A credit report is a document which shows information about how you have been handling your financial matters. This report contains information about where you have worked, lived, if you have ever filed for bankruptcy, and most important, how you handle your bills. Credit Reporting Agencies (CRA’s) or Credit Bureaus compile this information and give it to any financial institution, or business that you are approaching in matters financial. It is important that you maintain a good credit history. So that you can easily get access to credit services from financial lenders.
It is important that you review your credit report periodically. You can see whether there are inaccuracies, or omissions. If you are considering buying a house. You must carefully go through your credit report and identify areas that need to be corrected. Once you make an application for a loan, the report is given to the lender, and any mistakes may cost you the loan. If you want a clean application process, then you should go through your credit report in advance.
The Fair Credit Reporting Act (FCRA) gives you the right to query any inclusion that will damage your credit report, when applying for credit facilities, seeking employment, or buying insurances. The businesses will contact at least 2-3 credit bureaus and ask for your credit report. The better the report, the easier it will be for the business to interact with you. Although there are smaller credit bureaus all over the nation, the main ones are Trans Union, Experian, and Equifax.
How to Handle Your Credit Report?
If you are denied any credit facilities due to a bad credit report, then the FCRA gives you the right to demand the credit report that was used to evaluate you. And you can contact the agencies that gave out the report to clear your credit history. You are given 60 days to examine your report, and make any complaints to the credit bureau.
The first thing that you should do when clearing your credit report, is to make a complaint in writing to the credit bureau in question. You should include all documents that support your claims of errors. You must clearly identify the items that you are disputing, state the facts and explain why you are disputing the entries. And you should keep a copy of your dispute letter for your own records.
The credit bureau is required by law to investigate the claims usually within a period of 30 days. If they consider the dispute to be frivolous, they will let you know and stop any investigations. The credit bureau must supply the CRA with a report of their investigations, and give you a copy. If your claims are credible, then they will amend your credit report accordingly. And submit a new report to the company that requested the report in the first place. This way, you can re-apply for the credit facilities you applied for, and hopefully. With an amended report, your application may go through successfully.