Be prepared: your credit report may contain some surprises.
Examine it thoroughly. It might show, for example, an open
store credit card that you have not used in years or even a
current account that is closed. It is also very possible that
the report may contain errors.
In the first instance, close any open credit cards you no longer
use.
In the case of errors, contact the reporting agency immediately
to correct them. Although the agency must investigate and respond
to your dispute within 30 days, the process of actually correcting
the errors could take months. (This is another good reason
to examine your credit reports on a regular basis - at least
once a year.)
>Contact all three major credit reporting
agencies
>Handling derogatory information in your credit report
>Avoid “Credit Repair Company” fraud
>Summary
Contact all three major credit reporting
agencies.
Although you may have received your report from one agency — Experian®,
for example — you want to make sure each agency corrects
its information on you. Use the information below to order
your credit report from the three major credit bureaus, then
review it carefully and, if it contains discrepancies, take
the necessary steps to update it for accuracy:
If you happen to be in the process of applying for a loan,
report any errors you have found in your credit report immediately
both to the reporting agency and to your prospective lender.
Back To Top
Handling derogatory information in your
credit report
If your credit report reflects any flaws in your past history — such
as a late payment on a loan or credit card — make notes
of them. Be prepared to offer a reasonable explanation for
these lapses when you wish to approach a lender.
If your debt situation has gotten out of control, you probably
do not need a credit report to tell you that. Nevertheless,
there are ways to remedy the situation - make your life more
comfortable and improve the status of your next credit report.
Here are some tips:
- Contact your creditors. Ask about affordable payment
plans. Most creditors will be reasonable about helping
to find a solution for you.
- Eliminate your high-interest credit cards. UNFCU members
should investigate transferring their high-interest credit
card balances to a low interest UNFCU VISA® Credit
Card.
today to
get started.
- Consolidate your debt. If you are a homeowner, consider
a UNFCU EquityLoan or EquityLine. The EquityLoan is for
a specific amount of money, at a competitive fixed rate,
with terms of up to 20 years. The EquityLine — which
lets you access your credit line by writing a cheque — offers
flexibility and a competitive rate.
Click here to
apply now
Back To Top
Avoid “Credit Repair Company” fraud
According to the United States Federal Trade Commission,
consumer debt in the United States is at an all-time high.
This environment has encouraged unscrupulous businesses to
present themselves as “Credit Repair” firms. For
a fee, these institutions promise “quick fixes” which
may be dangerous at best, and illegal at worst.
Often, all these “credit repair” companies offer
in return for money is advice to file bankruptcy. Bankruptcy
is considered to be the absolute last resort in resolving debt
issues. Since it stays on a credit report for ten years, a
bankruptcy is obviously not the route to take in repairing
your credit.
Other companies promise to “clean your credit report” — for
a fee, of course — enabling you to obtain a mortgage
loan, personal loans, or even employment. The truth is they
are unable to accomplish these promises. Often these companies
will, after taking your money, simply vanish. Or, they may
advise you to obtain an “Employee Identification Number” from
the Internal Revenue Service (IRS) and use it to “create
a new credit report” by using it instead of your social
security number.
If you live in the U.S., be aware that making false statements
on a credit application, misrepresenting a social security
number, and obtaining an employee identification number from
the IRS under false pretenses are all federal crimes.
Regardless where in the world you reside, remember that there
are no “quick fixes” to repairing a credit report.
It takes time, effort, and a plan to repay your debt.
Back To Top
Summary
Review your credit report on a regular basis for accuracy.
Repair your credit by immediately reporting any errors to the
three major credit reporting agencies, as well as to any lender
you may be currently working with. If your debt seems out of
control, contact UNFCU and we will help you take steps to eliminate
high-interest obligations, arrange for affordable payment schedules,
and investigate debt consolidation solutions. Simply contact
UNFCU Loss Prevention via or
telephone at (212) 338-8100, extension 5258 and let us help
you take control of your debt. Be aware that significant errors
on your credit report may indicate unauthorized use of your
credit card, fraud, or even “identify theft.” Be
sure to read Protecting Your Credit to
find out more.
Back To Top
|
