Dealing with Credit Bureaus

It is essential to understand that Credit Bureaus are nothing more than record keepers.

Simply put, they keep a record of who has given you credit, when they gave you credit, how much credit you are given and whether or not you paid it back on time. When you want to obtain credit cards, loans, financing for a car or home, leases, apartments and sometimes even employment, the lender or bank will check your credit to see your financial history.

Credit Bureaus are paid by the people who request your credit file.
Credit Bureaus have no legal power over you. Banks, police or the government does not run them; so don't be intimidated by them. They are the Credit Bureaus because they own large computer systems capable of storing credit information on everyone in the United States. However, because of the tremendous amounts of information on their computers, their method of storing information is very basic and ridden with many errors. Since the bureaus have made so many errors in the past, all Federal Laws regarding credit information are very much in your favor.

The Major Credit Bureaus

EXPERIAN
P.O. Box 2002
Allen, TX 75013
(888) 397-3742

experian.com


Trans Union Corporation
P.O. Box 1000
Chester, PA 19022
(800) 888-4213

transunion.com


Equifax, Inc.
P.O. Box 740241
Atlanta, GA 30374
(800) 685-1111

equifax.com

Crucial Strategies
The only thing you legally need to supply the credit bureaus for a copy of your report is your name, your social security number and a legal mailing address (P.O. Box is a legal address). If you don't want to chance harassment by creditors at this time, it may benefit you to acquire a P.O. Box. Did you know that many of the collection agencies are owned by the credit bureaus?

NEVER give credit bureaus more information than they need!

The bureaus also have a right to request a copy of your social security card, but only give a copy of the front. They also may request a copy of something showing your address if it is different than what is showing on the report. Send them a billing statement that has your address. Do not send them a copy of your driver’s license as they request. Remember these bureaus are information-gathering companies who sell your information, not only for credit, but also for promotional reasons.

Before going any further, you should have copies of your current credit reports. If you don't, you can use the sample letter on the following page as a guideline for requesting your credit reports from the 3 major bureaus.

The Credit Bureaus must send you copies of your credit file, free of charge if you were recently denied credit. They will also provide you with one free copy each year. We advise against having anyone you know get your credit file for you because this creates an "Inquiry" on your credit report, and makes it appear as if you are trying to borrow money from somewhere.

If you are in a hurry and cannot wait 5 to 10 days to receive your credit report, simply look in your local Yellow Pages under Credit Bureaus. If the Credit Bureaus have a local office or affiliates in your area, you may go there directly and obtain your credit file without delay.

When you get the reports, there will be an information page telling you how to read your report. And all three agencies use different formats. The first step is to find all the derogatory items.

Look for collection accounts. Equifax lists them at the end of the report, Trans Union mixes them throughout the report. Experian gives a brief paragraph explanation of all accounts. The collections may have a collector’s name or account number you do not recognize.

If you don't recognize the account as being one of yours, please don't assume that it is!

How to Request A Credit Report
The following is a sample credit report request letter:

January 1, 2001

The Credit Agencies Name
P.O. Box 8030
Layton, UT 84041-8030

To whom it may concern,

Please send me a copy of my current credit file. The following is my current identifying information:

John K. Smith
1111 Perfect Lane
Collection, NY 11234

I have lived at the above address for the last three years.
I was born 3/2/51
My Social Security # is 111-222-3333

Thank You,

_________________
Your signature

Print your name


IMPORTANT: Included along with this form must be a proof of address. Show them a phone bill, utility bill, billing statement from any major creditor, etc. It must be a copy of something with your name and current address. Also send them a copy of the front of your Social Security card.

Always send letters to Credit Bureaus through certified and return receipt mail. This is available through your local Post Office.