Credit reports are generally updated monthly as credit card companies and other creditors supply information to the major credit bureaus. TransUnion, Equifax and Experian rely almost exclusively on information they receive from creditors. The bureaus also review court records for relevant credit information such as bankruptcies and foreclosures.
Supplying Information
Any of your creditors can post information to your credit report. In addition to banks and credit unions, the list includes hospitals, utility companies and landlords. Also reported is child support information along with information from debt collectors. Not all information is reportedly regularly. A utility company may report that you skipped out on a final bill and post the amount on your credit report as a charge-off. The credit bureaus may not update this information unless you pay off the charge or they remove it as outdated.
Fair Credit Reporting Act
The Fair Credit Reporting Act, a federal law, regulates what can and cannot post on your credit report. It also sets guidelines for how long negative information can appear. Negative information that is accurate can stay for seven years. Bankruptcy stays for 10 years. Some credit repair firms advertise that they can remove negative information in 30 days, but the Federal Trade Commission reports those claims are usually bogus.
Pay-for-delete
Creditors and debt collectors can remove information they provided to credit bureaus. For example, a cable TV company may agree to remove an old charge-off if you pay the delinquent bill. The name of the process is "pay-for-delete," but it does not happen regularly. Some creditors will consider pay-for-delete requests on occasion while others won't ever consider it. Some creditors believe that removing negative credit information that is accurate undermines the credit reporting system and provides an incomplete picture of your credit history.
Decisions
The credit bureaus collect information but do not make decisions about your creditworthiness. The bureaus merely pass along information to creditors requesting it. Virtually all standard applications for credit require a credit check. That includes requests for credit limit increases on existing accounts. Creditors review your credit report and score before making decisions on loans and credit cards. Scores of 720 or higher offer the best opportunity for approval, although it is possible to obtain credit with scores much lower than that. Higher scores lead to lower interest rates on loan products.
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