REPAIRING YOUR CREDIT A credit report is the history and record of your credit usage. A credit bureau is a private record keeping business that maintains information about consumers and how they use credit to pay their bills. Every woman who has ever used any form of credit has a credit report that will follow her anywhere in the world. In fact, it is standard procedure now for potential employers or landlords to request a copy of your credit report. A good credit report is important because it will allow you to use credit when and where you want it. An unfavorable credit report will mean that your credit worthiness will no longer meet any lender’s standards. Your chance of obtaining further credit or credit cards will be difficult. Your credit report should contain the following information: Identifying information: name, address, Social Security number, spouse’s name
What is Credit?
Credit means that you are using someone else’s money to pay for things.
It also means that Details concerning your current employment: your position, length of you are making a employment and income promise to repay the money to the Information about your credit history: how promptly you have paid your person or debts, how much and how often you have borrowed company that loaned you the Information from public records: bankruptcy, civil suits and tax liens money. Inquiries about your credit report remain on your record for two years, unfavorable information about your credit history is kept on your record for seven years, and bankruptcies are kept on your report for ten years.
Do not be fooled by people who promise, for a fee, that they will repair your credit! No one can fix your credit for you.
So, if you are unsure of your credit status, know you have a negative credit report, or have never seen a copy of your credit report, it is a good idea to request a copy of it. You may do this by contacting one of three credit bureaus. There are three national reporting systems and most charge a small fee for each report requested. The credit bureau’s are: Numbers to Remember... Equifax: 1-800-685-1111 www.equifax.com Experian: 1-888-EXPERIAN www.experian.com Trans Union Corporation: 1-800-916-8800
www.transunion.com
EQUIFAX Information Service Center P.O. Box 105873 Atlanta, GA 30348 1-800-685-1111 $8.00 per report If you are unemployed or a recipient of welfare, Equifax allows you one free copy of your credit report per year. Tip: If you are incarcerated, write Equifax explaining your situation, enclosing a copy of your prison ID. If they do not accept this, then you will know you should begin saving for the $8.00 fee. EXPERIAN P.O. Box 2041 Allen, TX 75013-2104 1-800-682-7654 $8.46 per report. TRANS UNION Consumer Relations Disclosure Center Box 390 Springfield, PA 19064 1-316-636-6120 $8.00 per report When requesting your credit report, be sure to include the following information: 1. Your full legal name, including middle initial or name 2. Your complete address or addresses for a five year period, including apartment numbers and zip codes 3. Your Social Security number 4. If applicable, your spouse’s full name, including Jr., Sr., III 5. Your date of birth 6. Your signature 7. A copy of your drivers license, current utility bill, or a copy of your prison ID You must include your social security number, without that the credit bureaus will not be able to generate a report.
When you receive a copy of your credit report, examine it carefully for errors. Does it have your name spelled correctly? Is your address, social security number or spouse’s name correct? If your are currently employed, does the information accurately reflect your position, length of employment and income?
Is your credit history correct? Is the information accurate in reporting how promptly you have paid your debts, how much and how often you have borrowed? Finally, is the information on bankruptcies, civil suits, or tax liens correct? If there are errors on your credit report, you may dispute them by sending a letter of dispute to the credit bureau. They must verify your information with the creditor and correct the error. You will then receive a corrected report. If there is information that should have aged off your report, negative information over seven years old or bankruptcies over ten years old, you should dispute this information as well. Write a letter to the credit bureau and ask them to remove this information from your report. If you have a negative credit report that is not due to error on the part of the credit bureau, you have the right to add a 100-word explanation of any problem to your credit report. Anyone requesting a copy of your credit report will also get a copy of your statement. FREE Credit Counseling!!
Consumer Credit Counseling Service 1-800-747-4222
Dealing with your creditors....
Dealing with bill collectors can be a frightening and frustrating experience. They can be rude, mean, and never-ending! They even contact your family members to try to find you. However, not answering phone calls or ignoring bill collectors will only make them think you are avoiding them. If you cannot pay your bills, you must tell them that! There may be extenuating circumstances in your life that make paying your bills difficult. However, bill collectors want to recover some of the money that they are owed, so they are usually willing to work out a payment plan. In addition, it is much better to reduce a ceditor’s payment and spread the existing money among all creditors equitably than to delay payments to a creditor. If you have returned home, the Consumer Credit Counseling Service is an organization that can help you resolve your credit problems. Their service is free, and they work with both you and your creditors. The CCCS will help you establish how much debt you have, which bills to pay and how much to pay, and they will help you set up a budget. To reach the CCCS, call them at 1-800-747-4222. If you are still incarcerated the Consumer Credit Counseling Service recommends that you contact your creditors immediately. Many women have reported that while they were incarcerated, their family members received repeated phone calls and letters. Bill collectors do this because many times family members will pay the bills. However, they are not legally responsible, and do not have to pay these bills. If your family member is being harassed, have them tell the bill collector that you are incarcerated and simply won’t be able to pay the bill at this time.
It is best to call your creditor. If you can call them, the following guidelines can be helpful: Introduce yourself and ask to speak to the person with whom you have dealt with before or another person in authority. Tell the person what you are calling about and give your name and account number. Then explain the problem. Stress the seriousness of your problem. Mention only the extent of the debt, the number of creditors, your family’s total monthly income and commitments, and the payment schedule that has been worked out for that particular creditor. You may wish to indicate other favorable arrangements other creditors have agreed to make. Explain to the creditor the program that you have worked out and the severe constraints of the program. In describing the problem, explain how little money the repayment program allows per month. If cooperation is not forthcoming, ask for suggestions, stressing the benefits of working together. Always ask who you are talking to and write down their name, so that the next time you may need to contact the creditor you may speak to the same person if at all possible. It will be much easier for both you and the creditor. Remain friendly with the creditor and work with him/her in developing a repayment plan. If you are unable to telephone your creditors, you can write them a letter. Here is a sample letter:
Your Name Your Address Date XYZ Credit Corp Anytown, USA Dear XYZ Credit Corp: Because of a number of factors (If there are specific factors, you should mention them here) I am currently experiencing financial difficulty. I have taken a long, hard look at my situation, and have work ed out a very careful budget along with a repayment schedule for all of my creditors. In order to provide for my necessary household expenses and the payments I am making to my creditors, I am asking each creditor to accept a reduced payment until I am back on my feet again. In place of my regular payment of $_____, I request that you accept payments of $_____ each (month, week) until the loan is paid back. I assure you that I will incur no new debt obligations while I am engaged in my debt-management program. I am enclosing the first of these payments. (If that is not possible, indicate when the payment will be made.) If there is any question about the repayment schedule, please feel free to contact me in writing at (your address) or by phone between the hours of ___ and ___. My telephone number is 000-000-0000. Sincerely, Sign your name
Be sure to keep an extra copy of your letter and if possible send it certified mail, return receipt requested if possible. It is important to be realistic about how much you will be able to pay each creditor and still have money for necessary living expenses. Again, the Consumer Credit Counseling Service can assist you with developing a money management and re-payment plan. If you are still incarcerated, begin saving your canteen money and when you get out, be sure that you follow-up on the promise to repay your creditors and begin paying off what you owe.