Credit Reports - Errors Can Be Costly

Credit Reports - Errors Can Be Costly

in today?s society, we can?t function without credit. we need it to pay bills, borrow money, and to buy our homes and cars. a luxury of the current age is that credit is often granted easily and quickly, a result of years of automation and refining of record keeping. the glue that holds it all together is the credit report, a document made available to lenders by the three major credit bureaus. when an individual applies for credit or a loan, the lender can see the financial history of the applicant and make a decision quickly. but what if the information on that person?s credit report is wrong?

it turns out that more often than not, the information contained on a credit report may not be accurate. while most mistakes are simple ones, such as address problems, others are more serious. here are a few examples:

mistaken identity ? people with similar names or dates of birth are occasionally confused by the system, which can lead to credit reports that have completely erroneous entries. if you live in minneapolis and have lived there all of your life, it would be pretty shocking to see your credit report indicate that you have defaulted on your mortgage on a home in miami. sometimes it?s even worse than that; some individuals have had problems obtaining loans because their credit reports indicated that they were dead!

administration errors ? sometimes correct information gets entered incorrectly. a bill paid on time and in full might be recorded as only partially paid. an open account may be shown as closed. a loan paid in full may be recorded as in default. sometimes these are human mistakes and sometimes they are computer errors.

identity theft ? a problem caused when someone obtains your personal information and obtains credit or loans by posing as you. this is one of the most difficult problems to fix, and it often takes more than a year to even find out that you have been victimized.

the best way to fix these problems is to be vigilant. check your credit report often and report errors as soon as you find them. the longer you wait to report a mistake, the harder it will be to repair since paperwork and other documentation often gets misplaced over time. a few minutes spent check your report once or twice a year may save you hundreds of hours of work later.

?copyright 2005 by retro marketing. charles essmeier is the owner of retro marketing, a firm devoted to informational websites, including end-your-debt.com, a site devoted to establishing credit, debt consolidation and credit counseling.

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Credit Reports - Fixing Errors Can Be Difficult

most americans are aware that any time they try to borrow money, the lender consults with a credit report outlining the borrower?s credit history. these reports are prepared by the major credit bureaus ? experian, equifax and trans union, and the reports, along with the accompanying credit score, contain a distillation of the borrower?s entire financial history. armed with that information, the lender can make a decision as to whether granting a loan or credit would be wise. what many americans don?t know is that most credit reports contain errors. worse, it can take months or even years to correct those problems. in the meantime, the errors may prevent the borrower from obtaining a loan or credit.

a recent study shows that nearly four out of five credit reports contain errors. worse, roughly one in four contains an error that is serious enough to prevent the individual from obtaining credit or borrowing money. most of these errors are minor; they may simply consist of an incorrect address, phone number or perhaps date of birth. others can be more serious, such as listing a paid loan as being in default, or including information from another person?s credit history. these types of problems can be serious, as they can adversely affect the credit score of the individual involved. the lower the credit score, the harder it is to obtain credit or to get a loan at a favorable interest rate.

according to the fair credit reporting act, consumers are supposed to be able to fix these problems quickly, but it often doesn?t work out that way. sometimes, even if the person has proof that the information contained in the report is wrong, the bureaus are reluctant to correct it. a reason often given is that the bureaus would prefer to believe the lenders who provided the information rather than the consumer adversely affected by it.

the best way to avoid such credit report problems is to check your credit report regularly and to report problems or incorrect information immediately. you can do this, for free, by visiting http://www.annualcreditreport.com, a website that allows americans to obtain one free credit report per year from each of the three major credit bureaus.

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Tips on How to Apply for a Credit Card

deciding to apply for a credit card is not a decision you should take lightly. many stores try to get you to impulsively apply at the register, and you should never agree. credit cards can affect your financial situation for years so you should certainly think before you act. if you want to apply for a credit card, there are a few steps you should take beforehand.

evaluation

before you apply for a credit card, you should do an evaluation of your finances. get a free credit report and make sure everything is accurate. you will want to know what your credit score is so you will know which cards to look at when you apply for a credit card. if there is anything unusual or incorrect on your credit report, deal with it immediately. many people never look at their credit report, and therefore have no idea what may or may not be on it. it is important to clear up anything incorrect on your credit report before you apply for a credit card.

research

after getting everything strait with your credit report, you should begin researching. research cards that fit your credit score. make a list of important characteristics you want in a credit card. look for the best deals in several areas. before you apply for a credit card, you should make sure you understand everything about the card and the company?s policies. look at the interest rates, rewards programs, and other characteristics.

be wary of great introductory offers. when you apply for a credit card, many companies will offer you fantastic introductory deals. it is great to take advantage of these deals, however you should be sure that the terms won?t change unexpectedly after the introductory offer time period is over. for example, you will need to know what the interest rate will be after the offer before you apply for a credit card.

conclusion

once you find several credit cards with terms that you understand and like, categorize them by your choice. apply to one at a time. if you only need one card and apply to three, you run the chance of getting approved for all three. this will not only reflect on your credit report, but also give you the inconvenience of canceling two of them. so, be patient and wait for a response.

when you apply for a credit card, you are vowing that you will be responsible financially. deciding to apply for a credit card means that you know you will be able to pay the balance off in a timely manner. if you are not sure of your ability to pay, you should never apply for a credit card. be responsible, examine, and research before applying!

morgan hamilton offers expert advice and great tips regarding all aspects concerning credit cards. get the information you are seeking now by visitingapply for a credit card

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