Bad numbers can impact your ability to purchase, borrow and pay things off
By Bernard Freeman
The number reflected on your credit report can have huge personal impacts. It may limit your ability to get a loan and open other lines of credit, or drive up the interest rate you pay on the debt you’re carrying. In some cases, it can become a deciding factor in the hiring process. So pay close attention to these regularly updated calculations, and note any errors. Not correcting your credit report can end up changing your entire path forward.
ROOTING OUT ERRORS
A Federal Trade Commission study of credit reporting found that 26% of participants had an error that indicated a risk for potential lenders. The Consumer Financial Protection Bureau confirms that the top complaint they receive is about these basic mistakes. Make sure you’re not one of them by closely following your numbers through national credit bureaus like Equifax, TransUnion and Experian. Some offer free credit report specials, as do certain banks and credit-card companies. Closely monitoring your report will also give you an early heads up if someone tries to steal your identity.
GETTING THEM FIXED
Credit bureaus allow you to dispute errors through an online process, and businesses and credit-reporting companies are required to fix errors free of charge. There are online options, or you can download dispute forms and mail them in. Keep complete records on any errors, and when you disputed them. Bureaus are required to investigate any dispute within a month’s time. If they disagree with your alert, they must also provide an opportunity for you to submit more evidence. All of these details are then forwarded to the company which originally reported the incorrect information. Once changes are made, the bureaus are then required to send you a free updated report.
DISPUTING DIRECTLY
If you choose to dispute the error directly with the reporting business, carefully document all of your communication. Begin with a letter or email, rather than a phone call, stating that you are disputing an error. Include complete contact information, the specifics of the mistake and why it’s incorrect, and copies of all documentation. (Do not send your originals.) Companies are required to inform all credit bureaus that you are disputing an element of your credit report, and the bureaus must acknowledge the dispute within your report.
If Your Identity Is Stolen
Data breaches, hacks and lost phones or wallets can wreak financial havoc
The Federal Trade Commission reports that as many as five million Americans are impacted by fraud and identity theft during any given year. This can lead to damaging financial issues, plunging credit scores and compounding stress. But there are a few tried-and-true processes in place that can provide some small amount of peace of mind along the way.
REPORT THE CRIME
If you have been the victim of identity theft, begin by contacting the Federal Trade Commission, either by telephone at (877) 438-4338 or online at usa.gov/identity-theft. Workers there will assist in completing a form verifying your situation for creditors, banks and other businesses. They will also help you establish an individual recovery plan based on the particulars of your situation. Keep in mind that some creditors may require a police report, so call local authorities next.
FOCUS ON CREDIT
The next step is contacting national credit bureaus like Equifax, TransUnion and Experian. Placing a fraud alert on your credit report with any of these individual bureaus is all that’s needed, since the others are notified. If the identity theft causes longer-term problems, you may need to share a copy of the Federal Trade Commission theft report with each national credit bureau in order to set in motion a special alert that lasts for up to seven years.
OTHER REPORTS
Contact the fraud department with your personal credit card and banking institutions. Tell retailers and other places where you have credit accounts what happened. Employers or potential employers may also have to be alerted, depending on your role with the company. Contact the related offices directly if you are a victim of IRS tax ID theft, unemployment identity theft or Medicare fraud. The National Long-Term Care Ombudsman Resource Center is standing by for those who have been victimized at nursing homes or similar facilities.
STAYING SAFE
Taking part in some basic safety measures can help lower your risks. Never place your Social Security card in a wallet or purse. Be wary about sharing key personal information like your birthday, and keep your account number at the bank a secret. Pay close attention to your account statements, noting any sudden or unexpected changes. Avoid banking transactions when connected via public Wi-Fi. Carefully shred expired cards, credit offers, most receipts and related statements so key financial data isn’t at risk.
