| Credit Reports, what are they? Do you know | | | | with these agencies and get any |
| that whenever you apply for any loan, your | | | | misinformation or misleading record fixed. |
| credit report is pulled up from the Credit | | | | |
| Bureau? | | | | Myth#3: If I pay my past due debt, then my |
| | | | credit history will be fixed immediately. |
| Well, credit bureaus maintain your credit | | | | |
| report. They have almost all the agencies or | | | | Fact: First of all it is always good to pay |
| vendors or suppliers or traders as their | | | | back to any creditor in time. If you are |
| subscribers. Are you asking what does this | | | | late, then you should communicate back to |
| mean? Well whenever you apply for a credit | | | | creditors sharing with them why you need more |
| card, your application becomes the part of | | | | time. In majority of the cases, if you are |
| your credit record. All the basic information | | | | honest and reasonable, your creditors will |
| supplied by you e.g. your name, date of | | | | help you because their objective is to get |
| birth, address, Social Security Number etc, | | | | the money back even if you are late. By |
| become the foundation of your credit score | | | | paying your past debt, you reduce your number |
| card. | | | | of days of the 'debt in delinquency' record. |
| | | | This means that your record can be improved |
| Can I get access to my credit history? Can I | | | | early if you paid early. |
| check what these agencies have been reporting | | | | |
| to credit bureaus? | | | | Myth#4: Any type of inquiries are not harmful |
| | | | to my credit score so I can keep shopping |
| Yes, you have all the rights to get a copy of | | | | around for credit cards or any other such |
| your credit history from any credit agency. | | | | credit products. |
| Also keep in mind that we all are entitled to | | | | |
| one free report per year if we are not in | | | | Fact: If there is a normal frequency of the |
| hurry and can wait for the report through | | | | credit inquiry, it is not harmful. But if you |
| mail. I think everyone should get one report | | | | shopping aggressively for mortgage or any |
| every year. | | | | other such product, then it can impact your |
| | | | credit standing. So be very careful for any |
| While writing about these type of articles, I | | | | such inquiries and you should go to mortgage |
| have often received few emails asking variety | | | | consultants who do shopping for you based on |
| of questions on issues related to their | | | | only one inquiry. If you go to different |
| credit. Most of the time, I noticed that I | | | | service providers, then each mortgage service |
| can group these questions in five groups. I | | | | provider will request for an inquiry which |
| hope that by sharing answers to these five | | | | will hit your credit records. |
| questions, I can help my readers in USA and | | | | |
| Canada better. | | | | Myth#5: Bankruptcy can not never be taken out |
| | | | from the credit records. |
| Myth#1: The Credit Bureaus are required to | | | | |
| keep derogatory remarks on my credit history | | | | Fact: Bankruptcies are similar to any other |
| for 7 to 10 years as per the law. | | | | derogatory items e.g. bad credit, poor |
| | | | credit, non-payment of a debt, etc. on your |
| Fact: Is it true? The big answer is NO. Let | | | | credit reports. You should always consult a |
| me repeat for the benefit of the readers from | | | | lawyer or a consultant before you consider |
| USA and Canada that there is no such law. In | | | | announcing bankruptcy. That consultant will |
| fact the credit bureaus are required to | | | | guide you by sharing all the pros and cons of |
| automatically remove any such remarks from | | | | taking that action. |
| your credit report every few years as per the | | | | |
| law. Normally for each province or state, | | | | You should keep in mind that credit bureaus |
| these number of years when record is removed, | | | | are there for a very specific reason. Their |
| is different. | | | | main job is to provide a credit rating to the |
| | | | bank about you so that the bank will know |
| Myth#2: My friend said that it is illegal to | | | | whether you are a safe customer or not. And |
| remove any credit history information or | | | | last but not the least, credit bureau |
| alter any credit report information in the | | | | provides you a similar coverage if you are a |
| file. | | | | business man. |
| | | | |
| Fact: The purpose of the law is to protect | | | | So in summary, you should consider your |
| consumers from any type of intrusions from | | | | credit report as your life score card and |
| any credit bureau. You should also keep in | | | | keep a close eye so that you keep winning all |
| mind that it is our right that we interact | | | | the matches in your life. |