report for up to 10 years; unpaid tax liens remain up to 15 years; other public records may appear for up to 7 years. Information found on the public records, such as overdue child support, may be included on your report depending on the laws of your particular state.

Credit reports include specific account information, such as the credit limit, loan amount, balance, monthly payment pattern and history, as well date the credit line was opened. Additional information such as the names of joint account holders and co-signors may also appear on your report.

Positive, Active credit reporting information may appear on your report indefinitely, while negative items and information tend to appear for up to 7 years.

Inquiries by creditors who have viewed your credit report information will also appear on your credit history. Please be aware, that often times creditors pull your credit report without sufficient authorization, which does penalize your credit score. The Fair Credit Reporting Act, allows your active creditors to view your information without prior approval so long as they have a permissible purpose. The definition of permissible purpose is not clear and this often leads to numerous abuses.

The major credit bureaus, Experian in particular, do provide your information to creditors inquiring for the purposes of extending a pre-approved credit offers. They claim this does not impair your ability to obtain credit. However, these 'policy makers' at the credit bureaus have never had to pay more money for a car loan based on small problems with credit.

The personal information found on your credit report includes your name, current and former addresses, phone numbers, social security number, date of birth, and employment information.

When you formally dispute the items found on your credit report, or file what is called, a "Statements of dispute," this should be placed on your record by the bureaus. Disputes should also be reported by your creditors and will drop off your report only once the dispute is settled.

Any disputes between you and the creditor regarding the acocount status shoul d appear on your credit report. The Fair Credit Reporting Act (FCRA) requires that these statements are added at your request. Be careful regarding the language in any statement submitted as they will be posted to your account and will not exclude any confidential information you put in the statement.

Data regarding race, religion, medical history, political views, personal lifestyle choices, friends, family, criminal hisotrym and other unrelated and irrelavant information should also not be included. Information about your checking and savings accounts should not appear on your credit report.

Review Your Credit Report

Potential lenders always review your credit prior to approving your new credit card, car loan, or extension of credit. In many instances, particularly at car dealerships, they review your credit without your permission. Any review of your credit by a lender or creditor will have a negative impact on your credit score. Regularly checking your credit prior to and after applying for credit is the first step to maintaining a healthy credit score.

Regularly reviewing your credit report will help you budget and plan for the future, assure the accuracy of the information in the report, and ultimately save you money through lower interest rates on loans based on improved credit scores.

Consumers are entitled to 1 free credit pull from the three major bureaus every 12 months. There are numerous free credit report sites on the internet to help you pull your credit. However, your free credit report limits you to a small window when viewing and monitoring your credit report and score. We highly recommend purchasing a credit report plan and consistently viewing your credit on a regular basis for maximum results.

Correcting errors on your report

Consumers can challenge any inaccuracies that appear on their credit reports. Federal law requires that the three major credit bureaus, as well as your creditors, comply with your requests to check and challenge potentially inaccurate information.

Create a Positive Credit History

Essentially, the purpose of your credit report is top show potential lenders and creditors how responsible you have been managing your financial affairs over a specified period of time. Positive information can remain visible indefinitely, while negative information usually drops off after a certain period of time. The good news is that it is never too late to begin building and fixing your credit. There is no credit that cannot be saved given enough time, timely payments,and effort.Tips for creating a positive credit report and history include:

Print clearly when applying for credit

Providing your complete name on every application, along with complete, consistent, and accurate identification on your credit applications ensures a correct credit history from day 1. This type of accurate disclosure helps prevent inaccuracies, incomplete information, and the mixing of your credit report with other similarly named people.

Obviously, paying your bills on time, over time is the best strategy for improving your credit. Most lenders look at the most recent information on a report. Lenders may wiegh a recent history of on time payments (last 2-4 years) more heavily then older late payments. Paying on time is always the best option and strategy for healthy credit.

Living within your means is a sound philosophy that has withstood the test of time. Living within your means makes on-time payments much more likely.

If you begin to fall behind on your payments:

Contact your Lenders

Select lenders may work with you to set up alternative payment plans, schedules, and interest rates if you notify them that you cannot make the current payments. Proceed with caution as most lenders have no ethics and are always on the lookout to rip off unsuspecting and undereducated consumers.

Use Cash until you Matser Credit

Seeking out reputable professional services, such as attorneys, accountants, and financial planners can prove to be very helpful if you are not good at managing your finances. In many instances, the money you spend actually makes you money in the form of savings.

Educate yourself. Knowledge is King.

Don't Trust your Creditors or the Credit Bureaus

History tells us that creditors, collection agencies, and the credit bureaus themselves are not to be trusted. Contact myCREDITatty for all of your credit related issues.