Negatives on Credit Reports

Things that are considered negative on a credit report are bankruptcies, judgments, repossession, past due payments, public records, and unpaid tax liens.

Each negative report stays on your credit history for different amounts of time. Bankruptcies are on a credit report for 10 years, unpaid tax liens 15 years, every thing else is on a credit report for 7 years.

Positives on Credit Reports

One great thing about credit reports is when positive information is reported it stays on forever. There is one exception of this and that is when you have an account that you paid and closed it will only show for 10 years.

How to repair your credit

There are a lot of agencies that claim to be able to repair your credit over night. This is impossible. Repairing your credit score happens with time.

If you keep making your payments on time and keep the promises made to your creditors, eventually your credit score will get higher. Also as time goes by the negative information will fall off, also helping your credit score.

Removing Information on Credit Reports

To remove any information that you feel is incorrect you need to write to the consumer reporting company with proof of what is incorrect. They will evaluate it and then decide whether it is incorrect or correct.

Information for credit reports are gathered by many different consumers credit reporting companies. When sending in a letter to have information removed it has to be sent to the company that reported that particular information.

Laws behind Credit Reports

There have been laws passed to protect consumer’s credit reports. One of the laws is that you are entitled to a free copy of your credit report from the three following credit bureaus, Experian, Trans Union, and Equifax. You can receive a free copy once every 12 months. This way you can make sure everything is correct.

To receive your free copy you can contact Experian at 888-EXPRIAN (397-3742) or www.experian.com, Trans Union at 800-916-8800 or www.transunion.com, and Equifax at 800-685-1111 or www.equifax.com.

Another law passed is called The Fair Credit Reporting Act (FCRA). This act helps to make sure that the consumer reporting companies are fair and accurate. It also helps in protecting the privacy of the information given to the consumer reporting companies.

There are amendments added to the FCRA to continue to set guide lines for the consumer credit reporting companies. These amendments also put responsibilities on the companies that gather the information and report it to the consumer reporting companies.

What is on a Credit Report

First of all they have all of your identification information, your employment and income, and all of the previous places that you have lived.

They will have a history of your payments to your creditors. Whether you have paid them on time or been delinquent. It also shows if some one as checked your credit when you apply for a loan or credit card.

When an employer or landlord checks your credit history it will also show up on your credit report. And you will also see when you have had a bankruptcy or unpaid tax liens reported.

Credit Report agencies

There are three different credit report agencies Trans Union, Experian, and Equifax. You are entitled to a free credit report from each one of these agencies to contact them go to Trans Union: www.transunion.com or 800-916-8800, Experian: www.experian.com or 888-397-3742, Equifax: www.equifax.com or 800-685-1111.

It is a great idea to check your credit report at least once a year. If you are aware of what is on your credit report, it is easier to catch when there has been medical bills not paid by your insurance.

Insurance Companies

Most people are denied for a credit card, loans, or mortgage; because they had a medical bill reported that was not paid. Now days it takes the insurance companies so long to get a medical bill paid for that it is hard for the patient to tell if it has been paid or not. In fact most patients will just pay the bill so that it won’t reflect on their credit

This has become such a big problem that some states are starting to charge fines to insurance companies that go past the time period set that they have to have the medical bills paid by. The states that have pasted this law are New York, Pennsylvania, and Texas.

Knowing your Benefits

Other than just knowing what is on your credit report, another way to help keep your credit score high and your record clean is to know what the terms are on your health insurance. It is important to be familiar with what your insurance covers and what it does not cover.

By knowing and understanding you insurance it helps you to stay on top of your medical bills. You will know what you need to pay up front. This will intern help to keep your doctors from reporting to the credit bureaus.

Doctors

Doctors know days are quick to send their patients that are delinquent on the payments to collections. This makes it really hard on the consumer that wants to stay in good standing on their credit report. If the insurance company takes to long to pay their medical bill then it goes to collection and then in turn reflects on the consumer’s credit report.

Can you get a loan with an unpaid medical bill report on your credit report?

Some lenders will not even look at your application if you have an unpaid medical bill reported on your credit report. Fortunately there are some that will approve those with an unpaid medical bill as long as they have a good report with their other creditors.

There are some lenders you understand what happens with some insurance companies. They will take in account what the rest of your credit report looks like. They know that if you pay your bills on time to creditors that you have chosen to loan your money from then you will pay them also.

Avoid Unpaid Medical Bills

There are a few things that a consumer can do to avoid having an unpaid medical bill show up on their credit report. They can make sure the doctor’s office has all the correct information for your insurance. Make sure you stay in contact with the medical office and your insurance company.

What for the bills and look over them carefully. Don’t just assume that the insurance company has paid them. Also check to make sure the insurance company is not being charged double or for things that didn’t happen.

Perhaps you have had some rotten luck, or simply rotten payment habits in the past, and your credit report and therefore your credit worthiness has suffered tremendously for it. You believe you have what it takes to make all your payments on time and get your credit reputation back up to where it was before you got into this mess. After all, it has been seven years since you made your last mistake, and as far as you know, all of the mistakes that have been infesting your credit report during that time should be dissolved completely by now.

So let’s say you go to check your credit report. Much to your surprise and dismay, those payment mishaps are STILL on your credit report! What went wrong? What happened to all those stories you heard about how your credit report is wiped clean of your mistakes after seven years?

It is true, the negative items on your credit report SHOULD be erased after a certain amount of time… in most cases, seven years. There are some things, however, that can hinder this removal. In order to know how to fix the problem, you have to know what the problem is first.

1. They Could Have Simply Forgotten

You may be paying close attention to your credit report, but the credit bureaus, or the people who come up with your credit report, may not be watching so closely. To them, yours is just one in thousands and thousands of credit reports waiting to be changed and updated every day. If, after seven years, your credit report is not cleansed of your misdeeds, you should call the major credit bureaus, (Equifax, Experian, and TransUnion) and let them know.

2. Extended Punishment

Sometimes, believe it or not, creditors will try to extend the amount of time that the negative items are left on your credit report. How do they do this? Actually, they use YOU.

On your credit report there are dates next to the negative items. These dates represent the time when the seven year period of shame begins. If you are almost done with the seven years, look at your credit report and suddenly feel guilt for all those mishaps, call up the creditor and make the payment, you may have just extended that period of shame ANOTHER seven years.

Actually, this is sometimes done by faulty creditors. Many of them will often try to hurt your credit report more by extending the amount of time that the negative items appear on it. THIS IS ILLEGAL! When the seven years is extended, make sure you know WHY before you just give in.

Besides any of the possible interruptions previously mentioned, after seven years, the bad records on your credit report should be removed after seven years. There are a few exceptions, like bankruptcy, that can last for up to ten years. The good thing about it is that all of the bad reports will go away eventually, but all of the positive items can stay on your credit report for good.

People talk about credit cards, credit limits, credit history, credit scores, and credit reports all of the time. But what do all of these terms mean? Who decides what your credit score is and what is on your credit report anyway?

People may understand what their credit scores are, and what comes up on their credit report, but perhaps they do not understand who puts it all there. Of course YOU are responsible mainly for what score you get and what goes on your credit report based on your credit history, but who takes all that information, puts it into an equation, evaluates it, and scores it?

The people who are responsible for calculating your credit score and updating your credit report are part of what is called a credit bureau. These are also called credit reporting agencies. But still, who are these credit agencies, what all do they do, and how does that affect you and your ability to buy on credit?

Credit Bureaus

The three main credit bureaus are Experian, Equifax, and TransUnion. They are the primary sources that provide a person’s credit report. They are who you go to when you want to get a copy of your credit report, and they are who you talk to when you have an argument concerning possible errors on that report. They also calculate your credit score, and all of this is based on your credit history, or the management skills you have developed or lacked within the time you have held a credit account.

You’re Being Reported

Whenever you do business using credit, the lender you got the credit or loan from, like a bank, credit card company, or department store, is connected to the credit bureaus. They report, to the credit reporting agencies, your practices concerning your credit card or loan payments, how far in debt you are, how close to the limit you are, and how much extra you may be paying on your bills each month. They report anything and everything that you do, whether good or bad, that will portray how well you can handle credit.

Three for Free

Credit reporting agencies allow you to access your credit report once a year for free. This means that you can get a report from all three of the major bureaus for free once a year, therefore allowing you a total of three free credit reports per year. This is a more recently added right given to credit holders, and has only been in effect nationwide for a few years.

It’s easier to understand your credit scores and your credit report once you understand who organizes them. It is also helpful to know where to go if you have a problem with either of these. Do not be afraid to take any problems you have to these credit reporting agencies, because since they have so many people and reports to worry about, they cannot fix your problems without you helping them to recognize those problems.

These days, people talk about credit cards, buying on credit, getting loans, requesting credit reports, credit card fraud, credit scores, and etc. But what do all these terms mean, and why are they so important to people in today’s world? What is a credit score, anyway?

Your credit score is pretty much the base of all of the terms previously listed. It is what will determine how much buying power you have in the market today. Your credit score is what determines how much money you will pay to spend the money that you do not have.

What is it?

A credit score is a number that is determined by a rather complex equation, based on your credit report. Your credit report is a detailed history of your credit spending habits. This report will tell credit bureaus how well you can manage credit, how quickly you can pay your bills and get out of debt, and how far you will go before you hit the point of bankruptcy.

Your credit score is calculated by the three major credit reporting agencies, or credit bureaus, known as Experian, Equifax, and TransUnion. These credit bureaus, though they have the same job, will often have differing credit scores for the same person, because they may not all use the same equation. However, if they show a difference, it will not be one big enough to affect, overall, your ability to get an open credit line.

What Does My Credit Score Determine?

Your credit sore will determine your ability to buy on credit, because it reflects how well you have paid back the money you have owed in the past. If you apply for a loan and get denied, it is most likely because you have a bad credit rating, and the lenders you applied with do not believe you have the ability to pay the loan back. If you apply for a credit card and not only get accepted, but get an over-the-rainbow amount of money that you could set as your credit limit, it’s probably because you have a great credit score, and the credit card company you applied with trust you with that huge amount.

What Does My Credit Score Affect?

Your credit score can also affect you when you are applying for a job. Often, your potential employers will check your credit score, with your consent, of course, before they agree to hire you. This is because they want to test your integrity, and a great way to do that is to see how well you have paid your bills and how far in debt you are. This can either be a bad thing, or a good thing, depending completely on your credit score.

It is amazing how much depends on your credit score. Managing your credit takes work, but it can, and has been done before. Your credit score is basically just a grading scale. If you have good spending habits, you will get a good grade on your report, and therefore giving you more opportunity.

It used to be that many people had no idea what their credit score was until someone else checked it because they bought something using a loan, or applied for another credit card. Often they never checked their credit scores because they did not have the means to do so, and sometimes it cost money that most people aren’t willing to spend. However, today just about anyone can ask to receive a credit report on the Internet, over the phone, or through the mail, and the best part is that everyone is entitled to this credit report for free up to three times a year!

Getting Your Free Report

Getting a free copy of your credit report is easy. You can simply go online, fill out the information they ask of you, and submit it. How you will receive your credit report, whether by mail or email, is up to the specific company that you are requesting your information from. The three main companies that most people request their credit report from are Experian, Equifax, and TransUnion, and you may request a free credit report from each of these companies for free once every year, therefore giving you the chance to view your credit score for free three times a year.

You may also check your credit report more than three times a year if you like. However, this will not necessarily be free. If you check your credit report more than once with any of the three major companies, you will likely be charged for it, and any other company may be very risky to give your personal information to.

Why Do You Need to Know?

Getting a copy of your credit report and knowing what your credit score is will be a huge advantage to you. If you monitor it regularly, you will be more likely to detect any kind of fraud that someone else has committed on your credit. It will also help you to track your own credit, how your credit spending affects your credit score, and allows you to see what you can do to improve your credit attaining possibilities.

Risks

There are some risks that you must be wary of when it comes to getting your credit report. Probably the most dangerous, though most convenient, way to get your credit report is online, but only if you are not careful about where you go. Getting your credit report through the mail or on the phone can be just as hazardous if you are not cautious of who your sources are.

You are generally very safe when getting a credit report with the three previously mentioned reporting companies. They have a very well known reputation of legitimacy in the United States. There are other companies, however, that may be setting you up for identity theft, or who are trying to steal your money. Just make sure you know that the website and the company you are requesting from are perfectly safe before you give them your personal information.