Credit reports are issued by national reporting agencies, and the information is collected in order to provide various entities with critical data about your financial situation. This information is personal by its very nature, and it may include your name, address, income, legal history and other relevant details. This information is available to a variety of organizations, which may include prospective employers, rental companies, insurance agents, creditors and other invested interests who use credit scores to evaluate your potential for risk.
The credit report is available upon request from three reporting agencies, but there are limitations on this right. For example, if you repeatedly request a credit report, it could actually affect your score. There are other reasons that your credit score may drop, and this can even include mistakes and clerical errors. Ordering a credit report is the only reliable way to find out if there are errors on your credit report. If you are unaware of mistakes, they can still affect your life dramatically. For example, if you go to a bank and take out a 30-year mortgage loan, the bank may review your credit score to determine the interest rate on this loan. Over the course of the mortgage, the interest rate can add up to thousands of dollars in additional costs. This is just one way that a damaged credit score can cost you a lot of money.
Credit Scores in Iowa
According to the laws created through the Fair Credit Reporting Act, or FCRA, everyone is entitled to receive a free credit report through the main reporting agencies, which are Experian, TransUnion and Equifax. These laws are enforced by the Federal Trade Commission, which is responsible for protecting the rights of consumers under these laws. Even though these rules and regulations are in place to serve the public interest, many people still discover that critical information is misrepresented or inaccurate on their annual credit report. If this happens to you, it is important to take every avenue available to correct the mistakes. Failure to do so can result in a dramatic lowering of your credit score.
When you are getting ready to order a credit report, it is important to use a reputable source of information. For example, there are many websites on the Internet that may promise to provide you with a free credit report, but the scam websites will often attach some kind of condition to this promise. If you go to the correct site, you will be able to get a free credit report without signing up for any kind of trial period or providing your personal information to the secondary website. Always be on the alert for scams targeted at convincing customers to give personal data in exchange for a free credit report that you are entitled to receive by law.
Credit Repair Services
Once you receive your free credit report, you will need to check for errors and mistakes. There are some cases where you can simply contact your creditor directly, and they will be happy to fix any error that appears on your report. However, there are many creditors who are not responsive to direct requests from customers. Credit repair service providers in Iowa can help people who need to use an intermediary in order to get the desired response from a creditor. These service providers may employ qualified and reputable lawyers who understand the language of the creditor. They are often available to negotiate on your behalf, and this is a viable option for individuals who are frustrated with the process of fixing the mistake without the benefit of a legal advisor. Always research these companies in advance to ensure that you are receiving the best possible legal advice from a qualified professional.
Always exercise your good judgment when it comes to these types of organizations. Although many of them are legitimate, there are also quite a few fraudulent companies who take advantage of people who are just trying to fix a faulty credit report. On the other hand, a good lawyer can aggressively demand the correction of various types of errors, omissions, outdated items and suspicious information. Correcting your credit report promptly is essential for improving your quality of life.