What is a Credit Report?
A credit report is a tool used by various types of entities to assess the potential credit risk of consumers. It contains a variety of information about the consumer, and this includes source of income, payment history, bankruptcy records, mailing address, social security number and other personal data. Credit reports can affect many aspects of your life. The credit score is strongly linked to the interest rates offered by the banks on various loans. This includes mortgages and car loans, for example. However, it is possible to have an unusually low credit score even if you pay your bills on time and have a steady source of income. Errors, mistakes and faulty information are routine on credit reports, but the consumer is responsible for initiating the correction process.
Federal laws regulate the top three credit reporting organizations, which are Experian, Equifax and TransUnion. According to the Fair Credit Reporting Act, or FCRA, each of these national companies are required by law to issue a free credit report to consumers every year. If you are concerned about your credit score, the first thing you need to do is look at your credit report. If you see any mistakes or incorrectly reported information on this report, you need to correct this record, which will change your credit score. However, there is no way to tell if the creditor will cooperate with your request for a change. If you are in this situation, a qualified credit repair service provider might be able to help.
Credit Repair in Connecticut
A bad credit score may have a negligible impact on your life until you require credit for some reason. It could be an emergency situation where you need to take out a revolving line of credit, or it could be an installment loan issued from a bank. For example, if you are planning to finance a car, you will probably work with a company that can change you interest rate based on the credit score that shows up on your credit report. If they offer a high interest rate on your loan, the amount you pay will be noticeably higher than expected. Over the life of the loan, the total amount you pay could add up to hundreds or even thousands of dollars. This is known as the cost of borrowing money. In general, the lower you credit score, the higher the cost of borrowing money.
When employers look at a job application, they are still legally allowed to use your credit score against you. Rental agencies, insurance companies and other organizations can also use this method of discriminating against applicants with low credit scores. Unless this method of classifying the credibility of the applicant is changed, the only available course of redress it to contact the creditors who depressed your credit score in the first place. However, this process is not always user-friendly, and many consumers who attempt direct contact are ignored by the creditor. If you are facing this situation, you might need assistance from a qualified credit repair service.
Credit Repair Service Providers
There are a series of laws that govern the credit repair industry in Connecticut. Businesses who provide this service are required to comply with various state and local laws. Although these regulations are in place to protect consumers, it is still important to always exercise your good sense of judgment when dealing with these entities. For example, if a credit repair service turns out to be fraudulent, you may have the right to sue them under Connecticut laws; however, preventative measures can still produce the best results. Research each company carefully before employing their services.
Credit repair services are available to individuals who wish to change incorrect information appearing on their credit report. Some creditors are more likely to be cooperative with a lawyer who negotiates on your behalf. However, it is important to always exercise your due diligence when selecting a representative to work on your behalf. Never be shy about asking questions, and try to get a recommendation from someone that you trust whenever possible. If you decide to use the services of a credit repair provider, it is possible to improve your credit score after any mistakes or errors are corrected.