Credit Reports

Apache is functioning normally

Save more, spend smarter, and make your money go further

I received the following question from a Minter via the Mint.com Facebook page:

Question: “John, I just got all of my credit reports for free and there are some items that are old, accurate, and just downright bad. I’d love to get rid of them. The materials that came with the credit reports make it pretty clear that I can dispute information that’s incorrect and get it corrected.

But I have a different dilemma: I have information that I know is correct that I’d like to get removed. Is there any downside to disputing information on a credit report that you know to be accurate? Can I get in trouble?”

Answer: First things first, the Fair Credit Reporting Act gives each of us the right to challenge information on our credit reports with which we don’t agree. There’s nothing in that law that prohibits consumers from disputing information on their credit reports for any reason.

Further, “accurate or inaccurate” is not the only variable that can cause the credit reporting agencies to remove something from a credit report. Your credit report information must be able to be verified, right or wrong.

So, if you disputed something from your credit reports and the furnishing party failed to respond to the credit bureaus, the item would be deemed unverifiable and would be removed.

It may have been perfectly accurate, but because the lender couldn’t or wouldn’t confirm its accuracy –bye, bye negative information!

Is it wrong to dispute correct information?

I’m not the morality police, and you can do what you want to do, but you do have the right to challenge any information on your report — whether it’s correct or not.

It’s your right to have correct and verifiable information on your credit reports. I can’t speak for them, but I imagine they’d also want your credit report to be fully accurate and verifiable.

How to file disputes with the credit bureaus

1. Request credit report

In order to find any errors or unattractive figures to dispute, you’ll first need to obtain an updated copy of your credit report from each of the credit reporting bureaus—Experian, Equifax, and TransUnion.

one free credit report each year which you can order from annualcreditreport.com or you can access your credit score right in the Mint app. Many banks and credit card companies will also allow you to pull your credit report on a monthly basis.

2. Identify errors

Once you’ve obtained a recent credit score, you should carefully review the information displayed. Is the credit history right? What about your credit balance? Are there any errors or items that may be inaccurate? If yes, print out the report and follow through with these next few steps to dispute all inaccurate or negative items on your credit report. 

3. Fill out a credit bureau dispute form

Each of the credit bureaus has an area of their website dedicated to credit report disputes. Here, you’ll find instructions and dispute forms for each. To make it easy on our Minters, we’ve done the heavy lifting for you and collected all of the resources you’ll need to dispute something on your credit report. 

Here’s where to find dispute forms for all three major credit bureaus:

Note: If the information you want to dispute appears on all three reports, you’ll need to file a separate dispute with each of the credit reporting bureaus.

4. Print out your credit report and notate the errors

In step two you printed out your original credit report. Now, you’ll want to notate the errors you noticed on your report by circling the items you wish to have changed. It’s important that the credit bureau knows exactly what your request is about, so be extra careful here and make sure the information you’re citing here matches the description on your credit report dispute form.

5. Send your dispute to the credit bureau(s)

In order to learn how to dispute a credit report and win, you’ll likely want to include as much information as possible to support your case. That said, you’ll need to include some items in addition to your dispute claim and your credit report. 

Depending on what type of things you want to dispute on your credit report, your case may require different documents. For example, if you are trying to remove a closed credit card account from your score, you might include a record of the closed account with your documents. If you want to dispute a collection amount, you should provide proof of the settled debt or a receipt that shows you made the required payments.

Once you have all of your documents put together, there are a few ways you can approach the dispute process:

  • Online: For many, the easiest way to go through the dispute process is by simply uploading your dispute and relative documents online (you can use the links referenced above to do so).
  • By phone: You can also file a dispute by phone with Equifax and TransUnion—Experian does not offer this option. 
    • Equifax: 1-866-349-5191
    • TransUnion: 1-800-916-8800
  • By mail: Lastly, you can send your dispute and documents by certified mail with a return receipt.

Experian

P.O. Box 9701 

Allen, TX 75013

Equifax

P.O. Box 740256

Atlanta, GA 30374-0256

TransUnion

P.O. Box 2000

Chester, PA 19016

Some words of advice: how to dispute credit report and win

Wondering “does disputing credit work?” Unfortunately, it’s not always that simple…but there are certainly some things you can do to increase your odds. If you do file disputes with the credit bureaus, you should think about how to word your letter. I’m not sure I’d go so far as to tell them you want accurate information removed. I’d simply ask that they verify what’s already being reported.

After you file your dispute, the credit bureaus will contact the furnishing party, normally a lender or a collection agency. These parties are formally referred to as “data furnishers” or “furnishers” for short.

It’s their responsibility to investigate your claim and get back to the credit bureaus, normally within 30 days, but there are some scenarios when it can take 45 days.

If they confirm the accuracy of the credit reporting, then you’ll likely have to live with it until the credit bureaus have to remove the item, which normally takes 7 years for the bad stuff.

How to re-dispute an item

Sometimes deleted credit report items disappear only to come back to haunt you some weeks, months, or years later. You can certainly choose to re-dispute the item with the credit bureaus. They’ll likely send another dispute form (called an “ACDV”) to the furnisher asking them to investigate the item again.

However, unless you’ve contacted the furnisher and convinced them that it’s wrong, they’ll likely send the same response to the credit bureaus.

If you choose to dispute the item again, you should be aware that the credit bureaus do not have to honor your request unless you provide some new information.

The Fair Credit Reporting Act allows the bureaus to consider repetitive disputes to be frivolous and ignore them.

Takeaways: How to dispute credit reports and win

  • You’re entitled to accurate and verifiable information on your credit report
  • You can file a dispute with the credit bureaus by phone, mail, or online
  • When filing a credit dispute, include as much information as possible to support your claim 
  • If your dispute is rejected, you can choose to re-dispute the claim with the credit reporting bureaus

Do you have a credit questions for John Ulzheimer? Head over to the Mint.com Facebook page and ask away!

Save more, spend smarter, and make your money go further

  • Previous Post
    What’s the Difference Between a Living Trust and a Will?

  • Next Post
    The Complete Guide to Scholarships for Students with Disabilities

Browse Related Articles

  • Credit Info

Does Disputing a Credit Report Hurt Your Credit Score?

  • Credit Info

How To Correct Credit Report Errors

  • Credit Info

Chapter 10: What to Do About Credit Report Errors

  • Credit Info

Can Disputing Information On My Credit Report Backfire?

  • Credit Info

How to Fix Credit Boo-Boos

  • Credit Info

3 Ways to Dispute Items on a Credit Report

  • Credit Info

Is Credit Repair Right for Me?

  • Credit Info

The 7 Steps of Filing a Credit Dispute

  • Credit Info

How to Get Rid of Closed Accounts on Credit Reports

  • Credit Info

A Guide to the 3 Credit Bureaus: Equifax, Experian, and…

Source: mint.intuit.com

Apache is functioning normally


©
2023 MintLife Blog.

All rights reserved. Intuit and QuickBooks are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.

Source: mint.intuit.com

Apache is functioning normally


©
2023 MintLife Blog.

All rights reserved. Intuit and QuickBooks are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.

Source: mint.intuit.com

Apache is functioning normally

While not all healthcare providers will report unpaid debt to credit bureaus, medical debt that ends up on your credit report could damage your credit score in the long run. That said, there’s a little sigh of relief for consumers where medical debt reporting is concerned.

In a process that started in July 2022, the three major credit bureaus, TransUnion, Experian, and Equifax, introduced the first stage of changes to medical debt reporting. This included extending the time period before unpaid medical collections appear on credit reports from six months to one year. 

Additionally, paid medical bills are no longer included in credit reports, meaning they will not impact credit scores.

Further, with effect from April, 2023, medical debt for consumers who initially owed less than $500 has been removed from consumer credit reports. 

These changes will benefit you in the following ways:

Time to Renegotiate the Bill with the Hospital

If a medical bill was initially reported but is later removed from your credit report, you have a full year which you can use to renegotiate, dispute, or work up payment plan with the hospital or healthcare provider before the bill can be re-added to the credit report.

This eases the strain and stress of debt payment, consequently, reducing the chances of getting a low credit score.

Opportunity to Consolidate Multiple Medical Bills

There are various ways to consolidate your medical debts. For example, you can pay it off with a zero-interest credit card and then pay off the credit card balance over time. Many credit cards offer promotional periods with zero interest rates for a certain period of time, typically between 12 to 18 months. 

Other ways to consolidate your medical debts include taking a personal loan, taking a home equity loan, and enrolling for a debt management program.

How Changes in Medical Debt Reporting Impact Credit Scores

For starters, a longer grace period increases your chances of preventing your medical debt from ending up on credit reports.

Initially, like all other debt, paid medical debt would still reflect on your credit report for seven years. With negative information on your credit report, your credit scores continue taking a hit. 

The removal of paid medical debts and the exemption of debts of $500 and below from credit reporting, therefore, gives your credit scores a great boost. 

There are significant benefits of higher credit scores:

Better Loan Terms

Lenders view consumers with low credit scores as high-risk and will likely either turn you down or offer less favorable loan terms. Higher credit scores can provide you with greater financial flexibility and potentially save you money on interest charges. This is because lenders see you as a responsible borrower, making you more likely to be approved for loans, mortgages, and car leases.

You may also get lower interest rates, longer repayment periods, or larger loan amounts.

Increase in the Pool of Credit Cards you Can Qualify

A higher credit score can increase your chances of qualifying for credit cards with better terms. Credit card issuers use credit scores to work out your creditworthiness, and with a higher score, you may qualify for credit cards with better rewards programs, favorable interest rates, and higher credit limits. 

Having a wider range of credit card options could allow you to choose a card that better fits your spending habits and financial goals. That said, it’s important to use credit cards responsibly and to avoid taking on too much debt, which could harm your credit score in the long run.

The Take Away

No one plans to have a medical debt, as it may come as an emergency. However, even with insurance coverage, not all expenses may be fully covered. This can put pressure on your finances in addition to your health. The  changes in medical debt credit reporting is predicted to help more than 70% of consumers to not only have more time to manage their medical debt but also do the same with the least negative impact on their credit health. 

Finally, it is advisable to regularly check your credit report to ascertain the implementation of the changes.

Source: creditabsolute.com

Apache is functioning normally


What Is a Credit Report and Why Does it Matter? – MintLife Blog

Skip to main content

financial wellness. Your credit report includes your revolving accounts — such as credit cards and home equity lines of credit — as well as non-revolving accounts like school and car loans. Credit reports also note any missed payments, the length of your credit history, and your utilization rate on each account. On the whole, the report acts as a central location for measuring your current credit health in detail.

This vital collection of data gathered by a credit bureau helps calculate your credit score and inform potential lenders, landlords, and even employers about your financial wellness, habits, and routines. Your credit report is also a place to keep yourself on track. View your borrowing habits at a glance, make adjustments to possibly raise your credit score, or even catch fraudulent activity. Overall, understanding your credit report is a crucial step in gaining financial confidence.

What Information Is Included in a Credit Report?

You may still be wondering: what is a credit report exactly and how much data does it include? Credit bureaus collect a range of information, from basic, personal data to detailed borrowing history in order to paint a picture of your credit habits. Identification details clarify who you are, where you’ve lived, and a bit about your life. They will list your full name and any alternately used names, your birthday, current and former addresses, social security numbers, and your phone number.

The meat of the credit report includes your account history including the types of credit accounts, how long they’ve been open, and their credit limits. Each month, your balance will rise or fall on your report based on payments or charges. This in turn affects the utilization rate on each card as well. Each account will also note your payment history, noting any late payments for up to around seven years. Your credit report will also include the number of recent hard inquiries, which usually occur when you apply for a new credit card or loan.

Certain public records and legal details — such as lawsuits — may also be listed on your report. It also lists if you’ve filed for bankruptcy, received a tax lien or had a bill sent to a collection agency. Though specifics vary, the majority of these details are wiped from your report after seven years, so there are often ways to improve your credit standing over time.

How Does Information Get on Your Credit Report?

A credit bureau, also known as a credit reporting agency, gathers this information in one place so you don’t have to. Though there are hundreds throughout the world, the three main U.S. reporting agencies are TransUnion, Equifax, and Experian. They receive information via lending companies, courts, and local government to build your credit record. Every month, an assortment of data transfers from these locations to the credit bureau database.

If you open a new credit card, make a purchase on your store card, or pay down a balance, this data is sent to update your report. The agency organizes the data and displays information on your credit report in a clear layout for you or a potential lender to view. This constantly updating system means that your credit score may fluctuate at times. It also allows you to take immediate action on any troublesome accounts or in the case of identity theft.

Why Is It Important to Get a Credit Report?

Credit reports are an excellent tool for guiding large financial decisions. Say you’re looking to purchase a home in the next five years. Your report allows you to fully assess how to raise your score and which credit accounts most strongly affect your overall financial balance. Your report is also a glimpse into why your credit score has remained low or stagnant. It could be helpful to request a report before applying for a new credit card or transitioning to a new phase in life like graduate school.

Checking your credit report at least once a year, even if you are not planning any large financial changes, is often suggested for several reasons. Credit reports allow you to catch any discrepancies either in how your data was reported or if someone attempted to open an account under your name.

Where can you get a free credit report? Free credit report programs, like Turbo, can give you a glimpse into your score and history. If you’re looking to improve your credit score, these tools may be useful for frequent tracking and do not count against your credit as a hard inquiry.

How Does Your Credit Report Impact You?

Potential lenders and employers may check your credit report for the same reason you check in on yourself. Your credit report may signal that you can be trusted to make timely payments and prioritize your financial health. Employers have been known to check credit reports in order to confirm you’re able to stick to contracts and agreements.

Credit reports are most commonly used to determine approval for loans, credit limits, and interest rates. If you have some troubling details on your account, lenders may protect themselves by offering higher interest or lower credit limits until you’ve proven a strong history of payments. On a higher level, credit reports affect your mortgage interest rate or simply your likelihood of being approved for the mortgage in the first place.

In some cases, your credit report could also affect your insurance rates and other monthly bills. Some utility companies and cell phone companies determine offers and down payments based on your credit score. Overall, the healthier your credit report, the more chances you’ll have to practice good borrowing habits with a range of accounts.

A credit report is a detailed tracking tool of your borrowing and repayment history. The greater you understand your credit report, the more it can act as a tool for financial growth. Feeling confident about borrowing and managing debt comes over time, and your credit report is there to help track your progress along the way.

  • Previous Post
    What Percent of Your Income Should Go Towards Rent?

  • Next Post
    Can Gratitude Fix Your Relationship With Money?

Browse Related Articles


Browse by Topic

Source: mint.intuit.com

Apache is functioning normally

.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrappadding:23px 23px 23px 23px;background-color:#f9fafa;border-color:#cacaca;border-width:1px 1px 1px 1px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-contents-titlefont-size:14px;line-height:18px;letter-spacing:0.06px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:700;text-transform:uppercase;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrap .kb-table-of-content-listcolor:#001c29;font-size:14px;line-height:21px;letter-spacing:0.01px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:inherit;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrap .kb-table-of-content-list .kb-table-of-contents__entry:hovercolor:#16928d;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-list limargin-bottom:7px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-list li .kb-table-of-contents-list-submargin-top:7px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:beforebackground-color:#f9fafa;

Active-duty military members face incredible stress. Whether they’re in combat zones or serving during times of peace, our service members experience challenges civilians may not consider, including being deployed and away from loved ones for months at a time. 

So if you’re serving in the military, you may not be focused on opening new credit accounts or taking out loans. But putting an active-duty alert on your credit report makes it harder for thieves to open an account in your name, which can’t replace precious time with your family, but it can help alleviate concerns about identity theft while you’re deployed.  

What Is an Active-Duty Alert?

An active-duty alert tells potential creditors and lenders you’re deployed and they should verify your identity before giving you credit. It appears on all three of your credit reports from the major credit bureaus: Experian, Equifax and TransUnion.

An active-duty alert functions in the same way as an initial fraud alert. Before granting credit, the lender should make a phone call to determine that you were the one who filled out the application. 

Once you apply for an active-duty alert with one of the three major bureaus — Equifax, TransUnion, and Experian — that bureau must share the information with the other two credit bureaus. That means you only need to fill out the online application or mail the paperwork once. If you’re deployed, you can give a representative power of attorney (legal authority) to verify your identity or remove the active-duty alert for you. 

As an added benefit, with an active-duty alert on your credit report, you won’t receive prescreened credit card or insurance offers for two years after placing the alert. You can also receive two free credit reports from each credit bureau the year you place an active-duty alert. 

How Active-Duty Alerts Work

Once you fill out the application for an active-duty alert, it becomes harder for someone — including you — to take out a loan or apply for credit in your name. That can protect you from headaches and stress while you’re serving your country. 

When a creditor sees an active-duty alert on your credit file, they’re supposed to call the phone number you provided to verify your identity before processing the application. You can easily remove the active-duty alert or change the phone number with the credit bureau where you initially filed the alert. 

How Long Does an Active-Duty Alert Last? 

An active-duty alert lasts for one year from the date it’s granted or until you remove it, whichever comes first. While you only have to apply for an active-duty alert with one bureau, you must remove them from all three of your credit reports individually.

However, your name stays off mailing lists for prescreened credit card and insurance offers for two years. You can also reapply for an active-duty alert after your first one expires. 

If you’re a victim of identity theft, it’s better to apply for an extended fraud alert, which stays on your credit report for seven years. 

How to Set Up an Active-Duty Alert

Setting up an active-duty alert is easy and free. You can do it online or by mail. The process differs slightly among all three credit bureaus, but the basic process is similar. 

  1. Choose where you’d like to file your active-duty fraud alert. Decide if you’d like to file your alert with TransUnion, Experian, or Equifax. The credit bureau you use will pass the information on to the other two.
  2. Gather the appropriate information. You must provide your legal name, Social Security number, and address. 
  3. Submit the form. If you typically use a particular bureau to manage your credit score, use that one. Otherwise, you can use any of the three. You have the option to mail the form, use the website, or call the toll-free number.
Equifax
P.O. Box 105069
Atlanta, GA 30348-5069

800-525-6285
Online 

 Experian
P.O. Box 9554
Allen, TX 75013

888-EXPERIAN (397-3742)
Online

 TransUnion
P.O. Box 2000
Chester, PA 19016

800-916-8800
Online

Final Word

It may not be as easy to keep tabs on your finances or review credit card statements while you’re serving. But placing an active-duty alert on your credit reports makes it harder for thieves to steal your identity or open credit cards in your name. 

But you don’t have to stop there. TransUnion provides an additional service. TransUnion Active Duty Credit Monitoring offers unlimited access to your TransUnion credit report daily and emailed alerts if the service detects any significant changes to your credit report. Your subscription lasts for two years. After that, you may have to recertify your status as active-duty military. 

Today’s tools make it easy for military members serving at home or overseas to keep tabs on their credit and manage their financial future. Leveraging active-duty fraud alerts, TransUnion’s credit monitoring, and financial products designed for active military members and veterans can help you save money and protect your credit as you serve your country.

Dawn Allcot is a full-time freelance writer and content marketing expert, specializing in personal finance, technology, real estate, and insurance. Her work has been widely published across the web, including on Bankrate, The Balance, Solvable, and the award-winning Chase News & Stories portal. Dawn is, additionally, the founder of GeekTravelGuide.net, a travel, technology, and entertainment website for the geek in all of us.

Source: moneycrashers.com

Apache is functioning normally

Save more, spend smarter, and make your money go further

“John, I sold some stock and used the proceeds to completely pay off two credit cards.  That takes my credit card debt from almost $17,000 to zero.  It also reduces my debt-to-limit ratio from over 50% to 0%.  Needless to say I’m excited to see what happens to my credit scores as a result. How long will it take for my credit scores to reflect this reduction in debt?”

The answer to this question is actually quite simple and it opens up a topic on which I don’t believe I’ve ever written in my 22 years in the credit industry.

The answer to the reader’s question is that it will likely not take more than one month for your scores to reflect this reduction in debt, and if your timing was good it could take much less than that.

The reason it could take up to one month for your credit scores to reflect the reduction in credit card debt is because it could take up to one month for the credit reports to be updated to show the zero balance on those two credit cards.

Credit scores are 100% dependent on the information in your credit reports, so even though your balances are zero today, your credit reports also have to reflect the zero balances in order for your scores to benefit.

This leads me to the next issue, which is the changing of your credit scores. The question suggests that credit scores change over time as data on your credit report changes.

And while this is a completely reasonable assumption, it’s not actually true. Credit scores do not change over time as your credit report data changes.

Changing Vs. Recalculating

Credit scores are not a part of your credit report. They are not “updated” like, for example, your credit card account is updated.

When your score is calculated for a lender it is not maintained as part of your credit history.

It is calculated, discarded, and then recalculated the next time a lender pulls your credit reports and requests a credit score. So, the answer posed in the title of this article is, “Never.”

Your credit score never changes.

Credit Score Tracking Services

There are websites like Credit Karma that will give away free credit scores and then track them for you over time but that’s different.

The score tracking is one of their features. The credit bureaus don’t track your scores over time as they’re calculated.

If your VantageScore credit score or FICO credit score is 730 on Sunday and 780 the following Sunday, it gives the impression that your score increased by 50 points during the week.

That’s not true. Your score was simply recalculated a week later and the latter scored out at 780 instead of 730.

Why the Numbers Fluctuate

So how do you attribute different scores over time?

There has to be a scientific explanation of why your score was a 730 last Sunday and a 780 this Sunday, and there is.

The difference in scores is likely attributable to one or more credit report and credit scoring model events. Your score could be different because of;

1) Something material changed on your credit reports.

Assuming everything, and I mean EVERYTHING, stayed the same on your credit reports (dates, balances, statuses, composition) except for one significant change, you could argue that the one change is responsible for the difference in scores.

This would have to be validated by manually scoring the credit report before and after the change and measuring the true impact of that one change.

This manual scoring can take several hours and isn’t fun at all. In fact, I just got the chills thinking about doing it.

2) Something seemingly immaterial changed on your credit reports…but it was actually kind of important.

A great example would be a date associated with an account or with something derogatory.

If an account or a derogatory item crossed one of the many thresholds associated with the age metrics of a credit scoring system and all of a sudden became “older,” that could cause a change in score even though cosmetically the credit reports look the same.

3) Your credit report experienced what’s referring to as Scorecard Hop.

Scorecard hop is a non-technical term meaning that something changed on your credit report and it has caused your credit report to be scored using a completely different series of measurements by the scoring model.

Imagine changing the speedometer in your car from Miles Per Hour to Kilometers Per Hour. You’re still going to same speed but the measurement of your speed is very different.

This can be something as minor as a new account hitting the credit report or an ancient collection falling off.

When you scorecard hop EVERY measurement associated with your credit report changes and it’s next to impossible to put your finger on why your scores are different unless you score the credit report manually.

John Ulzheimer is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry. The opinions expressed in his articles are his and not of Mint.com or Intuit. Follow John on Twitter.

Save more, spend smarter, and make your money go further

  • Previous Post
    10 Out of the Box Back-to-School Basics

  • Next Post
    The Best Things to Buy in August

Browse Related Articles

  • Credit Info

Do Credit Scores Reward You for Having Debt?

How Much Has the Recession Impacted Our Credit Scores?

  • Financial Planning

How to Prioritize Debt and Get the Most Bang for Your B…

<img width="554" height="317" src="https://blog.mint.com/wp-content/uploads/2013/04/Debt-Free-Cash-Only.jpg?w=554&h=317&crop=1" class="rkv-card__media" alt decoding="async" loading="lazy" data-attachment-id="2235" data-permalink="https://mint.intuit.com/blog/cash-next-exit-road-sign/" data-orig-file="https://blog.mint.com/wp-content/uploads/2013/04/Debt-Free-Cash-Only.jpg" data-orig-size="554,317" data-comments-opened="0" data-image-meta=""aperture":"0","credit":"","camera":"","caption":"","created_timestamp":"0","copyright":"","focal_length":"0","iso":"0","shutter_speed":"0","title":"","orientation":"0"" data-image-title="Cash next exit road sign" data-image-description="

Cash next exit road sign 3d illustration

” data-image-caption data-medium-file=”https://blog.mint.com/wp-content/uploads/2013/04/Debt-Free-Cash-Only.jpg?w=300″ data-large-file=”https://blog.mint.com/wp-content/uploads/2013/04/Debt-Free-Cash-Only.jpg?w=554″>

  • Credit Info

Is Being Debt-Free Always a Good Thing?

  • Financial Planning

The Worst Loan You Can Default On Is……

  • Credit Info

How Student Loans Impact Your Credit

  • Credit Info

Will Paying Down a Mortgage or Auto Loan Faster Improve…

Are Personal Loans Right for Me?

  • Financial Planning

Which Debt Should I Pay Off First?

  • Credit Info

Four FICO Score Myths, Busted

Source: mint.intuit.com

Apache is functioning normally

.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrappadding:23px 23px 23px 23px;background-color:#f9fafa;border-color:#cacaca;border-width:1px 1px 1px 1px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-contents-titlefont-size:14px;line-height:18px;letter-spacing:0.06px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:700;text-transform:uppercase;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrap .kb-table-of-content-listcolor:#001c29;font-size:14px;line-height:21px;letter-spacing:0.01px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:inherit;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-wrap .kb-table-of-content-list .kb-table-of-contents__entry:hovercolor:#16928d;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-list limargin-bottom:7px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-table-of-content-list li .kb-table-of-contents-list-submargin-top:7px;.kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_88a319-9a .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:beforebackground-color:#f9fafa;

You were running around doing errands all weekend. From the field at your kid’s soccer game to the mall, it seems as though you covered every square inch of your town. You get home and check your pocket; your wallet is missing. 

Don’t panic. In addition to calling your bank and credit card companies to report your cards lost or stolen or using your banking app to turn off your cards, you can take other steps to protect yourself from identity theft and credit card fraud. 

In fact, if you have any reason to be concerned about identity theft or fraud,there’s a free service all three major credit bureaus (Experian, TransUnion, and Equifax) offer that can help you protect yourself: a fraud alert.

What Is a Credit Report Fraud Alert?

A credit report fraud alert tells creditors you may have recently been a victim of identity theft. Once you add a fraud alert to your credit report through one of the three major credit  bureaus (Equifax, Experian, or TransUnion) that credit bureau also alerts the other two organizations. When potential lenders and creditors see a fraud alert, they should take additional steps to verify your identity before granting credit.

Credit report fraud alerts are different from other types of alerts, such as credit freezes or identity theft reports. A credit freeze prevents anyone, including you, from accessing your credit report without your permission. An identity theft report, as the name suggests, shows creditors that you recently fell victim to identity theft. 

If you file an identity theft report, you should also put a fraud alert on your credit report or even freeze your report to make it harder for criminals to open new lines of credit in your name. As an added benefit, when you place a fraud alert on your credit report, you’re eligible to get a free copy of your credit report from all three credit bureaus twice in that year instead of just once. 

Types of Credit Report Fraud Alerts

Consumers can rely on three different types of credit report fraud alerts, depending on the situation. They vary in duration and who qualifies for each type of alert. 

Initial Fraud Alert

If you worry you’ve been a victim of fraud or just want an added layer of protection for your credit and identity, you can easily apply for an initial fraud alert. This alert lasts for one year. It encourages companies to take an extra step, like calling a phone number you provide, to confirm you filled out a new credit or loan application. 

An initial fraud alert doesn’t prevent you from applying for new credit. (That’s the job of a credit freeze.) It also doesn’t prevent criminals from using your existing credit cards if they’ve gained access to your account number. 

Extended Fraud Alert

An extended fraud alert lasts for seven years. It takes a little more paperwork to apply, but it’s also free. 

You can only apply if you’re a victim of identity theft and file a police report or a report at IdentityTheft.gov. Since gathering all the documentation takes time, you can file an initial fraud alert in the meantime. 

In addition to receiving an additional free copy of your credit report from all three bureaus the year you place the alert, you will also be removed from marketing lists for unsolicited credit card and insurance offers for five years.

Active-Duty Alert

Members of the U.S. military can protect their credit for added peace of mind while they’re deployed. An active-duty alert functions just like an initial fraud alert, making it harder for someone to open a new account in your name. Like an initial fraud alert, an active-duty alert lasts for one year. 

How Credit Report Fraud Alerts Work

When you file a credit report fraud alert, banks, credit card companies, and lenders should take an extra step to verify your information before approving your credit application. 

Often, that means they must call a phone number you provide to verify that you really completed the application. A fraud alert also allows you to secure a second free credit report from each of the three bureaus in the year you initiate the report. 

Keep in mind that a fraud alert does not stop criminals from using your existing credit cards to make fraudulent purchases. 

Placing a Credit Report Fraud Alert

Fortunately, it’s easy and free to place a fraud alert on your credit report. Once you place the alert with one credit bureau, they share the information with the other bureaus. The steps you take depend on whether you want to place an initial fraud alert or an extended one.

How to Place an Initial Fraud Alert

You don’t need to be a victim of identity theft or credit card fraud to request an initial fraud alert. To place one, reach out to one of the three credit bureaus. Each has a slightly different process. 

Equifax 

Visit Equifax’s fraud and active-duty alert page to place a fraud alert with Equifax. You must log in to your account and provide your name, address, and Social Security number. You can also call 800-525-6285 to request a fraud alert by phone. 

Experian

To place a fraud alert with Experian, you can visit the fraud alert center and select “Add a fraud alert.” Choose the type of alert, and then fill out the information requested on the form. You need a valid email address and your Social Security number. You can also call to place a fraud alert at 888-EXPERIAN (888-397-3742). 

TransUnion 

To place your fraud alert with TransUnion, visit TransUnion’s fraud alert page. Log in to your TransUnion account and provide a valid email address and your Social Security number. You can also call 800-916-8800 to place a fraud alert by phone. 

How to Place an Extended Fraud Alert on Your Credit Reports

Placing an extended fraud alert requires a few extra steps and some additional information. For example, you must file and submit an identity theft report. You can download the form to mail at these websites:

Each credit bureau has slightly different requirements to prove your identity and address. 

Before mailing the form, gather all the documents you must mail with it, including the: 

  • Police report, law enforcement agency report, or Federal Trade Commission identity theft report
  • Photocopy of documentation to prove your identity, such as your Social Security card, pay stub with your Social Security number, W2, or 1099. 
  • Photocopy of paperwork to prove your mailing address, such as a driver’s license or state ID card, rental lease agreement, house deed, pay stub showing your address, bank statement with your address, or utility bill with your address. 

TransUnion also accepts a canceled check with your home address, a stamped P.O. Box receipt, or a signed letter from a homeless shelter as proof of residence. 

Once you’ve gathered this information, send it to one of the bureaus along with the extended fraud alert form you downloaded from the website. Experian allows you to upload the form and supporting documents electronically.

Once you’ve gathered the necessary documentation, mail the form you downloaded and printed to the appropriate address below. 

Equifax Information Services LLC
P.O. Box 105069
Atlanta, GA 30348-5069		 Experian
P.O. Box 9554
Allen, TX 75013
(or upload) 		 TransUnion
P.O. Box 2000
Chester, PA 19016

Benefits of Placing a Credit Report Fraud Alert

If you’re wondering if you should place a credit report fraud alert, then you should. A fraud alert can help protect you from identity theft and credit card fraud, which provides added peace of mind. 

If you’ve been a victim of fraud or recently lost your wallet or misplaced important documents like your driver’s license, it’s worth taking the time to place a credit report fraud alert. 

Although a credit report fraud alert can’t stop thieves from using your existing credit cards (you have to report those stolen), it makes it harder for someone to open new credit in your name. 

If you place an extended fraud alert, you’ll also be free from unsolicited credit card or insurance applications for five years. That means less junk mail and less chance thieves can open credit cards or apply for insurance in your name. 

Final Word

While the Federal Trade Commission’s data shows instances of credit card fraud dropped slightly from 2021 to 2022, the amount of money scammed from consumers rose by 30% in the past year, up to a staggering $8.8 billion. Fortunately, there are steps you can take to protect yourself.

For instance, use virtual account numbers for online shopping, read your bank and credit card statements carefully, and sign up to receive notifications via text if a card shows unusual activity. Finally, set up an initial credit report fraud alert as an added layer of identity protection. 

Dawn Allcot is a full-time freelance writer and content marketing expert, specializing in personal finance, technology, real estate, and insurance. Her work has been widely published across the web, including on Bankrate, The Balance, Solvable, and the award-winning Chase News & Stories portal. Dawn is, additionally, the founder of GeekTravelGuide.net, a travel, technology, and entertainment website for the geek in all of us.

Source: moneycrashers.com