Creators Syndicate

FIGHT BACK! BY DAVID HOROWITZ 

Protecting Your Credit History 

        For most people, the most important indicator of  financial
health, after employment and income, is their  credit records. Credit
reports compiled by the major credit  reporting bureaus determine
whether they will qualify for  home mortgages, auto loans, credit cards
and major purchases.  Credit reports may also affect their ability to
rent homes or  apartments and influence prospective employers'
decisions on  hiring. 
        The nation's three major credit reporting agencies, TRW, 
Equifax and Trans Union, maintain files on about 170 million Americans
each. Those files are constantly being updated with  reports from
retailers and lenders all over the country. At  best, a credit report
is a comprehensive summary of an  individual's financial history and
credit worthiness. At  worst, an inaccurate report can frustrate a
person's efforts  to manage their credit and finances. 
        A study by Consumers Union found that nearly half of all 
credit reports contain errors, and one fifth of those errors  were
serious enough to deny a person credit. And yet, most  people have
never seen a copy of their credit report and have  no idea what it
contains. The first indication they have of a  problem is when they are
turned down for a loan, an apartment  or a job. 
        Reviewing and correcting your credit history is not that 
difficult -- or expensive. TRW provides one free copy to  individuals
each year on request. TRW has also simplified its  report format to
make it easier to read and understand. Trans  Union and Equifax charge
$8 for a copy of your report. 
        The first step in protecting your credit is to get a  copy of
your report -- preferably, from all three bureaus.  Review those
reports carefully for errors. There may be all  kinds of stuff in there
that has nothing to do with you. The  most common source of
misinformation is file merging -- data  on other people with similar
names, social security numbers  or addresses that ends up in your file
by mistake. 
        You have a right to challenge those errors and have them 
removed from your file. If the credit-reporting bureau cannot  verify
negative information, it must be deleted from your  report. What you
cannot do (and what high-priced credit  repair services cannot do,
either) is remove accurate and  relevant entries like a bankruptcy,
loan default or  repossession. If it's yours, you're stuck with it.
Even so,  you are entitled to add your own explanation to the report. 
        The process for correcting your credit file is explained  on
the copy of the report you receive from the bureau. It  takes time, so
be sure to keep careful records of all your  correspondence and phone
calls with the reporting bureau.  When you send back the corrections or
explanations, follow it  up with a request for your corrected report.
Check it  carefully for errors that may have reappeared. It happens -- 
frequently. 
        Credit reporting bureaus are usually listed in the  Yellow
Pages under "Credit." You can also request a copy of  your credit
report by calling these toll-free numbers: 
        Equifax: (800) 685-1111 
        Trans Union: (800) 851-2674 
        TRW: (800) 422-4879 
        If you are having trouble with your credit, you can  contact
the National Foundation for Consumer Credit at (800)  388-CCCS -- or
your local non-profit Consumer Credit  Counselors office. COPYRIGHT
1994 CREATORS SYNDICATE, INC.