Credit

What is actually in a credit report?

Information maintained by credit bureaus falls under three main categories:

1. Personal

Name
Address
SSN
Employment History
Spouses Name
Date of Birth

2. Credit/Account Information

Creditor
Type of account
Terms
Amount of the original debt or credit limit
Balance outstanding
Payment History

3. Public Records

Lawsuits
Judgments
Bankruptcies
Arrests/Convictions
Tax Liens
Marriages
Divorces
Legal Name Changes

A credit report is not necessarily a complete credit history. For example, some card issuers do not supply credit bureaus with any information on cardholders' accounts, claiming that this would be a violation of the customers' right to privacy. Mortgage lenders seldom supply information to bureaus, because creditors assume that those obligations will be met even if you are behind on others. Most credit grantors are primarily interested in the latest 12- or 24-month reporting period. However, a bankruptcy can stay on a credit record for up to 10 years and debts that a creditor writes-off as "uncollectable" can remain for seven years.

How do I find out what my credit report says?

You can contact the agencies directly by using the links above. Or you can write to the bureaus at the following addresses:


Equifax	Experian	Trans Union
P.O. Box 740241	PO Box 9595	P.O. Box 403
Atlanta GA 30375-0241	Allen, TX 75013-0036	Springfield, PA 19064
(888) 997-2493	(888) 397-3742	(800) 888-4213

What exactly is bad credit?

There are numerous types of credit report problems that can cause a lender to reject your application for a loan. Such problems include:

missing a credit card payment,
defaulting on a prior loan,
filing for bankruptcy in the past seven years or
not paying your taxes.
judgment filed against (perhaps for non-payment of spousal or child support)

How do you clear up bad credit?

There is no fast and easy way to repair damaged credit that took months or years to occur. The law allows negative information to appear on an individual's credit record from 7 to 10 years. The first step is to check your existing credit record.

Anyone can obtain copies of their own credit report free of charge if they have been turned down for credit recently. For a fee, people can request copies of their own credit report online or by phone from the three major credit reporting agencies: The bureau also should provide instructions on how to read the report and how to dispute any inaccuracies it contains. If the credit report is correct, take care of any outstanding delinquent obligations first.

If you get a copy of your credit report and find an error in it, call or write the credit bureau to correct the mistake. The procedures are usually explained in a letter that accompanies the report or appear on the report itself. Once it receives your complaint, the credit bureau will check with the creditor who reported the information. If the creditor realizes that it made a mistake, the blemish will be removed from your record and the credit bureau will send you a letter verifying its removal. But if the creditor still disagrees with your version of the facts, you have the right to add a 100-word statement to your credit file that tells your side of the story.

Here are some sample letters to help you get started on your credit repair.

What can I do if I am denied credit?

If your application for a credit card or loan is rejected, the federal Equal Credit Opportunity Act requires that the institution that rejected your application provide a written letter that explains why credit was denied. They must also include the name, address and phone number of any credit bureau from whom they requested your credit report. The telephone number given for the bureau will probably play a recorded message telling you how to go about getting a copy of your credit report. Write the bureau within 30 days of your denial and request a copy of your report. It must be provided free of charge. If the credit report contains errors, the bureau can explain how to have the mistakes corrected.