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