US Credit Reports

Credit reports are often viewed with dread, especially by those who have gotten into turbulent financial waters. But reality is never your enemy, even when it is unlikable. In order to maintain healthy finances, and resolve any debt problems you may have, it’s important to have the best information possible about your credit status. Those information are available - to the lender and to you - in credit reports.

These reports are retained - at least in the U.S. - chiefly by the three major credit reporting agencies: Equifax (PO Box 740241, Atlanta, GA 30374; www.equifax.com), Experian (PO Box 2002, Allen TX 75013, www.experian.com) and TransUnion (PO Box 2000, Chester, PA 19022; www.transunion.com). Donor

The reports include a multi-year history of your credit cards, home loans and other financial obligations. It also records any late payments and how late they were, 30-day past due, 60-day past due, etc. The reports will show any current and old address, and most of the time your phone number and social security number.

That information is available to any qualified party - a bank, a mortgage lender, a credit card issuing company and specific organizations during legal proceedings. But, though every company genuinely tries to maintain accurate records, the reports may have errors.

They may indicate loans as active that have been paid off. They may list existing credit cards you canceled long time ago. They may fail to list payments made to make up overdue debts. Often, this isn’t negligence on the part of the credit bureaus but merely a reflection of timing and other common human errors in maintaining records. The world may be automated, but those databases still don’t always communicate successfully between companies using different systems.

The best thing someone can do about this - out of self-protection, if nothing else - is to get copies from all three agencies and examine them thoroughly. Take note of any errors, establish proof of the error, then send a registered letter with the evidence to the agency asking them to correct the numbers.

Thanks to recent legislation, one can obtain a free copy of your credit report every year. There are various ways to do that by filling out a form online (annualcreditreport.com) or calling.

On a more positive note, having the data at your fingertips allows you to build up a debt-free plan for your future. Understanding your credit history is the initial step in creating that plan.

Review your history and remark any current overdue amounts. Clear those up first, as quickly as you can. One method is to pay off smaller outstanding amounts first. That frees up funds than be used on the bigger outstanding amounts. Working your way up, you will finally begin to see light at the end of the tunnel.