My credit report shows my credit rating: Myth.
Technically, there is no such thing as a credit rating.
Credit reports are only useful by their ability to accurately reflect a consumer’s credit history and ability to make repayment of debts on time.
My credit report and credit score are the same thing: Myth.
Your credit report is a listing of demographic information, credit accounts and your payment history.
A credit score is a point system that the majority of creditors use to determine the amount of risk involved in lending you money - will you repay it according to the agreed terms?
Credit scores can make a significant difference in the interest rate terms you’ll be offered for future credit.
My credit score is a set number: Myth.
Your credit score is re-calculated each time your credit report file is accessed.
Credit scores are determined by placing a point value on your payment history, how much you owe on all your accounts compared to the credit available to you,
length of your credit history, amount of new credit you have sought, and the types of credit you are using.
Savvy consumers need to
understand the reality of
credit reports.
Only myself and creditors I allow may view my credit report: Myth.
Not only do creditors view your credit report but also insurance companies, employers and landlords.
Your private information can and is sold to others by the credit bureau without your permission or knowledge.
Examples of these activities are the many credit solicitations you receive in the mail each month.
As long as I make my payments on time I don’t have to worry about my credit report: Myth.
Experts now recommend you review your credit report on a least an annual basis.
Careful monitoring of your credit report is often the first indication available that you have been a victim of identity fraud.
Credit reports contain only accurate information: Myth.
Some estimates say ninety percent of all credit reports contain inaccuracies.
As many as 80% could have errors that would negatively affect a credit score.
The types of errors surveys and searchers have found on credit reports include errors of personal identifying or demographic information,
such as name, address, social security number, inaccurate reporting of consumers’ account status and data, such as limit, balance, or
terms, improper or inadequate purging of outdated information, missing information or data and information or data from the credit reports of other consumers.
Even more serious errors include accounts incorrectly marked ‘delinquent’, credit accounts listed that do not belong to the consumer,
and reports listing public records or judgments that belong to someone else.
The prevalence of errors on credit reports has sprouted numerous companies that will review your credit report for you (at a premium price, of course) and report any errors found to you.
Many of these companies are off shoots of the same credit reporting agencies that list the errors on your credit report, creating lingering questions about conflict of interest.
There are companies who will fix my credit: Myth.
A search of the World Wide Web also shows a number of companies that claim they can remove derogatory information from your credit report for you or correct errors, again, at a premium price.
As a smart consumer you should recognize that as the scam it is and that some of these companies make recommendations to their ‘clients’ that encourage dishonesty and in some situations, illegal behavior.
First, only you can complete the process to correct errors on your credit report, and secondly, accurate information (even if it is derogatory) will not be removed from your credit report.
The only remedy for accurate derogatory marks on your credit report is time and an improved repayment history.
My ‘bad’ credit will drop off of my credit report after 7 years: Myth.
While there are some parts of your credit report that will be deleted after 7 years, this does not apply to all listings.
There are many different factors and limitations that affect the length of time listings remain on a credit report.
More important to your ability to get future credit, is the debt resolved or paid in full?
CAF assists clients to
monitor their credit report
on an annual basis.
I must hire a company to review and monitor my credit report: Myth.
Credit Advisors Foundation reviews and monitors your credit report as part of your debt management program service.
What does CAF look for during a credit report review?
Within the first six months of your program CAF conducts an initial review of your credit report.
At that time, your credit report is compared to your debt management program application.
Any differences or inaccuracies we note may be reported to you to confirm our findings.
(Are the accounts yours? Were you aware of them? Should they be included in your DMP?)
If these differences or inaccuracies are determined to be errors, CAF Client Care can walk you through the process necessary to request corrections by the credit reporting agencies.
After the initial review, CAF completes periodic reviews of your credit report.
During these reviews any changes or new differences may also reported to you and we will again assist you in completing the process to correct any determined errors.
Credit report reviews are just one more advantage you receive in your debt management program with Credit Advisors Foundation.
By including this credit report review service, the average savings for our clients’ is $60 to $100 annually, as well as, lowering your risk of identity theft.
Learning how to complete a credit report error complaint can save you time, and stress and lower the amount of interest you pay on future credit.
All of which, assists you to maintain diligence in monitoring your credit report yourself.
