Frequently Asked Questions
Is there really such a thing as credit repair, and is the information offered in your book legal?
How do I order my credit reports, and why do I need separate credit reports from each credit bureau?
I keep hearing about risk scores being used to make loan decisions. What exactly is a risk score?
Does this book apply to Canada?
I read that Experian no longer offers free credit reports to consumers. Is that true?
Is there really such a thing as credit repair, and is the information offered in your book legal?
There is no such thing as a quick fix, guaranteed, super clean overnight credit cleaning process. We use the term ‘credit repair’ more as a descriptive term that consumers can relate to. Your credit problems more than likely didn’t occur overnight and they won’t disappear overnight either. Even using the laws to clear off inaccurate information off of your credit report takes time. There is probably something on one of your reports that does not belong there and we can teach you to recognize and correct the problem, or in other words repair it. In fact, almost all credit reports contain some kind of errors. These errors may be attributed to mis-reporting on the part of the creditor, credit bureau, or in most situations, human error. You have probably heard the term that is used a lot in reference to computers, “garbage in, garbage out.” Simply putting it, a simple misspelling or typo error can go a long way when in comes to credit reporting. It is not the computer’s fault, it is the person who is operating the computer who is to blame. Needless to say, there is probably some outdated, misreported, mistaken identity, spelling or date error, somewhere on your credit report. We can help you find all of the errors a lot of people overlook and teach you the most efficient way for resolving your dilemma. It is like taking your car for a tune up and telling them to make it run as best as possible. This is what we consider repair. If they dropped a whole new engine in your car, that would be a different story.
We are NOT selling techniques on how to obtain new credit files or anything illegal. We are teaching you how to use the credit laws to your best advantage. If somebody is distributing private information on you, it had better be 100% accurate or they’re in big trouble. It is totally within your rights of the law to make sure that any information that is being sold about you is verifiably 100% correct. You therefore have the right to intervene into the processes of the credit bureaus and make them prove the validity of the information that they are selling about you, it is only fair. Our whole government is based on a checks and balances system. The president of the US has to follow this rule and the credit bureaus as well. Now, if they can’t verify something as being 100% correct how is it legal for them to distribute that information? It’s not, they have to stop distributing it and remove it from your file.Everything we teach in the book is totally legal and within the all realms of the law. When anybody goes to court they take a lawyer with them, why? Because they know the law and how to use the law to receive the most favorable outcome. Do you know the credit laws and what can and cannot be done within the full extent of the laws? We can help!
How do I order my credit reports, and why do I need separate credit reports from each credit bureau?
You can order your credit reports several different ways – phone, on-line (credit bureau web sites), or US mail. The most commonly used method is by using the following phone numbers:
Experian 1-888-397-3742 or 1-800-682-8957
Equifax 1-800-216-1035 or 1-800-685-1111
Trans Union 1-800-888-4213 or 1-800-916-8800
These toll free phone numbers can get you needed address and answers to any further questions as it pertains to obtaining credit reports. I must mention that the days of free credit reports are over unless you have verifiable financial hardships, or have been recently denied credit, insurance, or employment due to information acquired from your credit report. But there is good news for some of us in selective states like Colorado. Recent changes in laws require the credit bureaus to provide residents of some states with one free credit report from each credit bureau. Other changes are also in place that favor the consumers ability to easily and more efficiently deal with their credit. Please check with your local government to see if you are one of the lucky states that are following suit after Colorado.
If you don’t know it may come to you as a surprise that there are three major credit bureaus. Each of these credit bureaus is a totally separate business or entity, and therefore may have differing information on you as it pertains to your credit. So it is an absolute must that you get all three of your credit reports in order for you to get an accurate evaluation of what exactly is being distributed about you. It is also a very good idea to review your credit report at least once a year, especially if you’re getting ready to buy an expensive item such as a car or new home. Taking the time to ensure your credit report is accurate and complete could prevent your loan approval from being delayed if not denied.
Although my father and I have the same name (causing some of his credit information to appear on my credit report), we have different Social Security numbers. Why don’t you match credit information by SSNs instead of names?
A number of organizations — schools and universities, banks, hospitals, the military, the Department of Motor Vehicles, etc. — commonly use your Social Security number to uniquely identify you. Likewise, the SSN is an important piece of information to companies like Experian to identify a particular consumer in our database.
SSNs were introduced primarily for calculating an individual’s income tax and Social Security Administration benefits. They were not intended to be a universal identifier.
In credit reporting, the SSN is not as infallible as it might appear. First, not all consumers provide their number when applying for credit. Some consumers provide an incorrect number. Mistakes sometimes occur when a clerk enters the Social Security number into a computerized database. And many credit-active consumers living in the United States do not even have a Social Security number.
Still, the SSN is a very valuable piece of data and is part of the complicated process of matching all the available credit information in the databases of the credit bureaus to the correct consumer. The SSN is important precisely because many of the 260 million people living in the United States share similar names (or the same name, like you and your father), change names (like women after marriage) and move.
It is important for all consumers to provide complete identifying information — including middle initial, generation identifier (Jr., Sr., III, etc.), and their SSN — and to use it consistently in all credit relationships both when requesting new credit and when requesting a copy of their credit report.
To solve your immediate problem, Have all three of your credit reports in hand — with the accounts that are not yours marked – and call each of the credit bureaus to dispute the accuracy of the information. This will ensure your credit history is separated from your father’s.
Why is a credit card I haven’t used in years still listed as “current” on my credit report? And why does it count against me when I apply for credit?
In our everyday conversations, we use the word “current” to mean “now” or “at the present time.” In the credit industry, “current” and “current account” mean the consumer is making — or has made — payments on schedule.
In other words, “current” is the opposite of “delinquent.” It applies even when there is a zero balance, the amount has been paid off or an account is closed. Unless you specifically ask the lender or credit card issuer to close the account (cutting up the card doesn’t do it!), the account is still open.
If you are not using an account and don’t intend to use it in the future, it’s a good idea to close it. Request the credit grantor to report the account as “closed by consumer.”
Why does an unused account count against you? When calculating your debt-to-income ratio, lenders use the limit (not the balance) of all revolving accounts, and they consider all accounts, even those that haven’t been used in years. That’s because those accounts can be reactivated easily and charged “to the limit.”
Doesn’t the law allow me to add a statement to my credit report that tells my side of the story and explains the situation that prevented me from paying my bills?
The Fair Credit Reporting Act says you can add a “brief statement” explaining an item you have disputed but the lender has verified is accurate. The FCRA also says a consumer reporting agency can limit these statements to 100 words, provided it helps the consumer write a clear summary.
Statements are most effective when the situation is specific, such as: “I refused to pay for the sofa and returned it because the fabric was not what I ordered. The lender, however, refused to credit my account.”
Even when they agree that an item is accurate (and have not disputed it), many consumers still want to explain how a general situation — like unemployment or a long-term illness — has blemished their credit history. (For example: “I missed three payments on the sofa because I was sick for three months last year and could not work.”)
Experian goes beyond the law and adds these “general” statements when consumers ask us to add them.
We advise consumers, however, to think about the effects of such a statement. If a potential employer reviews your credit report, do you want him or her to know about your three-month illness and possibly question your long-term health?
The best time and place to explain a lapse in your credit history is on a credit application when applying for credit. That way, you can decide when to share personal information and with whom you share it.
I keep hearing about risk scores being used to make loan decisions. What exactly is a risk score?
A risk score is a statistical summary of the same information that is described in words and figures on your credit report.
Risk scores (also known as credit scores) are created by computerized risk “models” that use a series of mathematical steps to assign numerical values to various pieces of credit information. The result is a number — the risk score — that predicts your future payment pattern.
Just about every company that grants credit uses a model or multiple models in its credit granting decision because risk scores help them objectively and accurately review an applicant’s credit report.
Risk scores help consumers because they:
are objective and precise, allowing credit grantors to treat all consumers consistently and fairly
eliminate individual biases and judgments from the credit granting decision
result in faster, more accurate credit decisions
help you get “instant credit” at retailers and car dealers
speed your loan application process for new homes
reduce your cost of credit by empowering lenders to make the best, most efficient decisions
I moved back to the United States after living overseas for many years. Why is it so difficult for me to get credit now?
Your difficulties demonstrate the advantages of the unique credit reporting process in the United States, where information is objective, automated and transferable nationwide. Worldwide, only Canada has a similar online, automated, third-party credit reporting system maintaining a broad base of positive and negative information.
Obtaining a credit history established by an individual overseas is time consuming and costly. It involves manually verifying not only the accounts an individual claims to have established, but also — to get a complete and objective picture — checking for accounts the individual may not identify to the credit grantor.
In addition, in most countries the information is simply not available because it hasn’t been maintained or because of restrictive privacy laws.
As an expatriate, you may previously have had a credit history in the United States. You may find it useful to give potential lenders additional information (like previous addresses, even if more than five years old) to help them find older credit information in Experian’s database.
You also should explain your situation to potential credit grantors. Companies that grant credit will consider your circumstances in their decision.
Just as we suggest to consumers seeking credit for the first time, expatriates can apply for credit at the bank where they have established another financial relationship such as a checking or savings account. Gasoline and retail cards are typically easier to obtain and help build a credit history. You also can get a secured credit card or have a relative or friend cosign.
Does this book apply to Canada?
Although this book may be very instrumental in helping Canadians resolve some credit dilemmas with the techniques and methods taught, it does not at this point pertain to Canada and it’s differing credit laws. we are working on a revised edition that will be son coming out that will address the credit concerns of Canadians.
I read that Experian no longer offers free credit reports to consumers. Is this true?
As required by the federal Fair Credit Reporting Act, Experian continues to offer free reports to consumers who have been denied credit, insurance, employment or rental housing based on information in an Experian credit report.
Beginning no later than October 1997, as required by revisions to the FCRA, Experian also will provide free credit reports once a year upon request to consumers who certify they: are unemployed and seeking employment; are receiving public welfare assistance; or believe their credit file contains inaccuracies resulting from fraud.
However, effective March 1, 1997, Experian no longer offers annual complimentary credit reports to consumers. Since Experian voluntarily began the complimentary credit report offer in April 1992, it processed and mailed about 5 million complimentary reports.
Experian decided to end the program because of competitive disadvantages and changing consumer concerns.