<p>Given the mechanical nature of this calculation, an individual's credit score is highly dependent on the information input into the algorithm. If a credit bureau has collected inaccurate or misleading data, an individual's credit score could be adversely affected as a result.</p> <p>Consequently, most consumer welfare advocates advise individuals to review their credit reports at least once per year, in order to ensure that the reports are accurate. The fallacy and biggest myth out there is that the credit reporting agencies answer to the US Government and only carefully checked information is inserted in your credit report. Privately owned, for profit companies, update and maintain and compute your information and the formula is not fully revealed so there is no way you can recompute your score to see if they are even accurate according to their own guidelines.</p> <p>The latest studies show that 4 out of 5 credit reports containing errors which is appalling!</p> <p>Not only does it hurt you to have an error reporting a negative which is serious enough for 29% of Americans to be denied employment or credit. You are equally as hurt when a positive tradeline (like paying on- time as agreed credit cards or installment debt) is left out of your credit report as positive items increase your score so your score is reported as lower than it could be.</p> <p>Drew how do I protect myself?</p> <p>Simply, review your credit report and take the steps necessary to dispute inaccuracies which we will show you how to do in this book. Legislation passed in 2003 helps the American consumer somewhat in that you now have access to a free annual credit report through the Fair and Accurate Credit Transactions Act starting in 2004.</p> <p>The bad news is that very few people know of this and many for profit firms are luring consumers into believing that their pay for credit report firms are the ones designated by this legislation. In another chapter we tell you how to access your credit reports totally for FREE, safely and legitimately. Our personal experience is that it is not always an easy or expedient process, scores are not provided easily, so sometimes a paid service is better if speed is the goal. If you are denied credit for reasons based on the content of your credit report you also have the right under the Fair Credit Reporting Act to receive a free credit report from the issuing credit bureau within 60 days of receiving a credit denial notice.</p> <p>This right is in addition to the annual report. You can always pay at anytime to obtain a credit report. The three major credit reporting agencies, also known as credit bureaus, will provide this service for a fee as well as many other privately run companies.</p> <p>Equifax, Experian, and TransUnion provide reports for individuals and Dun &amp; Bradstreet Credit Services provides business credit reports. Addresses for the CRAs's are in the glossary and a section detailing how to contact the CRA's directly are in the chapter titled How to Obtain Your Credit Report. </p> 2008-10-25T02:31:06Z -16.2193 162 2053 true 17 5357 do-you-need-credit-for-your-business-here-is-a-secret 0 2008-10-28T17:03:21Z 2008-10-28T17:03:21Z

Given the mechanical nature of this calculation, an individual's credit score is highly dependent on the information input into the algorithm. If a credit bureau has collected inaccurate or misleading data, an individual's credit score could be adversely affected.

0 2009-02-24T09:46:46Z