Credit Reports

Personal data is tied into your business identity

Your reports are critical factors that determine your credit scores, since the scoring system is based on the reported data gathered about you. Your personal credit data is tied to your business identity and provides proof of good character--a history of your ability and willingness to repay your debts.

One bit of data wrongly reported can reduce your credit score and your ability to get a loan at a good rate, or even to get a loan at all. So rather than waiting until your banker asks you questions about questionable data he’s seeing on his report, get your reports first so you can ID any problem areas and begin doing something about them.

It takes time

Checking facts and correcting errors on your reports will take time, probably far longer than you think. That’s because there are three major players reporting and compiling data about you. And with any data gathering system, errors are bound to creep in, or problems develop, especially in this era of identity theft.

The process begins by getting a copy of a credit report produced by the three major credit reporting agencies, Equifax, Experian and TransUnion, at least six months before you begin applying for your loan. Why? Because the process of disputing errors and getting them fixed can proceed at glacial speed despite the 30-day response deadlines provided by the new Fair and Accurate Credit Transactions Act.

Credit bureau contact data

Equifax

Equifax Credit Information Services, Inc

P.O. Box 740241, Atlanta, GA 30374

1-888-766-0008

Web site: Equifax

Experian (formerly TRW)

National Consumer Assistance Center

PO Box 2002, Allen, TX 75013

1-888-397-3742

Web site: Experian

TransUnion LLC

Consumer Disclosure Center

P.O. Box 1000, Chester, PA 19022

1-800-888-4213

Web site: TransUnion

Each report costs $8-$10. You may be able to get a free report from each agency because the Fair and Accurate Credit Transactions Act provides you one free credit report per year. But keep in mind that while everyone is entitled to a free report, the credit bureaus are in business and may respond to paying customers faster than freebie requests.

Check your data for accuracy

Check you report carefully to make sure that all the basic information is correct: Your name: spelling and middle initial are correct Ditto for your spouse if you are married or have been Social security number Date of birth Residential addresses Employers

Check reported negatives carefully for both accuracy and errors:

• Items that should have been removed as required: Bankruptcies (10 years), suits, judgments, tax liens, delinquent payment records, and other unfavorable information (7 years)
• Open accounts: when opened, activity reported, payment history
• Closed accounts: when opened and closed and at whose request
• Payment histories: make sure negatives are accurate and positives reported
• Inaccurate data: accounts not in your name or crossed account numbers or names
• Accounts wrongfully categorized: such as charge-offs instead of paids

If you find an error

If you find inaccurate data, contact the bureaus for information on their dispute process. Keep in mind that even with a 30-day response time required by law, simple errors may take months to correct and all three bureaus dealt with at the same time so negative data doesn’t magically reappear.

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