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4 Clarifications On Cfpb Credit Reporting | cfpb credit reporting

Perhaps one of the most important forms of financial reporting for today's credit report user is CFPB credit reporting. It is essentially a standard that all lenders will use in order to determine your eligibility for financing in the United States. This information is used by almost every lender, including banks, credit unions and mortgage companies. In fact, the Fair Credit Reporting Act (FCRA) was enacted to ensure that consumers have access to accurate information regarding their credit and how it is being used. The law requires that all reports be prepared in a uniform format and that they are used by creditors, agencies authorized by the consumer.

The three credit bureaus that have been licensed by the FCRA to provide this service are Equifax Inc., Trans Union and Experian. Each of these companies provides different information, with each bureau basing its data on its own set of credit risk characteristics. As such, the actual differences between the reports from each bureau will vary greatly.

While all three of these credit bureaus have similar data sources, they operate in slightly different ways. For example, the Experian report only looks at the most recent two years of information, while Equifax does not look beyond the past seven years. The Trans Union credit score uses the entire credit history of the consumer, whereas Equifax bases their conclusions on the most recent full year of information. The FCRA says the three credit bureaus must provide the consumer with a copy of their report from each of the three bureaus at no charge. This means the consumer can get an annual report from each of the bureaus for free. Of course, the consumer needs to do more than simply request this report, but it is always a good idea to have a copy available so you can check to make sure everything is accurate.

Once you have obtained a copy of your credit report, you need to read it thoroughly to make sure all the items on the list are accurate. It is easy for items that don't belong on the report to be marked as paid off or open accounts. Also, if your debt is recent, chances are it may be showing up on your credit report as a late payment. If this is the case, contact the credit bureau immediately and instruct them to correct the listing. There are a number of reasons why a creditor would report late payments, such as paying bills late to accommodate a late payment, a missed payment, or even collection debts. The credit bureau doesn't always catch everyone who tries to hide behind a payment delay, so it is up to you to ensure everything is correct.

There are a number of other reasons why your credit report may contain inaccuracies. For example, the date of birth on your social security card could show a different birth date than it really is, or a person may have listed a college they never attended. If you notice any mistakes on your credit report, you need to write down both the errors and the remedy so you can contact the credit bureau. Even if the error is minor, getting the mistake corrected can make a huge difference in your credit score.

There are several credit bureaus that offer credit reports and you should receive a free copy of your credit report from each one once per year. To avoid any issues with inaccurate information, do not attempt to challenge or dispute the errors on your credit report. Doing so could cause the credit bureau to mark the disputed item as being “satisfied” instead of “corrected.”

If you find an error on your report that you want to dispute, first review the negative information on your credit report. Then, use the disputes process available at the Annual Credit Report website to write the company requesting the correction an email stating the error and the details of the dispute. They will then give you a time period within which to respond. They will outline all of the details regarding the dispute and will ask you to sign a document acknowledging that you are making the claim in question (this prevents others from making the same claim).

Once your dispute has been received, it is important to follow up. Most companies will send you a letter asking for more information. Make sure you follow up on the dates outlined in the letter. Most times, the errors will be corrected. But, if they are not, it may be necessary for you to contact the bureau and request them to print out a new credit report with the corrected information.

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