It
is essential to understand that Credit Bureaus are nothing
more than record keepers.
Simply
put, they keep a record of who has given you credit,
when they gave you credit, how much credit you are given
and whether or not you paid it back on time. When you
want to obtain credit cards, loans, financing for a
car or home, leases, apartments and sometimes even employment,
the lender or bank will check your credit to see your
financial history.
Credit
Bureaus are paid by the people who request your credit
file.
Credit
Bureaus are not run by banks, police or government, and
they have no legal power over you. So don't be intimidated
by them. They are the Credit Bureaus because they own
large computer systems capable of storing credit information
on everyone in the United States. However, because of
the tremendous amounts of information on their computers,
their method of storing information is very basic and
ridden with many errors. Since the bureaus have made so
many errors in the past, all Federal Laws regarding credit
information are very much in your favor.
The
Major Credit Bureaus
EXPERIAN
P.O.
Box 2002
Allen,
TX 75013
(888)
397-3742
Trans
Union Corporation
P.O.
Box 1000
Chester,
PA 19022
(800)
888-4213
Equifax,
Inc.
P.O.
Box 740241
Atlanta,
GA 30374
(800)
685-1111
Crucial
Strategies
The
only thing you legally need to supply the credit bureaus
for a copy of your report is your name, your social security
number and a legal mailing address (P.O. Box is a legal
address). If you don't want to chance harassment by creditors
at this time, it may benefit you to acquire a P.O. Box.
Did you know that many of the collection agencies are
owned by the credit bureaus?
NEVER
give credit bureaus more information than they need!
The
bureaus also have a right to request a copy of your social
security card, but only give a copy of the front. They
also may request a copy of something showing your address
if it is different than what is showing on the report.
Send them a billing statement that has your address. Do
not send them a copy of your drivers license as they request.
Remember these bureaus are information gathering companies
who sell your information, not only for credit, but for
promotional reasons.
Before
going any further, you should have copies of your current
credit reports. If you don't, you can use the sample letter
on the following page as a guideline for requesting your
credit reports from the 3 major bureaus.
The
Credit Bureaus must send you copies of your credit file,
free of charge if you were recently denied credit. They
will also provide you with one free copy each year. We
advise against having anyone you know get your credit
file for you because this creates an "Inquiry" on your
credit report, and makes it appear as if you are trying
to borrow money from somewhere.
If
you are in a hurry and cannot wait 5 to 10 days to receive
your credit report, simply look in your local Yellow Pages
under Credit Bureaus. If the Credit Bureaus have a local
office or affiliates in your area, you may go there directly
and obtain your credit file without delay.
When
you get the reports, there will be an information page
telling you how to read your report. And all three agencies
use different formats. The first step is to find all the
derogatory items.
Look
for collection accounts. Equifax lists them at the end
of the report, Trans Union mixes them throughout the report.
Experian gives a brief paragraph explanation of all accounts.
The collections may have a collectors name or account
number you do not recognize.
If
you don't recognize the account as being one of yours,
please don't assume that it is!
______________________________________________
How
to Request A Credit Report
The
following is a sample credit report request letter:
______________________________________________
January
1, 2001
The
Credit Agencies Name
P.O.
Box 8030
Layton,
UT 84041-8030
To
Whom It May Concern:
Please
send me a copy of my current credit file. The following
is my current identifying information:
John
K. Smith
1111
Perfect Lane
Collection,
NY 11234
I
have lived at the above address for the last three years.
I was born 3/2/51. My Social Security # is 111-222-3333.
Thank
You,
<Your
signature>
Print
your name
IMPORTANT:
Included along with this form must
be a proof of address. Show them a phone bill, utility
bill, billing statement from any major creditor, etc.
It must be a copy of something with your name and current
address. Also send them a copy of the front of your Social
Security card.
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