Things You Should Know About Dealing with Credit Bureaus

 

Ever had credit? Who doesn't nowadays? Chances are, you automatically qualify as a person who deals with credit bureaus. Whether or not you have just recently been denied credit, you must know what these credit bureaus are and how you should deal with them. They do affect our lives and may even be unwittingly causing our identities to be stolen. Protect yourself, know your rights and the 10 things you should know about dealing with credit bureaus

 

1. Credit bureaus are private companies. They exist to make a profit. Just like any company, they have clients that pay them for their services, transact regular business, pay taxes and sometimes even observe holidays. They have a formidable database on just about every adult in the United States but they are not part of any state or federal government that has any legal authority over you. What they have can influence any credit application you make.

 

2. Credit bureaus keep records about you and your financial transactions with credit companies. They gather this information from archived documents from credit companies and make a profile on you. They have all this information stored within a complex computer system. However, the accuracy and the totality of this information have been compromised on several occasions.

 

3. They do business with credit companies by selling the information they have on you. Credit companies deny or grant you a loan based on the information the credit bureaus supply. Having a negative entry in your credit report may be the reason why you would be denied credit.

 

4. Federal authorities have recognized the significant role that credit bureaus play with our daily lives, and thus have enacted the Fair Credit Reporting Act (FCRA). Under the law these credit bureaus must conduct their businesses in accordance with the FCRA. They are bound to include fair, accurate and complete information on your credit report.

 

5. The FCRA also gives several rights to the consumers in dealing with the credit bureaus. Some of these rights give you the privilege to challenge the negative information you have on your credit report. A credit report must also be given to you for free annually  or when you have just been denied credit.  You must ask for the report, it is not sent automatically.

 

6. Dealing with credit bureaus involves establishing communication lines. Get to know how to get their attention. Write a well-drafted letter, know the hotlines and member privilege lines - you may get these numbers if you apply for membership.

 

7. Have every transaction you have in dealing with credit bureaus logged or documented. When sending letters, use a return receipt request from the post office. Faxes have transmission logs that validate whether the transaction was successful or not. Log phone call conversations by taking note of the person you have spoken to and what date and time you have spoken to them.

 

8. Should you feel that the credit bureaus are not giving you a fair deal, contact the proper authorities. The FCRA was created to protect the rights of the consumer.