Late Payments, Credit Scores and Credit Reports

A missed credit card or loan payment can have a seriously detrimental effect on your credit report. The golden rule of using a credit card is to make your payments on time every time, building a respectable payment history, avoiding debt, and keeping your creditor happy.

But what happens when you fall behind with your monthly payments; what happens when you miss a single loan or credit card payment as a result of a mistake, an oversight or a lack of funds? How will your creditor react, how quickly will the credit reporting agencies find out, and what options do you have for getting back on your feet?

How Late Payments Affect Your Credit Score

A late payment can reduce your credit score significantly and remain on your report for 7 years. It won’t impact your score throughout that time and the longer you leave it, the less of an impact it will have. However, the impact could be significant for individuals with good credit and bad credit.

As an example, if you have a credit score of 750 to 800, which is towards the upper end, a late payment could knock up to 710 points from your score. More importantly, it will remain on your payment history for years to come and reduce your chances of getting everything from a student loan to a credit card and mortgage.

How Soon do Late Payments Show on Credit Reports

You won’t be hit with a derogatory mark as soon as you miss a credit card payment. The credit card issuer may charge you a fee, but by law, they are not allowed to market it as a missed payment until it is 30 days due. And this doesn’t just apply to credit card debt, it’s true for loans as well.

Providing you cover the payment within 30-days, you can avoid a missed payment mark appearing on your credit report. But as soon as that period passes, your lender will inform the major credit bureaus and your score will take a hit.

Some lenders wait even longer before reporting, so you may have as long as 60 days to make that payment. Check with your creditor to see when they start reporting missed payments.

What About Partial Payments?

Many lenders treat a partial payment the same as a missed payment, especially where credit cards are concerned. If you’re struggling to meet your payment obligations, contact your creditor in advance, tell them how desperate your situation is and inform them that you can meet part of the payment.

They may offer you some reprieve, they may not, but you won’t know if you don’t ask. However, it’s worth noting that this will only impact your score if you don’t cover the remaining credit card payment before the 30-day period is up.

To avoid confusion, we should also mention that this only applies to the minimum payment. Some credit card users get confused with the difference between a balance and a minimum payment.

Simply put, the balance is what you clear at the end of the month to avoid accumulating debt and paying interest. If you fail to pay that balance on time, your debt will simply roll over to the next month, after which you will be required to meet a minimum payment on your debt. If, however, you miss that minimum payment, then you’re at risk of your credit report taking a hit.

Reporting agencies don’t record the difference between a rolling balance and a debt. If you spend $3,000 on your card every month but pay it off without fail and without delay, you won’t accumulate interest and technically, you won’t have debt. However, at the end of the month, the reporting agencies will show that you owe $3,000 on that card, just as they would show if you had accumulated a balance of $1,000 a month for three months and let it rollover.

How Long Does a Late Payment Stay?

A late payment will remain on your credit report for 7 years. But herein lies another confusion. Just because it reduces your score by 100 points and remains for 7 years doesn’t mean you will suffer a reduction of 100 points for those 7 years. 

It generally stops having a major impact on your score after a couple of years and while it will still have an impact in that 7-year period, it will be infinitesimal by the time you reach the end.

How Many Late Payments Can You Make Before it Reduces Your Score?

One late credit card payment is all it takes to reduce your score, providing that late payment was delayed by at least 30-days. However, that doesn’t mean you can forget about it once the 30-day period has passed and it definitely doesn’t mean that all the possible damage has been done.

It can and will get worse if you continue to avoid that payment. Your credit report will show how late the payment is in 30-day installments. When it reached 180 days, your account will enter default and may be charged-off, which will reduce your score and your chances of acquiring future credit even more.

Your creditor may sell your account to a collection agency. If this happens, the agency will chase you for repayment, seeking to establish a repayment plan or to request a settlement. Accounts are often in this stage when a consumer goes through debt settlement, as creditors and debt collectors are typically more susceptible to accepting reduced settlements because the debt has all but been written off.

How to Remove Late Payments from Your Credit Report

Although rare, it is possible to remove late payments from your credit report. There are also numerous ways you can reverse late payment fees, and we recommend trying these whenever you can as it will save you a few bucks.

Here are a few options to remove late payments and late payment fees:

Use Your Respectable History

The quickest way to get what you want is to ask for it. If you have a clean credit history and have made your payments on time in the past, you can request that the fee/mark be removed. 

Write them a letter requesting forgiveness, explain that it was an oversight or a temporary issue and point to your record as proof that this will likely not happen again. Creditors may seem like heartless corporations, but real humans make their decisions for them and, like all companies, they have to put their customers first.

Request Automatic Payments

Lenders have been known to remove late payment fees if the debtor signs up for automatic payments. It makes their job easier as it prevents issues in the future and ensures they get what they are owed, so it’s something they actively promote.

They may make this offer themselves, but if not, contact them and ask them if there is anything you can do to remove the late payment. They should bring this up; if they don’t, you can. It doesn’t hurt to ask and the worse they can do is say no.

Claim Difficulties

If you claim financial difficulties or hardships and make it clear that a late payment will make those difficulties much worse, the lender may be willing to help. Contrary to what you might think, their goal is not to make life difficult for you and to destroy you financially. 

It’s important to see things from their perspective. If you borrow $15,000 and your balance climbs to $20,000 with interest, their main goal is to get that $15,000 back, after which everything else is profit. If you pay $10,000 and start slipping-up, the risk of default will increase. The worse your financial situation becomes, the higher that risk will be. 

If they eventually sell the account to a debt collector, that remaining $10,000 could earn them just a couple of hundred dollars, which means they will lose a substantial sum of money. They are generally willing to help any way they can if doing so will increase their profits.

How to Avoid Late Payments

A late payment can do some serious damage to your payment history so the best thing to do is to prevent it from occurring in the first place. It’s a no-brainer, but this is a common issue and it’s one that countless consumers have every single year. So, keep your credit card and loan payments stable with these tips.

Set Automatic Payments

Occasionally, consumers forget to pay. Life is hectic, they have a lot of responsibilities to juggle, and it’s easy for them to overlook a single payment. If this happens, it should be caught and fixed before the 30-day period ends and the credit bureaus find out. But even then, fees can accumulate, and problems escalate.

To avoid this, set up automatic payments so your minimum payment is paid in full every month. You can do this for all debt, including student loan payments. Just make sure you have the money in your account to meet this minimum charge, otherwise, you could be paying for debt on one account by accumulating it on another.

Set a Budget

A credit card is designed to encourage you to spend money you don’t have. You’re buying things you can’t afford now in the hope or expectation that you will cover them later, only to realize that you’re struggling so much you can’t even cover the minimum payment.

If you ever find yourself in a situation like this, it’s time to analyze your finances and create a sensible budget. You may feel like you have a good idea of what you’re spending each month and how this compares to your gross income, but the vast majority of consumers seriously underestimate their expenses.

Improve Your Credit by Fixing Your Debt-to-Income Ratio

Calculate your debt to income ratio by comparing your total debt (credit card payments, student loans) to your gross income. The higher this is, the harder you need to work, and the less you need to spend on your credit card. 

Your debt to income ratio should be your central focus when seeking to improve your credit score, because while it’s not considered for loan and credit card applications, it does play a role in mortgage applications and is important for calculating affordability.

Conclusion: It’s Not the End of the World

A late payment can strike a disastrous blow to your credit report, but it’s not the end of the world and you do have a few options at your disposal. Not only do you have up to 30 (and sometimes 60) days to make the payment and prevent a derogatory market, but you can file a claim to have it removed in the event that it does appear.

And if none of that works, a little credit repair can get you back on track. Just keep making those payments every month, talk with your lender when you find yourself in trouble, and remember that nothing is unfixable where credit is concerned.

Late Payments, Credit Scores and Credit Reports is a post from Pocket Your Dollars.

Source: pocketyourdollars.com

By: Cherise Romero

In reply to Jeanine Skowronski.

The debt was already sold to collections before I could make any kind of payment. Ive been getting calls left and right on it. It went from a few hundred dollars to 2 grande due to all the. Collections ridiculous interests.

Source: credit.com

United Airlines Travel Bank No Longer Works for American Express Airline Credit

Beginning January 14th, United Airlines Travel Bank purchases no longer work to trigger the American Express airline incidental credit, according to reader ChurningExperiences and various data points on Flyertalk.

They switched the category of the purchase from “special service ticket”, which was considered by the AmEx system as an incidental charge, to “gift certificate” which is not. Purchases made January 14th and beyond will not get credited. Purchases made on the 13th an earlier were credited.

Major bummer, lots of people were using this. Hopefully everyone used up their airline incidental credits immediately in early January when it was still working.

Source: doctorofcredit.com

Your Secret Credit Weapon: The Chargeback

Credit card being run through a card reader.

 

Credit cards can open numerous doors of opportunities, and many even offer great cash-back rewards. But credit cards can also give you a good defense against untrustworthy online sellers. In the event of a dispute with a merchant, it provides the ultimate ace up your sleeve: the chargeback.

What Is a Credit Chargeback?

If you didn’t receive something you ordered, if you received the wrong item, or you just feel otherwise wronged by a transaction, a chargeback can return the money you spend to your account when the merchant refuses to do so. To initiate a credit chargeback, you can file a claim with your credit card company against a merchant. If your card issuer deems your complaint has merit, it will remove the money you paid from the merchant’s account and put it back in yours. Your credit card company is kind of like a tough older brother, talking to the bully who took your lunch money and getting it back.

Find Your Card Now
Privacy Policy

Is a Chargeback the Same as a Refund?

A chargeback isn’t the same as a refund and shouldn’t be viewed as an alternative. A credit card chargeback should be requested only when a seller or merchant refuses to return your money of its own accord. If a product proves defective or never arrives on your doorstep, your first stop should be traditional channels—that is, the retailer’s customer service desk or phone number.

If, after that, the merchant refuses a rightful refund, you can bring in your bank. Your credit card issuer should have clear instructions for formally disputing a charge, with options including a phone call, a written letter or an online form. There are often time limits and other criteria that must be met so you can’t request a return of funds for a purchase made years ago.

What Qualifies for a Credit Chargeback?

Before you request a chargeback, it’s important to note that some situations qualify and some don’t. The Fair Credit Billing Act is a federal law that dictates how credit card fraud and billing disputes are handled. It defines a number of situations as billing errors, including “goods or services not accepted by the obligor or his designee or not delivered to the obligor or his designee in accordance with the agreement made at the time of a transaction.”

In other words, if you order a product and it never arrives—or if you refuse delivery because it’s not what you expected to receive or it’s been damaged before getting to you—you’re entitled to your money back.

On the other hand, being unsatisfied with a purchase or a product isn’t a reason to request a credit chargeback. The National Consumer Law Center notes in its guide to credit card rights, “You cannot raise a complaint about the quality of merchandise or services you bought with a credit card in the form of a billing dispute.”

Your disappointment will probably help you get a refund, but involving your bank in petty grievances isn’t the way to go. Besides, cardholders who “cry wolf” too often and request too many credit chargebacks will have their requests taken less seriously and may even be put off for months.

Does a Chargeback Affect Your Credit?

A chargeback does not usually affect your credit. The act of filing a chargeback because of a legitimate cause for complaint against a business won’t affect your credit score. The issuer may add a dispute notation to your credit report, but such a notation does not have a negative effect on your credit. You may also be expected to make payments on the disputed charge until the investigation is completed, and late payments will affect your credit score.

However, if your complaint is illegitimate or determined to be fraudulent, your account can be closed by your credit provider, which can affect your score. Even if your charge is legitimate, sometimes the bank will side with the merchant, and then you’ll have to pay accompanying fees. Still, there usually isn’t any negative outcome for your credit score for simply requesting a credit chargeback.

How Do Banks Handle Chargebacks?

As long as the credit card issuer follows the guidelines set out in federal law, it can set its own procedures for how to handle disputes. Take, for instance, the timeframe in which cardholders must contact their issuers, which is set by the FCBA at a minimum of 60 days. Some institutions may extend the timeframe allowed to dispute a charge, but they cannot go below 60 days.

Banks can also ask for documentation to support the cardholder’s claim, including any documentation that will help the issuer fully inform the merchant about the nature of the dispute. So, don’t dispute a charge unless you have some evidence to back up your claim.

Think of disputing your charge like you’re going to court. If you want to make a case against someone or some entity, you need solid, concrete evidence to even have that person arrested and charged. You’ll need some proof of the validity of your dispute for a credit card issuer to even consider your chargeback case.

Finally, it’s worth noting that some banks may go above and beyond the general dispute resolution guidelines to achieve optimal customer satisfaction. Some may even provide a courtesy credit to customers at a loss for the bank.

How Does a Visa Chargeback Work?

Every credit card company handles disputes and credit card issues in a different way. Visa, one of the largest credit card companies, changed its chargeback rules and techniques in 2018 in hopes to streamline and speed up the process.

Visa defines a chargeback as “the reversal of the dollar value (in whole or in part) of a transaction by the card issuer to the acquirer, and usually, by the merchant bank to the merchant.”

At one point, Visa chargebacks took over a month and a half to resolve. However, the process is now mostly automated, meaning customers and merchants don’t have to wait weeks for an issue to be settled.

The process Visa follows is mostly like other companies. When a customer disputes a charge, Visa asks the customer for information about the transaction. An acquirer can then forward that information to a merchant, giving the merchant the option to dispute the customer’s complaint with evidence of its own. The acquirer then collects all of the information and decides who is at fault.

Visa now addresses these disputes from an unbiased perspective, in contrast with its prior perspective as a representative of the customer. Visa’s automated systems act impartially and assign liability to whichever party it deems responsible.

What Is a Return Item Chargeback on a Bank Statement?

A return item chargeback isn’t actually related to the act of disputing a charge through a credit chargeback. A return item chargeback occurs when a bank charges a fee to a cardholder or consumer because of a bounced or rejected check.

A bank will attempt to cash or accept a check for deposit, but the other bank will refuse to make the funds available or a problem will be encountered with the check itself. Thus, a fee will be charged to the writer of the rejected check.

These return item chargebacks will show up on a bank statement as a fee. Consumers want to make sure to avoid this by regularly reviewing their bank statements and always ensuring they have adequate funds before writing a check.

Credit Chargebacks as Consumer Tool

Chargebacks are a potent tool in the consumer’s arsenal, to the point that even threatening a chargeback may scare shady merchants into resolving the disputes themselves. After all, businesses can be seriously hurt if too many chargebacks are requested, even to the point of a bank shutting down its account. Every chargeback also costs merchants a fee, so it’s understandable that merchants want to avoid these if possible.

If the retailer still doesn’t blink, however, don’t hesitate to follow through and take advantage of this key aspect of consumer protection.

 

The post Your Secret Credit Weapon: The Chargeback appeared first on Credit.com.

Source: credit.com

How Does a Line of Credit Work?

How Does a Line of Credit Work?

When it comes to borrowing money, you have a few options like loans and credit cards. With a loan, you receive a lump sum all at once. You then have to repay that amount, plus interest over time. You also have the option of taking out a line of credit from a bank or credit union. A line of credit is more similar to a credit card than to a loan. Let’s take a look a how a line of credit works exactly.

How Lines of Credit Work

A line of credit works like a credit card. You receive a set credit limit and your borrow money as you need. You can get a line of credit in a wide range of amounts, whether you need $1,000 or $100,000 or more. This is different from a loan, where you receive a lump sum all at once and pay it back over time. With a line of credit, you get to spread out your usage over days, months or even years. You only have to repay what you’ve actively borrowed.

For example, say you need some extra money to make some home repairs. A loan would give you $10,000 upfront (if you qualify). You almost always have to start repaying that immediately. On the other hand, you can get a line of credit for $10,000 if you think you’ll need that much. You can borrow whenever you need, say for a new roof one month and then a new kitchen the next. You don’t even have to borrow the entire $10,000 if you need. This can help you borrow in smaller amounts which makes it much easier to pay back.

Just like credit cards, lines of credit also carry interest rates. Your credit report will determine the rate and the amount of the credit line. This rate determines how much your debt grows over time. However, the rate only applies once you’ve actually borrowed and spent the money. Simply having a line of credit won’t accrue interest if you haven’t spent any of it.

To access your line of credit, you can write a special check, on the institution’s website, over the phone or in person at an institution’s branch. This is during your “draw period.” You’ll then pay back the money you borrowed, plus interest, during the “repayment period.”

How to Get a Line of Credit

How Does a Line of Credit Work?

Just like with any credit application, you’ll need to provide the lender with your personal and financial information. This includes your Social Security number, date of birth, home address, employment information, income and more. Often, it’s not enough to list the information. You’ll need to provide proof this information like pay stubs.

Lenders will also look at your credit score and credit report. They want to ensure you’re safe enough to lend to. If you have a history of making late payments or going into debt, you probably won’t qualify for a line of credit. This is especially true since lenders never know when you will actually borrow from the line of credit.

Managing Your Line of Credit

The beauty of a line of credit is that you have it there when you need it. But if you don’t borrow from it, you don’t have to pay a penny of interest. It can be used for home or car repairs, a wedding, college expenses and more.

As with any other type of credit, you should only borrow what you absolutely need. It’s equally as important to pay it back as agreed. Review your bill each month and, if you can, make more than just the minimum payment. If any extra money shows up in your budget, like a raise or a bonus, put that money toward the loan. To stay on top of your payments and avoid accruing too much interest, you might want to automate your payments directly from another bank account.

Should I Get a Line of Credit?

How Does a Line of Credit Work?

Lines of credit are good for upcoming big purchases where the total cost isn’t entirely known. Home repairs are a good example since unexpected costs do tend to spring up. You may also open a line of credit associated with your checking account if you anticipate running into overdraft fees and costs.

You’ll also want to review the fees and rates that may come with a line of credit. Fees can often includes late fees, fees for accessing your account and application fees. There may also be closing costs when you close the deal. Plus, interest rates tend to be higher for lines of credit. They’ll go even higher if your credit isn’t up to par. This will vary from institution to institution so be sure to check the paperwork or ask a representative.

Finally, it’s important to only ever borrow money when you can afford to pay it back. This means not only what you borrow, but any fees and interest you may accrue. Excessive borrowing can get you into serious trouble and debt.

Bottom Line

Lines of credit can really come in handy when you have a big purchase in the future, but you don’t know the exact cost. They allow for much more flexibility in borrowing and repaying the amounts. Plus, if you’re responsible about it, you’ll end up borrowing and repaying much less than you would with a regular loan. Just always remain aware about any fees, rates and due dates so you can stay on top of your finances and debts.

Tips for Staying out of Debt

  • The key to staying out of debt is simply to spend and borrow what you can afford. That way, it will be easier to pay back on time and in full so you don’t incur any late fees or accrue any interest.
  • If you feel yourself about to fall under a pile of credit card debt, you have the option of transferring that credit card balance to a balance transfer credit card. That will give you some time to pay back that amount at no interest. You’ll have to do so quickly, though, before the promotional period ends.

Photo credit: Â©iStock.com/andresr, Â©iStock.com/vm, Â©iStock.com/bill oxford

The post How Does a Line of Credit Work? appeared first on SmartAsset Blog.

Source: smartasset.com

How and When to Talk to a Credit Bureau

Two women wearing pink smile at a phone while drinking coffee in a cafe against a gray wall.

Your credit score can have a huge impact on your life—for better or worse. In many ways, the three major credit bureaus are the keepers of your credit score. They’re responsible for maintaining credit reports, which means you may need to contact them about the information included on yours. While this may seem daunting, it’s really not complicated.

Read on to learn about when to contact a credit bureau and how to do it. Contact information and tips have been provided for each of the three credit bureaus—Experian, Equifax and TransUnion—to make it as simple as possible.

When to Contact a Credit Bureau

Anytime you notice inaccuracies on your credit report, you should immediately contact the credit bureau. This can include misspelled names, incorrect address information, unreported salary changes or erroneous employment information.

Here are some other reasons why you might need to contact a credit bureau:

  • There are credit cards, collections missed payments or anything else on your report that you don’t recognize.
  • You’re in credit disputes with your credit card issuer or financial institution. You can address this with the credit bureaus, which are required to investigate.

For help talking to the credit bureaus and starting a credit repair plan, you can work with a professional credit repair agency. They offer credit monitoring, credit repair services and text alerts so you don’t miss a thing.

Get Credit Repair Help
  • You want to get a hard inquiry removed from your history, especially if it’s an unauthorized inquiry.
  • An account is missing from your report.
  • You want to remove inaccurate or unfair collection accounts from your report. Keep in mind that if you can’t dispute them successfully, these accounts can stay on your account for a number of years.
  • You want to request a free annual credit report.
  • You want to put a temporary freeze or lock on your credit file.
  • You notice any sign of fraud on your credit report.

Information to Gather before You Call

You want to have the right information on hand when you call a credit bureau. Prepare yourself by collecting the following information in advance, just in case:

  • Your name, address, Social Security number and date of birth
  • A copy of your annual credit report
  • Evidence of the inaccuracies or errors, if relevant
  • Personal financial information, such as your mortgage information, depending on the reported issue
  • Any other supporting documentation

Credit Bureau Contact Information

Because there are so many potential reasons to contact a credit bureau—general inquiries, disputes and credit freezes, for example—there are many different phone numbers and online contact forms to wade through. If you call the wrong number, you may simply be told they cannot help you and directed to call a different number, wasting precious time and energy.

To help you avoid that frustration, we’ve gathered several ways you can contact the credit bureaus for common inquiries here.

Equifax Phone Numbers

Reason to Contact

Phone Number

Availability

General inquiries

866-640-2273

 

Service cancellation

866-243-8181

8 a.m. to 3 a.m. (ET)
7 days a week

Request a copy of your credit report

866-349-5191

8 a.m. to midnight (ET)
7 days a week

Fraud alert

800-525-6285

8 a.m. to midnight (ET)
7 days a week

Credit dispute

866-349-5191

8 a.m. to midnight (ET)
7 days a week

Credit freeze

888-298-0045

8 a.m. to midnight (ET)
7 days a week

2017 data breach

888-548-7878

8 a.m. to midnight (ET)
7 days a week

Opt out of mailing lists

888-567-8688

 

 

If you don’t like talking on the phone, Equifax also offers live chat support. You can chat with a member of their customer support team between 8 a.m. and midnight (ET), Monday through Friday.


TransUnion Phone Numbers

Reason to Contact

Phone Number

Availability

General inquiries

833-395-6938

8 a.m. to 11 p.m. (ET)
Monday–Friday

Credit dispute

833-395-6941

8 a.m to 11:00 p.m. (ET)

Monday–Friday

Credit freeze

888-909-8872

8 a.m. to 11 p.m. (ET)

Fraud alert

800-680-7289

8 a.m.to 11 p.m. (ET)

Free annual report

877-322-8228

 

Haven’t received your report

800-888-4213
800-916-8800 (to speak to a representative)

 

Manage your subscription

833-806-1626

8 a.m. to 9 p.m. (ET)

Monday–Friday

 

8 a.m. to 5 p.m. (ET)
Saturday–Sunday

Technical support

833-806-1626

8 a.m. to 9 pm. (ET)

Monday–Friday

8 a.m. to 5 p.m. (ET)
Saturday–Sunday


Experian Phone Numbers

Reason to Contact

 Phone Number

Availability

Experian membership

479-343-6239

6 a.m. to 8 p.m. (PT)
Monday–Friday

8 a.m. to 5 p.m. (PT)
Saturday–Sunday

Free credit report

888-397-3742

 

Credit dispute

866-200-6020

 

Fraud alert

888-397-3742

 

Credit freeze

888-397-3742

 

Cancel membership

479-343-6239

 

ProtectMyID subscription

866-960-6943

 

Opt out of prescreened offers

888-567-8688

 


Alternatives to Calling Credit Bureaus

Not all experts think calling a credit bureau is the best approach. Don Petersen, an attorney at Howard Lewis & Peterson, PC, in Utah, recommends calling a bureau for only basic administrative questions—such as updating an address or asking if a recent data breach has affected you.

For most other issues, Petersen advises his clients to write to credit bureaus or submit disputes online. This provides you with an official record of your request.

If you do prefer to call a credit bureau, take notes during the call and follow up in writing after the telephone conversation. In your follow-up letter, you should include the name of the representative you spoke with as well as details of what transpired in your conversation.

Send important requests—especially disputes—through certified mail. This allows you to track the letter and ensure that the credit bureau responds in a timely manner. Never send original copies of documents, as the bureaus may not return anything you send.

Equifax Mailing Addresses

Reason for Contact

Address

Credit dispute

Equifax Information Services LLC
P.O. Box 740256
Atlanta, GA 30374-0256

Request a copy of your credit report

Equifax Disclosure Department
P.O. Box 740241
Atlanta, GA 30374-0241

Fraud alert

Equifax Information Services LLC
P.O. Box 105069
Atlanta, GA 30348-5069

Credit freeze

Equifax Information Services LLC
P.O. Box 105788
Atlanta, GA 30348-5788


TransUnion Mailing Addresses

Reason to Contact

Address

Credit freeze

TransUnion
P.O. Box 160
Woodlyn, PA 19094

Credit dispute

TransUnion Consumer Solutions
P.O. Box 2000
Chester, PA 19016-2000

Fraud alert

TransUnion Fraud Victim Assistance
P.O. Box 2000
Chester, PA 19016

Request credit report

TransUnion LLC
Consumer Disclosure Center
P.O. Box 1000
Chester, PA 19016


Experian Mailing Addresses

Reason to Contact

Address

Credit dispute

Experian Dispute Department
P.O. Box 4500
Allen, TX 75013

Credit freeze

Experian Security Freeze
P.O. Box 9554
Allen, TX 75013

Privacy

Chief Privacy Officer
Compliance Department
Experian
475 Anton Blvd.
Costa Mesa, CA 92626

Report a relative’s death

Experian
P.O. Box 9701
Allen, TX 75013


Track Your Credit

Under the Fair Credit Reporting Act, you have the right to obtain a free copy of all three reports once each year. These free reports can be accessed on the government-mandated site operated by the big three credit bureaus, AnnualCreditReport.com.

You can also sign up for the free credit report card offered by Credit.com, which provides a snapshot of your credit as well as the ability to dig deeper into the elements that affect your credit score. When you sign up, you’ll also get regular emails with tips and tricks for keeping your credit healthy.

Sign Up Now

The post How and When to Talk to a Credit Bureau appeared first on Credit.com.

Source: credit.com

13 Credit Cards Offering Free Fico Scores

It’s easy to get your credit report for free; in fact, you can get all three copies from each major credit bureau for no charge every 12 months. Unfortunately, while your credit history contains all…

The post 13 Credit Cards Offering Free FICO Scores appeared first on Crediful.

Credit Sesame Will Give You A Free Credit Score, Credit Monitoring And Identity Theft Insurance

Credit Sesame is a service that gives you FREE monthly credit scores and credit monitoring. Here is what they have to offer, and why you should sign up.

The post Credit Sesame Will Give You A Free Credit Score, Credit Monitoring And Identity Theft Insurance appeared first on Bible Money Matters and was written by Peter Anderson. Copyright © Bible Money Matters – please visit biblemoneymatters.com for more great content.

Source: biblemoneymatters.com

What Do New FICO Changes Mean for Me?

Have you ever applied for a credit card, car loan or mortgage? If so, then one of the first things the lender looked at was your FICO score. It has a major impact not only on getting approved in the first place, but also on the interest rate you will receive after approval.

On August 7, FICO announced some pretty major changes in how they will be calculating that ever-important number. Before you can understand how the changes will or won’t impact you, you need to have a firm grasp of the basics.

What is my FICO score?

Your FICO score, or credit score, is a number ranging from 300-850 that shows lenders how reliable you will be in repaying your debts. A bad score is anything below 560, not very good is 560-659, good is 660-724, very good is 725-759, and anything above 760 is classified as great. While it is best to be in the great range, you can sometimes qualify for the best available interest rates with 720 or above.

In order to calculate your credit score, FICO pulls information from your credit reports from the three major reporting agencies: Experian, TransUnion, and Equifax. When banks and other lending institutions consider your application, they look at several factors. The first is usually your FICO score, which will either get you in the door or get it slammed in your face, but after that they consider other aspects of your finances, such as income and the detailed history on the credit report itself.

What are the changes, and how will they affect me?

There will be four notable changes to how FICO evaluates your credit score once the announced new model is released. Some of them will be very good for some people, some of them will be bad for others, and some of them may prove to show negligible changes.

The first, and biggest, is that medical debts will no longer be considered when calculating your score. This is a huge relief. Many otherwise fiscally responsible people go into massive debt when a medical emergency happens. Others don’t even know they owe money on medical bills in the first place, as they thought their insurance was going to cover their costs. When they realize they owe money, the responsible consumers pay it back, but it still leaves a scar on their credit report and, therefore, their FICO score.

With this new change, your FICO score will not be impacted. In fact, if you have no other negatives on your credit report (which would mean you most likely have a halfway decent score), you can expect to see your FICO score increase by up to 25 points.

Changes will also be made in considering debts that you have paid off. Currently, after you’ve paid off a debt, it stays on your credit report for seven years. That will continue to be the case after FICO’s updates go into effect, but FICO will no longer look at those debts, even though they show up on your credit report. If you have consumer debts that you have paid off, and they’re the only thing holding you back, you may see your score improve, as well.

There will also be an update to consider the creditworthiness of people who do not have an extensive report, taking into consideration things beyond just paying your month-to-month bills on time. (A lot of times, the people you are paying those bills to don’t even report that anyways.) Depending on how this is done, it could be a boon for those who are unable to get credit not because they are irresponsible, but simply because they have never chosen to borrow money before.

The final update is not good news for those who hold consumer debt. If you owe money and it isn’t paid in full, you can expect to see your credit score take a hit.

Hold your horses – and your enthusiasm.

While FICO has announced that it will make these changes, the new model has not gone into effect. It will not be ready to release to lenders until late 2014 or early 2015. Even then, banks have to choose to adopt it. Thismodel will be FICO 9. FICO 8 was introduced in 2009, and some lending institutions still have not updated since FICO 7. Just because they are releasing a new model doesn’t mean that your lending institution will apply it to their evaluation process.

Another thing to remember is that while your FICO score gets you in the door, banks will look at your credit report. All of those things FICO ignores will still show up. If your medical debts are deemed too oppressive for you to possibly be able to pay for a mortgage on top of them, you may still be denied. And while FICO will ignore debt that has been paid off and closed, it will still stay on that pesky credit report for seven years for all of your potential lenders to see.

While these changes could be a great way to get your foot in the door with lenders, they’re not a holy grail to your credit problems. The same tried and true wisdom will still apply: Spend responsibly, make sure the information on your credit report is accurate and pay off any debts as quickly as possible.

Femme Frugality is a personal finance blogger and freelance writer. You can find more of her writing on her blog, where she shares both factual articles and esoteric ruminations on money.

The post What Do New FICO Changes Mean for Me? appeared first on MintLife Blog.

Source: mint.intuit.com