CONSUMER INFORMATION

What Exactly is a Credit Report?

A Credit Report is simply a report that contains a mathematically calculated numerical expression based on a statistical analysis of a person's credit files and credit history that is used to indicate the overall risk and creditworthiness of a consumer.

The most commonly recognized Credit Report format is one based on Fair Isaac Co., called the FICO score. It scores consumers in a range of 300 - 850. The higher the ranking, the less of a risk you appear to be to potential lenders.

A score of 620 has historically been the dividing line being "prime" and "sub prime", but the numbers and perceived risk vary with economical factors and are ultimately controlled by each individual potential lender and their willingness to assume risk.

Don't Be Scammed!

There are hundreds of businesses and organizations that claim to be able to "fix" your bad credit by removing information from your credit report. Don't be fooled! Accurate information cannot be removed from your reports. You have the right to challenge any information that you believe is in error and even to insert your comments, but if information is accurate, it will not be removed by the Credit Reporting Agencies.

What Are Your Rights As A Consumer?

Many people do not realize that they have specific legal rights when it comes to their credit status. The FCRA (Fair Credit Reporting Act) provides certain rights to you and imposes requirements upon potential lenders. Some of these rights are outlined below.

• You can dispute inaccurate information that appears on your Credit Report with the source of the information.
  
  
• You can dispute inaccurate information with the CRA (Credit Reporting Agency).
  
  
• Inaccurate information must be corrected or deleted by the CRA. They do not have the option to decide to remove it or not. If you notify them of inaccurate or outdated information, they must remove it from your file.
  
  
• You must be told if information in your file has been used against you.
  
  
• Outdated information may not be legally reported.
  
  
• You may seek damages from a CRA or from an entity or individual that provides information to a CRA by filing suit in federal court.
  
  

If you have questions about anything on your credit report, you are encouraged to be proactive. Ultimately, you will be the one that suffers from inaccurate information. Chances are good that if you don't keep an eye on your credit status and promptly correct any inaccurate information, that no one else will.

What About Identity Theft?

Identity theft is a growing problem around the world and particularly affects citizens in developed countries, including the U.S. There are several things that you can do to help fight this serious threat.

• OBTAIN COPIES OF YOUR CREDIT REPORTS REGULARLY
  The FCRA stipulates that each of the three major Credit Reporting Agencies must provide one credit report each year to each consumer in their files upon request. By staggering your request to each CRA, you can effectively receive up to 3 credit reports throughout the year, one every 4 months.
  
  
• REPORT SUSPICIOUS ACTIVITY IMMEDIATELY
  Watch your credit reports and all of your credit accounts for any activity that appears suspicious. Report any such activity immediately to the lender or entity providing the credit to you. This includes mortgage lenders, credit and debit cards, lines of credit, car loans, etc. Identity thieves are most successful when their targets are not aware of the dangers. The longer an identity thief can go undetected, the longer he or she can pass themselves off as you!
  
  
• BE VERY CAUTIOUS ABOUT GIVING OUT PERSONAL INFORMATION
  Telemarketing (soliciting by telephone) is one of the most successful ways for identity thieves to gather information about you. Never, ever give out any information to an incoming phone call, even if they claim to be from a known lender. An identity thief usually must have at least 3 or 4 pieces of information about you to steal your identity. If they are only missing one piece of information and pass themselves off to you as legitimate, you may knowingly provide them with the missing piece to their puzzle.
  
  
• DON'T BE AFRAID TO SAY "NO"
  Don't be afraid to say "no" to someone that is trying to extract information from you. Explain to them, if you feel the need to do so, that you are not in the habit of giving out personal information over the phone. Be wary of callers seeking donations for seemingly legitimate causes, such as "State Troopers Organization", or "helping to clothe needy children in your area". Scammers are completely without morals and will prey on charitable hearts whenever possible.
  
  
• CALL 1-877-ID-THEFT (1-877-438-4338)
  If you have been a victim of fraud (confirmed or suspected), or if your purse or wallet has been stolen or lost, call the number above. Even if you think you are a victim, but not entirely sure yet, it never hurts to be overly protective about your personal information.

Associated Credit Bureau's, Inc.