Bad Credit Refinancing

Due to changes made to the Fair Credit Reporting Act as of December 2003, the three credit bureaus TransUnion, Experian and Equifax are now required, at your request, to provide you with an official credit report, at no cost. This is allowed once every 12 months. You are encouraged to take advantage of this, and make sure that what is getting revealed to lenders and potential employers is totally accurate information.

With identity theft at an all time high (40 million Americans had their identities stolen a few weeks ago in the biggest case of identity theft in American history), it is very important to ensure that your credit report is correct. There are millions of people in need of bad credit repair that may not even know it because their credit reports have been compromised by identity thieves.

Before you can understand your credit report, you must obtain it. It is very simple to obtain a free copy of your credit report. You can use three different methods:

1. You may contact each of the three credit reporting bureaus directly either by phone or in writing:

Equifax

P.O. Box 740241

Atlanta, GA 30374

1-800-685-1111

Experian

P.O. Box 2002

Allen, TX 75013

1-888-397-3742

TransUnion

P.O. Box 1000

Chester, PA 19022

1-800-888-4213

2. You may use AnnualCreditReport.com and make your inquiry online.

3. You can call the toll-free Annual Report number at 877-322-8228 for more information.

Once you have your credit report in hand, how do you read it? There is a lot of information in these reports and it can be confusing. To begin your bad credit repair, you must be able to understand your credit report, right? Here is an outline of the information it contains:

The I.D. Section. This is where any information regarding your name, home address, social security number, date of birth, and spousal information (if applicable) is located. You will want to make sure this information is correct, because these are the components that define you.

Credit History. This is the main part of your report. You will want to examine this very closely and take your time. Any information that is incorrect should be disputed immediately. It will have a complete list of your open and paid credit accounts. Any late payments made will also be listed here. For each account, the following will be listed:

1. Company name

2. Account number

3. Your responsibility on the account i.e. individual, joint, co-signer, etc.

4. Date the account was opened

5. Number of months the account history has been reported

6. Last activity which will be your last payment or last charge

7. High limit – the highest amount your account has reached

8. Terms – if this is a car loans, the length of your loan may be included

9. Balance due on account

10. Past due amount at the time of the report

11. The type of account it is – revolving (like a credit card), installment (like a car or home loan) or open (like a line of credit)

12. Date reported – the last time your account information was updated on the account by the creditor

Collections Accounts. If any of your accounts have gone to collections in the past seven years, they will be listed here. If there is something that looks unfamiliar to you, it is important to dispute this immediately.

Courthouse Records. This is also known as public records. If there have been any judgments on any of your accounts i.e. bankruptcy records, child support settlements or any court-decided accounts, they may show up in this section. Again, inaccuracies should be disputed immediately.

Inquiries. This section will contain information on companies that have checked your credit in the last 24 months. Again if a company or inquiry looks unfamiliar, you will want to investigate this and see why this company is checking your credit. Multiple inquiries can decrease your credit score.

If you have been denied a loan, credit, or employment because of your credit score, do not be afraid to ask for information about it from whomever denied you. It is important to know what is being seen by potential lenders and employers, because what they see results in the approval or denial you will get.

If any portion of your credit report is inaccurate, or if you have outstanding debts, you should immediately begin the process of bad credit repair Higher credit scores will lead to more loan, credit card, and employment approvals along the ability to qualify for lower interest rates and money-saving promotions (such as cash-back, 0% APR, and travel rewards). Your credit report is very powerful and can impact your quality of life. Understand your credit report and take control.

-Ken S

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