The REAL free credit report, and free disputing (credit card, loan, debt)

[UseJeff]

I'm fairly new to this forum, however I've already answered a fair amount of questions about credit.

This information I'm going to mention is described in much more detail on my website, assuming you need more information.

Getting to the point... I have seen a ton of advertisements for your "Free credit report", online and on TV. Most of these people trap you with a monthly service before you get your report. They ask for your credit card, and then you automatically start the service. You get a free month or two of the service, at which point you will start to be charged on your credit report. To not be charged, you have to jump through hoops of cancelling said service.

Now, to get the actual truly free credit report, no credit card required, go to the website actually sponsored by the 3 major bureaus.

www.annualcreditreport.com

Here is some advice regarding your free credit reports. This has to do with disputing items, or just checking your report to be sure it's correct.

1. If you just want to do a checkup and be sure it's correct, here is what I recommend. Once you input your information, you are moved to a page where you can choose to view either one, two, or all three reports from the 3 bureaus (Transunion, Equifax, Experian). Because you're just doing a checkup, I recommend only viewing one every 4 months. (note this on your pop up calendar if you use outlook). This way your in essence keeping tabs on your credit report 3 times a year, instead of only once.

One note about this, not every creditor reports to all three bureaus, so you may miss a mistake if it's on a different bureau. I still think it's best to do it once every 4 months though. I will mention common mistakes you'll find on a report after the discussion about disputing.

2. If you want to use your free reports to dispute incorrect items, or simply try and use the dispute loophole to remove an item that should be there. At this point you will want to select all three bureaus. You will go to each bureau one by one, and once you view your report, you can dispute items for each online.

Take your time while you do this, because each site is different, and can be confusing. I also recommend printing everything, and be sure to make note of any username and passwords you create. It's also beneficial to give them your e-mail address, as the notification that the findings are complete will be e-mailed to you. Granted, expect to receive monthly newsletters from them trying to sell you something, but this isn't a major spam because they won't sell your info.

Most common mistakes on credit reports:

1. Incorrect high credit limit:
A fair amount of credit card companies report an incorrect high credit limit on your account. The claim they do this because it makes you less of a valuable target for competitors who will try and "gain" your business. While it's smart to try and stave off the competition, they are in fact slapping you in the face and telling you they do not care for your well being at all.

The companies that do this typically report your high credit limit as the highest you have ever charged on your card. Now here is the problem. Your credit score is effected by the amount of credit used (balance) vs. the total available credit. It is considered on a per account basis, and also your credit balance vs lmit as a whole. So you are hit twice essentially. Now, if any revolving debt balance is more than 50% of the high credit limit, this can hurt your score. The more a card is maxed out, the worse the hit.

This applies to general cards as well, but an additional nasty hit has to do with any 30+ day lates you may have. No one wants to be late, but it does happen. A late on a credit card with a balance close to the high credit limit hurts your score much worse than a late on a card with a low balance vs credit limit. In theory, having a 30 day late on a maxed out credit card with a $200 balance and $200 limit could hurt your score worse than a late on a card with a $20,000 high credit limit, and a $5000 balance.

2. Collection accounts and activity dates:

Per the FTC (federal trade commission) and the Fair Credit Reporting Act the last activity on an account will be considered to be 180 after the last payment was made.

Government statutes have things falling off your credit at 7 years (10 years for bk). Now, this is based on the activity date of your account. Many collection agencies report inaccurate illegal activity dates in order to do two things. First, the account stays around longer. Second, the newer a collection appears, the more it hurts your score.

If this has happened to you, you can go to Federal Trade Commission - Home and call the consumer hotline to file a complaint, and have it investigated. Unfortunately, they probably won't do anything unless there are multiple complaints against the same company.

You can however send any proof you have, and dispute this information by mailing the 3 major bureaus. Disputing something like this online is possible, but your dispute claim is limited, and you may not be able to give all the info you want.

One way to prevent general mistakes on your credit, is to always apply for credit using your full name and middle initial. Force the person taking said application to read back your full name, and address if you are on the phone. Feel free to tell them that you are doing this to prevent mistakes. If it's an in person written application, be sure convey concerns about mistakes, and ask them to be careful while typing the informaton into their software where they pull your report.

I hope this information has been worth the read...

If you find this info valuable please thank me by reputation. I plan to be around the forum for some time, and definitely want to help people.

[renriq02]

I think you mean that they do NOT report a credit limit.
I have been doing credit repair for over 10yrs, and have never seen do this.
Capital One, and AMEX are notorious for not reporting the credit limit.

When this occurs the balance-to-credit limit ratio becomes unrated.
They will look at payment history and other factors.

If you look at a personal or mortgage tri-merge you will see the spots for Current Balance, High Balance, and Credit Limit.

Also, there are ways of deleting those collections within 3days for free (Rapid Rescore) Normally, a customer will go to a mortgage broker to have this done, but there are other ways to do it...and for free!

Originally Posted by UseJeff

I'm fairly new to this forum, however I've already answered a fair amount of questions about credit.

This information I'm going to mention is described in much more detail on my website, assuming you need more information.

Getting to the point... I have seen a ton of advertisements for your "Free credit report", online and on TV. Most of these people trap you with a monthly service before you get your report. They ask for your credit card, and then you automatically start the service. You get a free month or two of the service, at which point you will start to be charged on your credit report. To not be charged, you have to jump through hoops of cancelling said service.

Now, to get the actual truly free credit report, no credit card required, go to the website actually sponsored by the 3 major bureaus.

www.annualcreditreport.com

Here is some advice regarding your free credit reports. This has to do with disputing items, or just checking your report to be sure it's correct.

1. If you just want to do a checkup and be sure it's correct, here is what I recommend. Once you input your information, you are moved to a page where you can choose to view either one, two, or all three reports from the 3 bureaus (Transunion, Equifax, Experian). Because you're just doing a checkup, I recommend only viewing one every 4 months. (note this on your pop up calendar if you use outlook). This way your in essence keeping tabs on your credit report 3 times a year, instead of only once.

One note about this, not every creditor reports to all three bureaus, so you may miss a mistake if it's on a different bureau. I still think it's best to do it once every 4 months though. I will mention common mistakes you'll find on a report after the discussion about disputing.

2. If you want to use your free reports to dispute incorrect items, or simply try and use the dispute loophole to remove an item that should be there. At this point you will want to select all three bureaus. You will go to each bureau one by one, and once you view your report, you can dispute items for each online.

Take your time while you do this, because each site is different, and can be confusing. I also recommend printing everything, and be sure to make note of any username and passwords you create. It's also beneficial to give them your e-mail address, as the notification that the findings are complete will be e-mailed to you. Granted, expect to receive monthly newsletters from them trying to sell you something, but this isn't a major spam because they won't sell your info.

Most common mistakes on credit reports:

1. Incorrect high credit limit:
A fair amount of credit card companies report an incorrect high credit limit on your account. The claim they do this because it makes you less of a valuable target for competitors who will try and "gain" your business. While it's smart to try and stave off the competition, they are in fact slapping you in the face and telling you they do not care for your well being at all.

The companies that do this typically report your high credit limit as the highest you have ever charged on your card. Now here is the problem. Your credit score is effected by the amount of credit used (balance) vs. the total available credit. It is considered on a per account basis, and also your credit balance vs lmit as a whole. So you are hit twice essentially. Now, if any revolving debt balance is more than 50% of the high credit limit, this can hurt your score. The more a card is maxed out, the worse the hit.

This applies to general cards as well, but an additional nasty hit has to do with any 30+ day lates you may have. No one wants to be late, but it does happen. A late on a credit card with a balance close to the high credit limit hurts your score much worse than a late on a card with a low balance vs credit limit. In theory, having a 30 day late on a maxed out credit card with a $200 balance and $200 limit could hurt your score worse than a late on a card with a $20,000 high credit limit, and a $5000 balance.

2. Collection accounts and activity dates:

Per the FTC (federal trade commission) and the Fair Credit Reporting Act the last activity on an account will be considered to be 180 after the last payment was made.

Government statutes have things falling off your credit at 7 years (10 years for bk). Now, this is based on the activity date of your account. Many collection agencies report inaccurate illegal activity dates in order to do two things. First, the account stays around longer. Second, the newer a collection appears, the more it hurts your score.

If this has happened to you, you can go to Federal Trade Commission - Home and call the consumer hotline to file a complaint, and have it investigated. Unfortunately, they probably won't do anything unless there are multiple complaints against the same company.

You can however send any proof you have, and dispute this information by mailing the 3 major bureaus. Disputing something like this online is possible, but your dispute claim is limited, and you may not be able to give all the info you want.

One way to prevent general mistakes on your credit, is to always apply for credit using your full name and middle initial. Force the person taking said application to read back your full name, and address if you are on the phone. Feel free to tell them that you are doing this to prevent mistakes. If it's an in person written application, be sure convey concerns about mistakes, and ask them to be careful while typing the informaton into their software where they pull your report.

I hope this information has been worth the read...

If you find this info valuable please thank me by reputation. I plan to be around the forum for some time, and definitely want to help people.

[UseJeff]

The balance to credit limit isn't unrated... while they may not report a high credit limit, it doesn't mean it won't be rated or won't have an effect on the report.

This is from an MSN article as well:

"Capital One refuses to report its customers' credit limits to the three major credit bureaus. Instead, the bureaus use the highest balance a customer has charged as a proxy for the limit.

As a result, the customers' all-important "debt utilization ratios" -- the portion of their available credit these borrowers are actually using -- can appear artificially high. That can depress borrowers' credit scores, the three-digit numbers lenders use to help determine creditworthiness."
Weird stuff that hurts your credit - MSN Money


The rapid rescore is indeed a beneficial tool to repair credit very quickly. It is also quite expensive, about $120 per line item. The main key though, is that you need to have solid proof that there is a mistake. The only reason to ever use this service is if you're in the middle of a transaction, and the score will improve the rate or allow them to qualify. This doesn't apply to the disputing "loophole" that can allow a person to dispute an item regardless of if it should be there or not. Basically the working mans way to fight back at creditors who don't care enough about us to report things accurately.

[renriq02]

I have used many different credit pulling companies, as i'm sure you have.

AMEX doesnt report limits also (there is no preset limit) and yet it doesnt affect the score.

When you pull a mortgage credit report, you will notice what i'm speaking of.

You can call the actual agencies and they will tell you it's not affecting the score. Most mortgage credit reports have the credit limit listed on the right side. Credco for example reports high balance, current balance, and on the right side you will see the credit limit.


Rapid Rescore is free if the customer disputes themselves.
They require NO PROOF, and can remove items within 3business days.

as stated in FTC laws.....you will find it under expedited request.

Rapid Rescore cost money if you go through the lender, but it's free for consumers disputing it. It's not magic...it's there, and most mortgage brokers/borrowers dont even know it exists. The key is if the customer applied for a mortgage can they do the free rapid rescore.

Originally Posted by UseJeff

The balance to credit limit isn't unrated... while they may not report a high credit limit, it doesn't mean it won't be rated or won't have an effect on the report.

This is from an MSN article as well:

"Capital One refuses to report its customers' credit limits to the three major credit bureaus. Instead, the bureaus use the highest balance a customer has charged as a proxy for the limit.

As a result, the customers' all-important "debt utilization ratios" -- the portion of their available credit these borrowers are actually using -- can appear artificially high. That can depress borrowers' credit scores, the three-digit numbers lenders use to help determine creditworthiness."
Weird stuff that hurts your credit - MSN Money


The rapid rescore is indeed a beneficial tool to repair credit very quickly. It is also quite expensive, about $120 per line item. The main key though, is that you need to have solid proof that there is a mistake. The only reason to ever use this service is if you're in the middle of a transaction, and the score will improve the rate or allow them to qualify. This doesn't apply to the disputing "loophole" that can allow a person to dispute an item regardless of if it should be there or not. Basically the working mans way to fight back at creditors who don't care enough about us to report things accurately.

[UseJeff]

I didn't realize that there was an expedited request for consumers. I'm assuming it's caused by them being in the middle of a large financial transaction, like a mortgage. I start to get pretty cross eyed when going through the FTC's website, and all their crap. I wish they were more aggressive on bad collection practices. Then again, I suppose they are inundated with complaints...

Credco could very well be different than the reports I've used in the past. The ones we use show a high limit. In addition, even if they didn't it would only hurt your score worse because it would create a worse than maxed out position. It would also affect your overall debt to limits scoring as well.

[renriq02]

i have spoken with all 3 bureaus and they say it doesnt affect your score.

i use Credco, Advantage, CBCinnovis, credstar,
I work with a lot of lenders and they sometimes only take their credit provider's credit reports.

check out my interest...and you will see how it's done.

i'm not done with it yet...but you will see some eye-openers about repairing credit history.

Originally Posted by UseJeff

I didn't realize that there was an expedited request for consumers. I'm assuming it's caused by them being in the middle of a large financial transaction, like a mortgage. I start to get pretty cross eyed when going through the FTC's website, and all their crap. I wish they were more aggressive on bad collection practices. Then again, I suppose they are inundated with complaints...

Credco could very well be different than the reports I've used in the past. The ones we use show a high limit. In addition, even if they didn't it would only hurt your score worse because it would create a worse than maxed out position. It would also affect your overall debt to limits scoring as well.

[Karla with a K]

Ok being the credit "geek" that I am, I had to do some research on this "rapid rescore" thing. I couldn't figure out how someone had come up with a new "loop hole" to make "bad credit" go away.

What amazed me even more is that people will pay, as one of you stated, $120 per tradeline to get this done(good thing banker reminded everyone you can do this yourself for free). Reminds me of back in the late 80's early 90's when those "credit repair" places were multiplying faster than you could count.

It is important to note this will not remove late pays,COs,BKs etc. that are accurately being reported which is the main thing that brings scores down.
That was the one thing I was wondering about. Because only time will make these "go away"

One site even had this disclaimer

"Let's be clear. Rapid Rescoring will not make derogatory information magically disappear. Nor should it. What it will do is quickly correct tradelines that contain outdated or erroneous information. In fact, CBS News reported on October 13, 2004 that four out of five credit reports contain errors. A rapid rescore strategy can correct these errors in just three days which often results in a higher score. And the corrected, higher score is the right score."

The site also went on to say that if there was available cash to bring accounts current or below the 50% of the credit limit and by getting receipts of proof that payments were made.

So this will only work if
1. there is incorrect or out date information on the credit report.
2. there are funds available to bring things current or under the 50%

So this "rapid rescore" will make what normally takes 30 to 45 days (depending on how often the creditor sends in info the the CB) now take 3 to 5 days.

Incorrect info is one reason why I "preach" to people how important it is to check your credit reports at least once a year and "fix" the things that are wrong.


karla

[renriq02]

You might have YEARS in credit history, but it seems you're inexperience in 'disputing' credit items.

It's relatively EASY to remove items on your credit report.

I have done it many times for many of my clients for FREE.

Rapid Rescore is done within 3business days not 30-45days.
This is provided under the expedited process listed under the FTC.

I have done this for HUNDREDS of borrowers for the last 10yrs.

It's fast & simple.

EVEN Legitimate POSITIVE items can fall off your credit report.

If i was charging a person, then I'm sure anyone would question me, but I'M NOT.

[TimtheGuy]

Originally Posted by banker0679

You might have YEARS in credit history, but it seems you're inexperience in 'disputing' credit items.

It's relatively EASY to remove items on your credit report.

I have done it many times for many of my clients for FREE.

Rapid Rescore is done within 3business days not 30-45days.
This is provided under the expedited process listed under the FTC.

I have done this for HUNDREDS of borrowers for the last 10yrs.

It's fast & simple.

EVEN Legitimate POSITIVE items can fall off your credit report.

If i was charging a person, then I'm sure anyone would question me, but I'M NOT.

What is the process for a borrower to do the rapid rescore themselves? I have never heard of a free rapid rescore. I was always under the impression that if the borrower requested the corrections, that it would take 30-60 days. ??

Thanks.
Tim

[renriq02]

the credit bureaus will not help you with the free rapid rescore if you havent applied for a mortgage.
They will ask for the mortgage lender's name, loan officer's name, and their phone number.
They will also check the credit inquiries to make sure you have applied for a mortgage.

Originally Posted by TimtheGuy

What is the process for a borrower to do the rapid rescore themselves? I have never heard of a free rapid rescore. I was always under the impression that if the borrower requested the corrections, that it would take 30-60 days. ??

Thanks.
Tim