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How and When to Turn to the Credit Bureaus for Help
Instead of trying to get your VantageScore from the “Big Three” credit bureaus, let the credit reporting agencies help you where they’re strongest. If you have blemishes on your credit record, you may want to submit a letter to the three main credit bureaus – Experian, Equifax and Trans Union – that succinctly explains why certain derogatory information may appear on your credit report. “It’s a beautiful way to show your side of the story, right up front, proactively,” says Simons, the certified financial planner.
“Give a quick, non bleeding heart explanation about what has happened, why it happened and why it won’t happen again,” he recommends. “This makes you a better-looking prospective borrower.”
Finally, you should take some time to read up on and learn about a handful of other important rights under the Fair Credit Reporting Act (FCRA). You’ll find more details about the FCRA in Day 8 of Zero Debt. But briefly, among these rights granted to consumers are the following:
- You can dispute inaccurate information contained in your file.
Once you tell a consumer-reporting agency that something in your file is wrong, that agency must investigate the item in dispute, typically within 30 days. Ultimately, the credit agency must give you a written report summarizing the investigation. It must also provide you with an updated copy of your credit report if its investigation changes your report.
- Erroneous information must be corrected or deleted.But if something is correct, that data doesn’t have to be removed unless it’s outdated or can’t be verified.
- Only businesses with legitimate purposes can view your credit report – and then only with your permission. For instance, in considering your application, a creditor, employer, landlord, insurer, or other such legitimate businesses can obtain information about you from a consumer-reporting agency.
Next – Day 4: Order Your FICO® Score (Part 6)
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