The credit bureaus will use the information from your credit report to determine your FICO. This rating is a number usually between 300 and 850. This FICO Score rates how risky it is to lend to you. The higher the score, the less risk. You can look at your FICO score at www.myfico.com for free. Not maintaining a sound FICO score can become extremely costly. Those low scores can keep you from acquiring a loan or banish you to higher interest rates. They, in some cases, cost you employment. There is also the Vantagescore scoring technique. It uses the data from all three credit reporting companies. The nice thing about it is if the scores are not identical, then you know some false information is reported. These scores range from 501 to 900.
Other factors which may be considered in determining your rating.
Credit Image by <a href=”https://pixabay.com/users/esudroff-627167/?utm_source=link-attribution&utm_medium=referral&utm_campaign=image&utm_content=1399332″>esudroff</a> from <a href=”https://pixabay.com//?utm_source=link-attribution&utm_medium=referral&utm_campaign=image&utm_content=1399332″>Pixabay</a>
Age:
Credit Image by <a href=”https://pixabay.com/users/esudroff-627167/?utm_source=link-attribution&utm_medium=referral&utm_campaign=image&utm_content=1399332″>esudroff</a> from <a href=”https://pixabay.com//?utm_source=link-attribution&utm_medium=referral&utm_campaign=image&utm_content=1399332″>Pixabay</aThe Equal Credit Opportunity Act is specific about how an individual’s age may be used as a factor in credit decisions. A lender may request that you state your age on an application. However, if you are of legal age to sign a legal contract (18-21, depending on your state), this lender may keep you from turning down or decreasing your limit due to your age. Creditors may not close your accounts because you’ve reached a certain age.
Public Assistance:
You may not be denied credit because you receive Social Security, or another means of public assistance. Yet, certain information related to this source of income can be used in determining your creditworthiness.
Housing loans:
The Equal Credit Opportunity Act also applications for mortgages or home improvement loans. In particular, it bans discrimination against you based on your ethnicity or nationality of the people in the neighborhood where you live or wish to purchase your home.
What is the best interest rate:
As of January 1, 2011, a lender that provides mortgages, credit cards, auto loans, and most other forms of financial products must disclose essential details to their customers when they use risk-based pricing. Risk-based pricing differentiates customers based on their credit information so they can charge higher rates to customers they determine are more of a risk. Customers who did not receive the best credit score must be informed of their credit score or the fact that risk-based pricing was used and that other customers received better ratings. Customers can be told what their negative factors were as well as be given a scale of their ranking based upon their credit score. Customers also may review their credit reports to make sure the information is accurate.
If you’re denied credit:
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If denied credit, the Equal Credit Opportunity Act affords you the right to know why. If it was because of a credit report from the credit bureau, you’re entitled to know the reason. You can request the specific information from the report that led to your denial. Once you’re given this information you can ask the bureau for a copy of your credit report. They cannot charge for this service, providing you requested it within 60 days of being denied. You can further request that the bureau investigate any inaccurate, incomplete information and correct its records.
Beware of credit-repair scams. The Federal Trade Commission’s Building a Better Credit Report has information on correcting errors in your report, tips on dealing with debt and avoiding scams, and more.
Once you see your credit report, you will see those creditors who gave you a good report, and those who did not. Contact all those who gave you good reports and tell them the following information:
- Your current address
- Your full name
- Your correct date of birth
- Your Social Security Number
- Your employers name
Once this is accomplished, you can write to the three credit Bureaus a similar letter to the example below.
Date
The name of the Credit Bureau
The credit bureau’s address
To Whom It May Concern:
I have written you so that you may update or correct my personal information on file with your company.
- Please update my address to: Your current address
- Please update my name to: Your full name
- My only and correct Social Security number is: XXX-YY-ZZZZ
- My date of birth is: ZZ/YY/XXXX
- My employer is: Qwer5 Technology Inc
I do not wish to have my telephone number on my report.
Please remove all the other addresses from my report, as they are not deliverable to me by the U.S. post office, and they are not reportable as per the Fair Credit Reporting Act because they are not accurate.
Thank you for your time and effort
Signature
Your Name
Enclosed:
A copy of your driver’s license, a copy of your Social Security Card, and a copy of an envelope from a utility company addressed to you for proof of residence.
Once this has been sent to each bureau through registered mail because you have sent this information to all your creditors, which gave you a good report, they should remain on your account. However, if the creditors who did not give you a favorable report do not provide proof in the required period, they must be dropped from your credit report.
Give this the required time after they have received your letter and then request a new report from each of the bureaus.
Note: Be sure that during this phase of your credit rebuilding, you have not disputed any charges on your report. Disputing charges will be the next phase, but they must remain separate.
In the next phase, you send each of the bureaus a registered letter in which you dispute each report of bad credit that you have not made and demand that they give proof of your involvement. If none is forthcoming, the negative report should be dropped after thirty days of receiving the inquiry letter from the bureau. This letter should dispute all bad reports past their period, as they can no longer be listed. (Look at your local laws for these times.) usually two years for verbal agreements, four years for written contracts, and seven years for items that have gone to collections. Note: Any time you acknowledge you owe these amounts to the creditors, the period restarts, which includes those recorded phone calls. If you dispute an inquiry where credit was granted, they can close your account, so be careful to not include them. The author of the blog is not responsible for any letters you send to the bureaus or the results received. You remain responsible for all action you take after reading this blog. The author of the blog is not a lawyer and only offer suggestions wheatear or not your do your own research and follow up on the suggestion is your decision The Federal Trade Commission’s Building a Better Credit Report information is listed in this blog so that you can follow their suggestions.
Note: Images on this blog site are from a free source. No image or group of photos are intended to represent the people I serve. I don’t care about Race (that is a politically correct term that I do not like because we are all of the same Race, the Human Race. I prefer the term ethnicity), color, religion, sex, gender, marital status, disability, genetic information, national origin, source of income, Veteran or military status, ancestry, citizenship, primary language or immigration status. I am a service provider for all people. We will all rise together when we band together and help one another. Joseph Erwin is a Real Estate Broker, DRE # O2131799, and a CA general contractor # B 696662. He’s a member of the CRMLS and The East Valley Association of Realtors located in the Inland Empire region of Southern California.
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