Credit Reports
“Free” Credit Reports Have Strings Attached
The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies – Experian, TransUnion, and Equifax – to provide a free copy of your credit report, at your request, once every 12 months. But beware the heavily-advertised FreeCreditReport.com, which is an imposter site created by Experian.
If you order your “free” report through FreeCreditReport.com, Experian will automatically enroll you in a credit monitoring service that charges a monthly fee, which is then difficult to cancel later. The FTC has received so many complaints about FreeCreditReport.com that they recently launched two of their own hipster videos with catchy tunes.
The Most Important Item On Your Credit Report
The single most most important item that will lower your credit score is a recent late payment. I have seen credit scores sink a hundred points in one day (from 690 to 590) because payment on one account showed up as being 30 days late. And size does not matter! Even if you miss one measly $50 payment, your credit score will drop drastically.
Five Credit Repair Scams To Avoid
Cleaning up your credit report can take a lot of time, perseverance and creativity. So what about all of those credit repair businesses out there, promising to clean up your credit report for a fee? Is it worth it? Or should you do it yourself?
Credit Dispute Myths Revealed
Have you disputed an item on your credit report, only to be ignored by the Credit Bureau? While the Fair Credit Reporting Act legally requires them to give you a chance to dispute an item on your credit report, Credit Bureaus do whatever they can to make it difficult for the average consumer to exercise their rights. They are counting on you giving up. You lose unless you fight for yourself.
Beware Of Foreclosure Short Sale Scams
When you sign a deed in lieu of foreclosure in a short sale, the foreclosure may still show up on your credit report! Always get the bank to put it in writing.
Facing Foreclosure In Court
If you play in a baseball league, and you don’t show up for a game, the other team wins by forfeit. It works the same way in the legal system.
If you fail to defend your foreclosure simply because you did not answer the complaint, then the judge will automatically give the plaintiff (lender) a “default judgment”. Here’s how you can defend yourself.
