Ebony, July, 2000
You may not know it, but businesses and credit agencies are talking about you behind your back, circulating reports and giving intimate, sometimes erroneous and painful, details of your financial life.
Did you miss two car payments when you were ill?
Did a creditor take you to court for refusing--rightfully--to pay for shoddy work?
Did your ex-wife or ex-husband spread false reports about your money-laundering habits?
All these and other items, including false and incomplete information, may be in the credit reports that agencies use to determine your credit rating. Some 2 billion pieces of information are downloaded every month to update the information on you and other consumers. With so much information going into the system and no one to verify whether it's a rumor or a fact, it's nearly impossible to prevent mistakes. It's even possible for someone else's credit report to "bleed" into your file.
To make things worse, there is not one, but at least three major credit files maintained on you from three different companies. In addition to the "big three" credit agencies--Equifax, Experian, TransUnion--smaller agencies also sell information about your financial life. With so many people circulating so much information, it's vitally important that you find out what they are saying about you.
"If you don't check your credit report at least twice a year, you're going to find all kinds of problems," says Dean Taylor, a business manager for an automobile dealership outside Atlanta. "It is crucial."
Taylor, who's worked at the dealership arranging financing and checking credit reports for seven years, says that the "big three" credit bureaus are not credit verifiers; they simply report information they receive.
Many times that's not enough. A poor credit report can lead to a negative credit rating, which in turn can result in a denial of a home or car loan, apartment rental or even a job. So it's important to verify the information on your credit report and protect your credit rating. Don't wait until your house is on the market and the bank's holding up your new home or car loan because of a fixable mistake.
COPYRIGHT 2000 Johnson Publishing Co.
COPYRIGHT 2000 Gale Group