Credit Reports

Credit Reports

Your credit report affects more than just your ability to get loans.  Many employers now review credit reports as part of the hiring process.  Rental properties and utility companies can also review your credit report.  Even the amount you pay for insurance premiums can be affected by your credit report.  With so much on the line, it’s worth your time to make sure the information on your report is accurate and as positive as possible.

The information contained in your report and factors that make up your credit scores can be difficult to understand. That’s why CCCS provides free counseling on your credit report!  A CCCS certified counselor will go over the report with you line by line, explain how accounts are reported, advise you how to correct errors on the report and how to improve your credit score.

CREDIT REPORT ERRORS CAN COST YOU MONEY!

Errors on your credit reports concerning creditor balances or timeliness of payment are common. These errors may cause a lender to charge you a higher rate of interest, thinking you are a greater credit risk. At least once every year, and before major credit purchases, consumers should review their credit reports for accuracy.

According to the Fair and Accurate Credit Transaction Act, everyone is entitled to one free credit report every 12 months from each of the credit reporting bureaus: Equifax, Experian and TransUnion.  The process to order your free report is easy: go to the website http://www.annualcreditreport.com/ to get your report online, call 1-877-FACT-ACT (322-8228) to order your report over the phone or download this form to fill out and mail in.  Georgia residents can obtain additional free copies according to state law.  In most other states the charge is $9 per additional copies.

Once you receive your credit report, review it for accuracy. Look over everything from the spelling of your name to the balances reported by your creditors. If you find an error you can write a dispute letter to the credit bureau.  For help with understanding your report or filing disputes, contact CCCS to set an appointment to speak to a counselor. Your credit score will not be included on your free credit report, but you can order your score from the bureaus for a small fee.

Or call CCCS at 1-800-821-4040 or 912-691-2227 for one-on-one credit bureau counseling session.

Credit Scores

Your credit score is the measuring stick that creditors and lenders use to determine whether or not to lend to you and how much a line of credit will cost you.  Your credit score is determined by the information on your credit report, so it’s important that you review your report carefully to make sure your credit report is accurate.  A recent survey found that nearly 70% of credit reports contain errors, so check your report carefully at least once every year.

There are many factors that go into calculating your credit score.  Information from the last 2 to 3 years has a greater impact on your score then older information.  Here is a brief summary of how credit scores are calculated:

- Payment History: The largest factor in your credit score is your payment history.  The most important thing you can do to keep a high score is to always make your payments on time.  If you have fallen behind on payments, getting those accounts current will have an immediate effect on improving your score.

- Debt Levels: Keeping your balances at or below 30% of your total available credit will give you a higher credit score.  The closer you are to maxing out your accounts, the lower your score will be.  Work on paying down your balances and keeping them low to increase your score.

- Credit History: How long you have been using credit and your average account length will also affect your credit score.  Keeping old accounts open will give you a long credit history.  Keep in mind that every time you add a new account, you shorten your average credit length, so be cautious about frequently opening new accounts.

-New Credit and Inquiries: Every time you apply for a new line of credit and that creditor pulls your report, that stays on your report for two years as an inquiry.  Too many inquiries can make you look like a high risk borrower and have a negative effect on your score. 

- Type of Credit: Having a mix of different types of credit will improve your credit score.  Creditors like to see that you can manage both revolving credit (such as credit cards and department store cards) and installment loans (like car loans, student loans, or mortgages).  If all the accounts on your report are credit cards, you will have a slightly lower credit score.

Beware of Credit Repair Scams

There are plenty of advertisements for companies who claim they can erase bad credit or drastically improve your credit score for a fee.  Remember this: anything that can legally be done to improve a credit score, you can do yourself for free.  If you are paying someone to “fix” your credit, you are either paying for something that you can do for free or you are paying for something that is illegal.  If you want free help with understanding and improving your credit yourself, please contact CCCS for a free credit review counseling session: call 912-691-2227 or send an email to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

ID Theft

Consumer fraud is big business that poses a significant threat to consumers and to the economy. According to the Federal Trade Commission (FTC), consumers contact them with more questions and concerns about credit and credit fraud than any other topic.

Credit fraud appears in many forms: abusive lending practices, stolen credit cards, hijacked credit identities, advance-fee loan scams, and so-called guaranteed credit repair cons.

The Identity Theft and Assumption Deterrence Act of 1998 allows victims of identity fraud the right to file police reports and to recoup damages. It also appoints the Federal Trade Commission to serve as an advocate for victims by assisting them with finding the right law enforcement agency to prosecute their case.

Ways to prevent identity theft:

- Shred or burn any papers with financial information and identifiers, such as account numbers or your Social Security number. Tearing documents in half and throwing them in the trash is not enough protection.
- Don’t put your Social Security number on any document unless it is legally required.
- Check your credit report regularly (ideally, twice each year) to make sure you recognize all the entries.
- Remove your name from promotional lists operated by credit reporting agencies and credit grantors.

If you find you have been victimized by identity theft, immediately call the credit bureaus and put a fraud watch on your account. File a police report. You’ll need it when disputing charges with various creditors.

To minimize your vulnerability to identity theft, CCCS suggests consumers order a copy of their credit reports at least twice each year.  Go to http://www.annualcreditreport.com/ or call 1-877-FACT-ACT (322-8228) to get your free credit reports.

Additional Resources

Free Credit Reports
Don’t be fooled by advertisements to claim you will get a free report if you sign up for a credit monitoring program.  Go to http://www.annualcreditreport.com or call 1-877-FACT-ACT (322-8228) to get your free credit reports.

Information on Credit Scores
To learn more about how your credit score is calculated or what you can do to improve your credit score, visit http://www.whatsmyscore.org/.

Credit Reporting Bureaus Contact Details
Equifax Credit Information Services
PO Box 740241
Atlanta, GA 30374-0241
Phone: 1-800-685-1111

TransUnion Corporation
Consumer Relations Division
PO Box 2000
Chester, PA 19022
Phone: 1-800-888-4213

Experian (Formerly TRW)
PO Box 2002
Allen, TX 75013
Phone: 1-888-EXPERIAN (397-3742)

Identity Theft Resources
The Privacy Rights Clearinghouse offers consumer tips on protecting privacy at http://www.privacyrights.org/.

Get more information about Identity Theft at http://www.idtheftcenter.org/

To file a complaint with the Federal Trade Commission, or to get more information on consumer rights, go to http://www.ftc.gov/.