Credit

Credit

Credit Reporting

The three biggest credit reporting agencies, TRW, Equifax and Trans
Union, each have millions of credit files on consumers nationwide.
Their toll-free numbers are:

o TRW - 1 (800) 392-1122;

o Equifax - 1 (800) 685-1111; and

o Trans Union - 1 (800) 851-2674.

You can find other credit bureaus in your area by looking in the
Yellow Pages under Credit Bureaus or Credit Reporting.

If you apply for credit, insurance, a job or to rent an
apartment, your credit record might be examined. You can make sure
yours is accurate.

o Get a copy once a year or before major purchases. Your report
is generally free if you've been denied credit in the past 60 days.
Otherwise, the credit bureau can impose a reasonable charge.

o Read the report carefully. The credit bureau must provide
trained personnel to explain the information in the report. o
Dispute any incorrect information in your credit record. Write to
the credit bureau and be specific about what is wrong with your
report. Send copies of any documents that support your dispute.

In response to your complaint, the credit bureau:

o must investigate your dispute and respond to you, usually within
30-35 days; information that is inaccurate or cannot be verified
must be corrected or taken off your report; and

o cannot be required to remove accurate, verifiable information
that is less than seven years old (10 years for bankruptcies). If
you are dissatisfied with the results of the re-investigation, you
can have the credit bureau include a 100-word consumer
statement, giving your version of the disputed information. You
also can contact the source of the disputed information and try to
resolve the matter.

If there is an error on a report from one credit bureau, the same
mistake might be on others as well. You might want to contact the
three major bureaus, as well as any local bureau listed in the
Yellow Pages of your telephone book.


Credit bureaus sometimes sell your name to banks or others who want
to send you offers for credit cards or other forms of
credit. If you don't want your name included on such lists, write
or call the three major credit bureaus and tell them not to release
your name.

Credit Repair

You might see or hear ads from companies that promise to "clean up"
or "erase" your bad credit and give you a fresh start. They charge
high fees, usually hundreds of dollars, but do not deliver on their
promises.

If you are thinking of paying someone to "repair" your credit,
remember this:

o Negative credit information can be reported for seven years (10
years for a bankruptcy).

o No one can require a credit bureau to remove accurate negative
information before that period is up.

o There are no "loopholes" or laws that credit repair companies
can use to get correct information off your credit report. o No
credit repair company can do anything you can't do for yourself.
(See the section on Credit Reporting, page 19.) o A "money-back
guarantee" does you no good if the company has gone out of business
or refuses to make good on its refund
promise.

o The only way to "repair" bad credit is by good credit
practices over a period of time.

Some credit repair companies promise not just to clean up your
existing credit record, but to help you establish a whole new
credit identity. Remember, it is illegal to make false
statements on a credit application or to misrepresent your Social
Security Number. If you use such methods, you could face fines or
even prison. Beware of any company or method that:

o encourages you to omit or lie about bad credit experience when
you apply for new credit;


o tells you to use a new name or address or a new number, for
example, an Employer Identification Number (EIN), in place of your
Social Security Number in applying for credit; or

o says it is legal to establish a new credit identity.

You can rebuild your good credit by handling credit responsibly.
You might want to contact a Consumer Credit Counseling Service
(CCCS) office. This is a non-profit organization that will provide
help at little or no cost to you. For a CCCS office in your area,
call 1 (800) 388-CCCS.