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MICHIGAN RESIDENTS CAN NOW CHECK CREDIT WITHOUT A FEE
Valuable tips for consumers who need help understanding
how to read their reports.
February 28, 2005, Lansing, Mich. ? As of March 1, Michigan consumers will have the opportunity to request a free credit report once every 12 months from each of the three national consumer credit reporting agencies (Experian, TransUnion and Equifax). Great news, right? Only if you have the know-how to understand the information provided on each report. Your credit report includes:
· Information from your credit applications: name, addresses, phone number, social security number, date of birth and current and previous employers.
· Information from your creditors: account information such as the date opened, credit limit or loan amount, balance, monthly payment and payment pattern.
· Information from public records: federal district bankruptcy records and state and county court records of tax liens and monetary judgments.
· Information from the credit reporting agency: The names of those who have obtained a copy of your credit report.
The Michigan Bankers Association and GreenPath Debt Solutions offer these tips on what you should look for on your report:
· Make sure all the information is correct. You can dispute information that is incorrect, obsolete or does not belong to you to have it removed from your report.
· Identify accounts that you do not use on a regular basis. You should close any accounts you do not use because a high number of open credit lines could increase your vulnerability to fraud. You may have open lines of credit that you thought were closed years ago, but they will remain open until you request in writing that they be closed. Request that the creditor reports the account as "Closed by Consumer."
· Look for signs of fraud or identify theft. Warning signs include lines of credit that do not look familiar, or account transactions that you do not remember making.
· Make sure information is not too old. Bankruptcy information remains on your report for 10 years, unpaid tax liens remain for 15 years, and missed payments and most public record items remain for 7 years.
"Every consumer needs to know what is on their credit report," said Jane McNamara, President and CEO of GreenPath Debt Solutions. "The information in your credit report impacts so many aspects of your life, it's critical that you understand it and know how to improve your credit score."
To receive a copy of your free credit report, call 877-322-8228 or request a copy through www.annualcreditreport.com. You have the option of receiving all three reports at once or staggering them throughout the year. You will not receive your credit score unless you pay a fee. You may also contact the credit bureaus individually:
o Equifax: Call 800-685-1111 or visit www.myfico.com.
o Experian: Call 888-397-3742 or visit www.experian.com.
o Trans Union: Call 800-888-4213 or visit www.transunion.com.
It's important to note that the free credit reports do not include a credit score.
Your credit score is critical because it impacts your ability to obtain credit, the interest rates you are charged, and even your insurance rates. The score is calculated by a mathematical equation that identifies a consumer's level of future credit risk.
"Everyone should know their credit score," said Dennis Koons, President and CEO of the Michigan Bankers Association. "While the actual method of calculation of a credit score varies from bank to bank, it has been a very accurate tool to help us insure that our depositors' money distributed as loans is paid back to our banks and our depositors."
You should contact your local bank prior to applying for a loan if you have any reason to believe that errors exist in your credit report that will affect your credit score.
For more information contact GreenPath Debt Solutions, which offers credit reports with scores and certified counselors at 28 offices throughout Michigan to assist you in reviewing your report. Visit GreenPath's web site at www.greenpath.com or call 800-550-1961.
Established in 1961, GreenPath Debt Solutions is also known as Consumer Credit Counseling Service. The non-profit company provides free counseling, customer-focused debt management solutions, and financial education programs designed to help people enjoy a better quality of life.
The Michigan Bankers Association represents the banking industry in Michigan, composed of 195 banks with over 3,000 branches, employing over 60,000 people. The MBA works to advance a positive business environment for the Michigan banking industry and to foster safe, profitable, and successful banks, which in turn promotes strong communities and economic activity in Michigan.# # # | |