The Things Everyone Should Know About Credit, But Don't (Part 1)
In my struggle to get my credit improved and handle my business, I've discovered a lot of unpleasant and unsettling things that people need to know. Now, if you know this stuff, please disregard :), but if you don't, read on. And keep in mind that to get any sort of professional info on these matters will generally cost you money. ;)
The three major credit bureaus are Equifax, Experian, and TransUnion. Each one maintains exhaustive records on consumers, including credit card balance records, personal histories, negative and positive judgments, etc. However, each one will have differing information. The credit agencies allegedly do not communicate with each other, so you have to personally contact each one in order to deal with any credit discrepancies or issues.
What I have found is that they do indeed communicate with each other regularly, but claim otherwise so that consumers will have to repeatedly pay money for their products. For example, each one offers their own "free" credit report, such as Free Credit Report, which is, in fact, owned by Experian. Coincidentally, the data from that particular agency will be the one that's most up-to-date in your "free report".
Now, let's say you have a report and want to look something up or dispute an inaccurate or outdated piece of information. You want to contact the credit bureau and get more info, or ask that the record be disputed. Well, what you may find is that you aren't actually talking to the credit bureau itself. What you may end up getting is a third party agency that is owned by the credit company, but isn't part of it. Their sites are "nested" within the main site and oftentimes will trick you into thinking you've signed up for the real thing, but don't be fooled. TrueCredit and Credit Expert, for instance, can sell you products, but they can't initiate disputes, provide updates, or answer questions. In my experience, the people they've got working for them are outsourced and don't know shit beyond what is put in front of them on the terminal screen.
Each credit agency offers a 1-800 number for questions, report requests, etc. But these numbers generally only work from 9 am to 5pm and are pre-recorded, so you can only get minimal amounts of info. To get regular updates or speak to someone who actually knows your situation, you have to suck it up and actually join one of the bureaus as a member. I chose Equifax, as they were the cheapest and had decent customer service. Amazingly, as soon as I joined, they were able to process a normally month-long investigation in two weeks. :) They also provided a "special" 1-888 number that ran 24-7.
If you don't want to deal with these yo-yos and want your genuine, accurate, up-to-date information, you have a few options, thanks to the Fair Credit Reporting Act. Here's a thumbnail description of what the FCRA allows consumers to do in terms of their credit report. Most pertinent is the rule that by 9/1/05, every U.S. consumer will be able to request one free, up-to-date copy of their report and gain unbiased information on asking questions. Here's a breakdown, courtesy of Consumer Affairs.
Next time we'll talk about what the heck a FICO score is and what it may mean to your financial planning.
The three major credit bureaus are Equifax, Experian, and TransUnion. Each one maintains exhaustive records on consumers, including credit card balance records, personal histories, negative and positive judgments, etc. However, each one will have differing information. The credit agencies allegedly do not communicate with each other, so you have to personally contact each one in order to deal with any credit discrepancies or issues.
What I have found is that they do indeed communicate with each other regularly, but claim otherwise so that consumers will have to repeatedly pay money for their products. For example, each one offers their own "free" credit report, such as Free Credit Report, which is, in fact, owned by Experian. Coincidentally, the data from that particular agency will be the one that's most up-to-date in your "free report".
Now, let's say you have a report and want to look something up or dispute an inaccurate or outdated piece of information. You want to contact the credit bureau and get more info, or ask that the record be disputed. Well, what you may find is that you aren't actually talking to the credit bureau itself. What you may end up getting is a third party agency that is owned by the credit company, but isn't part of it. Their sites are "nested" within the main site and oftentimes will trick you into thinking you've signed up for the real thing, but don't be fooled. TrueCredit and Credit Expert, for instance, can sell you products, but they can't initiate disputes, provide updates, or answer questions. In my experience, the people they've got working for them are outsourced and don't know shit beyond what is put in front of them on the terminal screen.
Each credit agency offers a 1-800 number for questions, report requests, etc. But these numbers generally only work from 9 am to 5pm and are pre-recorded, so you can only get minimal amounts of info. To get regular updates or speak to someone who actually knows your situation, you have to suck it up and actually join one of the bureaus as a member. I chose Equifax, as they were the cheapest and had decent customer service. Amazingly, as soon as I joined, they were able to process a normally month-long investigation in two weeks. :) They also provided a "special" 1-888 number that ran 24-7.
If you don't want to deal with these yo-yos and want your genuine, accurate, up-to-date information, you have a few options, thanks to the Fair Credit Reporting Act. Here's a thumbnail description of what the FCRA allows consumers to do in terms of their credit report. Most pertinent is the rule that by 9/1/05, every U.S. consumer will be able to request one free, up-to-date copy of their report and gain unbiased information on asking questions. Here's a breakdown, courtesy of Consumer Affairs.
Next time we'll talk about what the heck a FICO score is and what it may mean to your financial planning.